AMIRUL Ramly feels he’s been dealt a double blow by the coronavirus and the ensuing movement control order (MCO) that has shut down most of the economy.

His experience as one of the 1.4 million workers in the informal sector workers indicates that Putrajaya must put job security at the centre of long-term policies to help low-income families survive the ravages of the coronavirus, said experts.

Amirul, who lives in Puchong, lost his only source of income as a freelance electrician when the MCO suspended all construction projects save large-scale developments such as highways and public transit railway lines.

Because the 44-year-old Amirul is self-employed and not registered with the Companies Commission of Malaysia (CCM) or the Inland Revenue Board, he is not in the government database.

This means he does not automatically qualify for Putrajaya’s Bantuan Prihatin Nasional (BPN) scheme aimed at helping low and middle-income families during the MCO.

“I’ve applied for the BPN but last time I checked, my application is still being processed,” said Amirul, more than two weeks after the government said BPN aid would be distributed.

“My friends have already received the BPN but I have not. They are put on leave while their wages are being paid but I have no income because I cannot work. On top of that I also have trouble receiving BPN.”

People like Amirul are in what the Khazanah Research Institute (KRI) calls the “informal sector”, where firms “have less than 10 workers, are profit-oriented but not registered with CCM, professional bodies or the local government”.

In 2017, KRI found that one in 10 workers in Malaysia or 10.6%, had non-agricultural jobs in the informal sector.

That number could be higher now as KRI findings show that jobs in the informal sector are growing at a rate of 4.5% per year, more than twice the yearly growth rate of 2.1% of jobs in the formal sector.
 
“Most workers in the informal sector were own account workers and home-based,” according to a paper entitled “Unregistered and “Invisible”: Workers in Malaysia’s Informal Sector”.

Informal sector jobs are often considered precarious as they don’t have legally mandated labour protections such as sick and paid leave, social security and retirement funds.

In an emergency such as the current coronavirus pandemic, the fact that the government has scant details of Amirul’s income also means that it is hard for him to get aid such as BPN.

Fuelling recovery

Already in its sixth week, the MCO has been again extended till May 12 to break the chain of coronavirus infections which have so far sickened 5,691 people and killed 96.

The Malaysian Insight interviewed 10 low and low-middle income families in Selangor, Kuala Lumpur, Penang and Sarawak on how they were coping and how they were spending their BPN aid.

Under the BPN, households earning less than RM4,000 per month will receive RM1,600 while those earning between RM4,000 and RM8,000 per month will get RM800.

Seven out of the low-income 10 families The Malaysian Insight met have lost their income after the MCO was enforced on March 18, either because they were daily wage earners or they have been put on unpaid leave.

Out of the seven, five, including Amirul, are informal sector workers who earned a daily wage. All but one of the households interviewed hoped to get back to work as soon as possible.
 
Before the MCO, Hasan Sidek of Penang made between RM70 and RM80 per day from his roadside nasi campur stall while his son also earned a daily income from trading at a night market.

Night markets are banned under the MCO while restaurants can only serve takeaway and delivery orders.

Hasan received RM1,000 from BPN while his son received RM800.

“If the MCO is extended, the money will be not enough as we are already stretching the aid that we’ve received,” said Hasan, adding that he hopes to restart his business and earn an income again.

In Kuching, Nornadiah Bolhassan’s family is almost broke after sales from her online business plunged while her husband has been unable to continue his work as a petition writer.

“We’re relying on our meagre savings. My susband has no income due to the (MCO). My online sales are all on cash on delivery terms and I cannot move around to do deliveries,” said the 33-year-old.

Lorry driver Zainul Azman of Subang Jaya also lost his income after the government temporarily suspended construction work.

“I earned RM80 day, six days a week, transporting materials for construction projects. If the projects don’t continue, I don’t have work,” said Zainul, whose application for BPN is still being processed.

His family has been living on the income from his wife’s factory job but even that has been reduced as the company was forced to close due to the MCO.

The experiences of these households, said the Federation of Consumers’ Association (Fomca), reflect the devastating impact the coronavirus has had on low-middle income earners.

“The critical thing the government must do in the medium and long term is to preserve jobs and incomes, which is why aid for SMEs (small and medium enterprises) to continue paying their employees is important,” said Fomca secretary-general Paul Selvaraj.

Policies to create jobs and protect job security post-MCO must focus on informal sector workers including migrants as they are particularly vulnerable, Selvaraj said.

“They earn a daily wage, have no labour protections and the wages themselves are small.

“If these people lose their jobs and source of income it will be tough for them and their families to recover. The government must do all it can so that people don’t lose jobs as this also helps fuel the economic recovery.” – April 25, 2020.