HAMZAH Badarun had no retirement savings when Malaysia went into a partial lockdown to fight the Covid-19 pandemic, and if not for government aid, he and his wife would have starved.

“All my EPF (Employees Provident Fund) money was used up for my children’s education,” said the 60-year-old cendol and ais kacang seller in Permatang Pauh, Penang.

“I had no savings at all. For three months, I relied on help from the federal and state governments, and the Permatang Pauh parliamentary service centre.

“I was also forced to ask my children for help,” he told The Malaysian Insight, recounting his experience during the eight-week movement-control order (MCO) from March 18 to May 12.

The possibility of a second MCO has clearly spooked Hamzah, who shook his head as he contemplated how his family will survive another lockdown.

“I don’t know what to say. I fear that people will get desperate and do whatever it takes to feed their children. I have no savings and no plans on how to survive a second round.”

Hamzah is among those in the bottom 40% of households hit the hardest when the MCO shuttered most of the economy. Micro-entrepreneurs such as himself, as well as daily wage earners in the vast informal sector, lost their income overnight.

In 2017, the Khazanah Research Insitute (KRI) found that one in 10 workers in Malaysia, or 10.6% of the workforce, held non-agricultural jobs in the informal sector.

That figure may be higher now, as KRI studies have shown that jobs in the informal sector are growing at a rate of 4.5% per year, more than twice the annual growth rate of 2.1% for positions in the formal sector.

Jamaluddin Sidek, a tailor in Shah Alam, drained his savings to put food on the table during the MCO and keep his business afloat.

“I am stuck with a lot of material that I ordered before the fasting month, because in the past, tailors like me would be fully booked doing baju raya (clothes for Hari Raya Aidilfitri).

“But when the MCO happened and people could not go out to celebrate Raya, my usual orders almost disappeared. So, I still have a lot of stock, but business is only half of what it was.”

Without savings left and an income that is much lower than usual, the 53-year-old fears that his business will not survive a second lockdown.

No more savings

Hamzah and Jamaluddin are among those from 10 low- and middle-income families interviewed by The Malaysian Insight on how they are coping during the recovery MCO.

They were asked whether they are prepared for a second round of closures if Putrajaya deems it necessary to break the chain of coronavirus infections.

Prime Minister Muhyiddin Yassin has said the government may be forced to impose the MCO again if cases continue to rise, as Malaysians grow increasingly complacent about following social-distancing rules and self-quarantine measures.

He warned that a second lockdown could cost the country RM2 billion in lost revenue per day.

Putrajaya allocated RM295 billion in direct and indirect aid, including grants, loans and deferred payments, to help jump-start the economy after the MCO.

None of the families interviewed has a contingency plan should the government order another lockdown.

Tea stall operator Abdul Aziz Abdil Abrahim, 43, is only starting to rebuild his savings, having used up the funds he had during the MCO.

“During the MCO, I could only make RM20 to RM30 per day. It was just enough to feed my wife and children. I also received RM1,600 from the federal government and RM500 from the state.”

Sales at his Permatang Pauh stall after it reopened are encouraging, and Aziz is optimistic about replenishing his savings.

“When I heard the prime minister’s warning about shutting down the country again if the number of infections increases, it gave me the chills. I’d be finished if I had to close my stall again. This is the only income for me and my family.”

Technician Shazwan Awang Mat said his company’s business is only 40% to 45% of what it used to be before the MCO.

“People are saving money in case there is another emergency, so they don’t want to spend on anything other than necessities,” said the 30-year-old, who works with a small firm that installs home broadband.

“During the MCO, I sent money to my wife and parents in Kelantan, but if there’s another one, I don’t know if I can continue to do that and still survive on my own here. It will be tough,” said Shazwan, who stays in Puchong.

Jufri Mohamed was the last among those interviewed to resume business, as barbershops were only allowed to reopen on June 10.

“In the first 10 days, I had a lot of customers, but it has since slowed down. I’m only starting to make enough to break even, especially with the new standard operating procedure in place.”

Barbershops have to limit the number of customers on the premises and spend extra on disposable plastic aprons for their clients.

“I only have 30% of the customers I used to have. If there is a second lockdown, it will definitely be very painful for me, especially because I’ve invested a lot in enforcing the SOP,” said the 37-year-old Jufri, whose household qualifies for the RM1,600 government aid.

“I can’t say that I live hand to mouth, but I’m not comfortable either.”

If the MCO is imposed once more, he said, families like his will need a lot more aid to not go hungry. – July 25, 2020.