CLOSE to half of the 916 businesses surveyed by a think tank indicated they would need at least six months to recover after the movement-control order (MCO) ends. 

The Quick-Take Survey on Post-MCO Exit Strategy – conducted by the Associated Chinese Chambers of Commerce and Industry of Malaysia’s (ACCCIM) think tank, Socio-Economic Research Centre (SERC) – revealed 48.1% of the respondents needed six months, while 32.1% said they required between three to six months to recover.

About 7% said they needed less than three months while 12% were unsure of the time taken to recover. 

ACCCIM president Ter Leong Yap said while the stabilisation and recovery journey ahead continues to remain challenging, businesses can regain their lost momentum if they persevere and remain focused. 

A timely facilitation of support from the government will also be helpful, Ter said.

Meanwhile, 89.3% of the businesses surveyed said they expect conditions to remain the same after MCO. 

This includes safe distancing, wearing masks, sanitisation and other counteract measures critical to keep the public safe.

“Places like government offices and municipal councils, professional services, restaurants and eateries have the highest percentage of respondents indicating to allow operating with conditions,” said Ter.

He added that this is also an indication that businesses are strongly committed safeguard the health of their workers and customers.

“A total of 76.2% of respondents are well prepared to comply with the SOP (standard operating procedure), although some small and micro enterprises have low preparedness.”

Respondents also highlighted three common issues and challenges faced while complying with the SOP.

This include incurring additional health prevention costs, layout of workplace and factories unsuitable for 1m safe distancing, and employees worrying about their health.

He also urged Putrajaya to engage with ACCCIM and industry associations in preparation for the MCO’s exit strategy and to explore the best ways to facilitate business operations. 

The recommendations mooted by the respondents include co-sharing health prevention costs via a tax deduction on health cost incurred (ranked by 87.3% of respondents); setting a clear and transparent SOP, consistent interpretation and enforcement of SOP (78.9%); and continued disinfection operations nationwide to protect public health safety (75.3%).

“SERC will be submitting a comprehensive Economic Revitalisation Plan to Prime Minister Muhyiddin Yassin, International Trade and Industry Minister Mohamed Azmin Ali, Finance Minister Tengku Zafrul Tengku Abdul Aziz and Minister in Prime Minister’s Department (Economy) Mustapa Mohamed this week.”

The survey was conducted from April 13 to 21 to solicit feedback from the business community on the preparations for MCO’s exit strategy.

Survey also outlines medium-and long-term measures to ensure economic revival and business sustainability. – April 21, 2020.