Covid-19 reshaping business


Emmanuel Joseph

Ramadan and pre-Raya businesses, among them bazaar traders, clothing retailers, and cake and cookie producers, will be adversely affected by the MCO. – The Malaysian Insight file pic, April 1, 2020.

AFTER much exasperated blinking, Malaysia has completed the first half of the movement-control order (MCO).

With another two weeks to go, many have gotten used to the restrictions put in place to flatten the Covid-19 curve. The MCO’s positive impact on public health will be seen in a week or so, and the degree of it will determine whether the government directive ends on April 14 or is extended again.

Given that a sizeable proportion of B40 folk are daily wage earners, focusing on the economy is equally important, especially when dealing with the aftermath of the MCO. The government has rightly prioritised this group, whose needs are immediate.

In a similar vein, attention must also be given to small and medium enterprises, the most at-risk business group. While large companies have considerable reserves and can sustain themselves longer, SMEs generally depend on day-to-day sales, and the loss of a month’s income is certain to take a heavy toll on them. Making things worse is an economy that has been under the weather since the start of the year and never got a chance to recover before the coronavirus hit.

Many SMEs that make their money seasonally are especially affected, among them tourism-based businesses during the school holidays and vegetarian product traders catering to Christians during Lent. Ramadan and pre-Raya businesses – thousands of bazaar traders, clothing retailers, and cake and cookie manufacturers – will be impacted particularly hard.

SMEs play an important role in the delivery system of both the government and large corporations. Big supermarket chains are not keen to open in small towns and villages, and major healthcare providers don’t usually have clinics in sparsely populated areas.

Without SMEs, ranging from boutique outlets to franchisees of established brands, our malls would be pretty dead. Malaysia has 950,000 of such businesses, and to have even just 20% of them be forced to close up shop would be devastating for the economy.

SMEs hire roughly 70% of the nation’s workforce. They are a stepping stone for many Malaysians without work experience to launch a career in large firms.

However, not all SMEs are equal – the range is simply too wide, from your wantan mee seller to a more stable (and richer) manufacturer. The government’s aid to them should correspond with their capability, criticality and contributions to the community.

While big companies have few problems adapting to work from home, SMEs lack the resources to rationalise digitising themselves. The federal and state governments should assist them to this end. It’s the prudent step to take as the effects of the pandemic are not yet fully known, and social distancing and market pessimism look to continue for a while.

Terengganu’s move to provide an online platform for Ramadan bazaar traders is a great example to be followed by other states.

In the meantime, to soften the MCO’s blow to the domestic economy, those who are able should buy local and support nearby businesses. Use delivery services, whose riders could use the extra money.

Supporting frontliners with supplies and services allows SMEs to sustain themselves a bit longer, and this, in turn, lets their employees keep their jobs – like Selangor booking hotel rooms en bloc for volunteers.

While waiting for the government aid to kick in, we can spread our saved ringgit to benefit the most people for as long as possible.

Like it or not, in small ways or big, Covid-19 is changing the way we do business. The faster we adapt, the better. – April 1, 2020.

* Emmanuel Joseph firmly believes that Klang is the best place on Earth, and that motivated people can do far more good than any leader with motive.

* This is the opinion of the writer or publication and does not necessarily represent the views of The Malaysian Insight. Article may be edited for brevity and clarity.


Sign up or sign in here to comment.


Comments


  • With people encouraged to order online, has anyone thought about what the enormous packaging materials and plastic waste will do to our environment. Our landfillls will be filled with heaps of rubbish that cannot be processed. Our landfills before the pandemic were already at maximum capacity. As it is, millions if not billions of masks and PPE are also discarded everyday. Where will this go? The environment ministry will have to find a viable solution to these kind of discarded rubbish.

    Posted 4 years ago by Elyse Gim · Reply