AFTER losing their regular income after the movement-control order (MCO) came into force on March 18, Hamidah Hussin’s family is slowly pulling out of the hardship caused by the Covid-19 pandemic.

However, they are still nowhere near earning what they used to.

Her husband, the primary breadwinner, earns only two-thirds of what he used to make from his furniture store as his boss cannot afford to pay his previous salary due to sluggish sales.

“My husband borrows from the boss every month to buy groceries. At the end of the month, these borrowings are subtracted from his pay,” said Hamidah at her flat in Puchong.

“The company said it could only pay full wages once the economy improves, so the workers have to make do with what they are receiving. It’s better than not receiving anything.”

Hamidah is one of nine B40 families The Malaysian Insight interviewed in late April, at the height of the government-imposed lockdown.

Recently, The Malaysian Insight went back to ask them how they are coping now that Malaysia has reopened some of the previously closed economic sectors on July 1.

Only two families said they are now able to earn the same amount they did before the MCO was implemented.

The rest, like Hamidah, said they have had to make do with less due to cuts in wages or less sales from their informal businesses due to consumers cutting back on spending.

Their reduced income is the reason why the World Bank recently urged the Malaysian government to continue with cash aid schemes for the lowest-earning households to sustain economic recovery.

During the MCO, Putrajaya had given out RM10 billion in one-off cash aid under its Prihatin stimulus package for households and bachelors earning below RM8,000. Those earning between RM400 to RM800 per month received RM1,000.

Households earning below RM4,000 received RM1,600 in April and May.

All but two of the households interviewed received RM1,600 in Prihatin aid.

World Bank country manager for Malaysia Firas Raad had said despite measures, such as the Prihatin and Penjana packages, B40 households will likely need continued help.

Festival rush turns into trickle

Three of the nine families visited by The Malaysian Insight were informal sector workers who did not receive retirement contributions, social security (Socso) aid or were daily-wage earners.

The others were informal micro-entrepreneurs, most of whom are not registered with the Companies Commission of Malaysia, Inland Revenue Board or local councils.

The first phase of the MCO, which shut down most economic sectors, ended on May 12.

It was replaced with the conditional MCO, which allowed more industries to reopen, except those at high risk of attracting crowds.

On July 1, Malaysia allowed businesses, such as tourism spots, cinemas and theme parks, as well as events like weddings and conventions, to resume.

Zainul Azman, an informal sector worker, said he and his wife were able to get their old jobs back and earn the same salaries as before the MCO.

“It was still tough at first. There weren’t that many trips when the construction sector reopened because many sites were still closed,” said the 51-year-old lorry driver who delivers construction materials.

“But, the week after Hari Raya (June 25), many sites were back in operation, so I’ve been able to make just as many trips as before the MCO. My wife also got her old factory job back.”

In Penang, Alif Hassan has gone back to work as a night market cook, selling fried noodles and rice in Permatang Pauh.

“During the lockdown, I took a job as a motorcycle courier for ABX. They paid about RM2 per trip. It was something to sustain myself when night markets were closed.”

Zainur and Alif’s families are the only two earning the same income as before the MCO.

In comparison, those involved in small businesses, such as David, who owns a small electronics store in Subang, are only earning between 30% and 70% of what they used to make.

“When the CMCO ended two weeks before Hari Raya, my store saw a boost in sales from people buying blenders, rice cookers and food processors,” said David, 57, who preferred to use only his first name.

But, after the Hari Raya rush, sales gradually declined, and by the beginning of this month, his store was making only between 60% and 70% of what he used to make in the same period last year.

“Sales are not consistent. Sometimes, I only make 50% of my regular income.”

Yusnani Daud’s tailoring shop lies a short walk from David’s store and her experience has been similar – the Hari Raya festival gave her a flood of orders for clothes but since then, business has slowed to a trickle.

“Today, business is down to only 30% of the usual as customers are cutting back on their spending,” said the 40-year-old.

When the MCO hit, Harun Yaakob’s work as an MC and sound system specialist for events instantly dried up.

“My wife and I started selling nasi lemak because there were no more events and weddings. I just got my first gig on Sunday (July 5).

“We’ll see how it goes from there and whether I will get any more gigs. I’ll continue selling nasi lemak even though I make less from that than from events.” – July 6, 2020.