Question

The financial impact of COVID-19 in Malaysia

“It is without a doubt that the COVID-19 situation has impacted global markets. It is an

unprecedented event and many – including businesses – have been taken by complete

surprise with the way things have been unfolding. For example, the global aviation sector

is forced to scale back their operations as people are no longer travelling. Non-essential

businesses including real estate, construction, automotive, travel agencies and retail

outlets have been forced to close. Many businesses are now finding it hard to keep up

with their monthly expenses. To help ease the burden, Bank Negara Malaysia (BNM)

announced a six-month moratorium period for loans and mortgages. However, even with

the relief from lenders, it is envisaged that many individuals and businesses will still

struggle to make ends meet. It is no longer business as usual, and the seriousness of the

domino effect towards the end value chain i.e. households, must be recognized. When

households are no longer spending, that’s when more businesses start to fail.”

AICB

25 August 2020

Based on the article extruded from Asian Institute of Chartered Bankers (AICB) dated 25th August 2020.

From your point of view as a concerned Malaysian citizen, rationalize how companies survive during pandemic Covid-19

Answer 1

Survival during the times of Covid - 19 is not easy but at the same time not impossible. Companies need to identify and adopt to the new normal. Some of the measures that caompanies can adopt to survive are:

• Continue the work, even in distorted manner, online. Quickly bring the products and servies online so that you continue to sale, although at a lower rate, amidst falling demand.
• Enable employees to work from home. That way they will be safe and the work can continue.
• Cut down on the cost. Vacate the offices and premises you are no longer needing. This will enable you to get rid of fixed expenses.
• Work from home will also help the companies cut overhead costs like stationery, printing, administration, electricity.
• Ask before you spend every penny as: Why am I spending this penny?
• Redeploy employees. Work out a ladder cut in the salaries of the employees and make the message reach that: survival of the company in this crucial time is important.
• Continue to celebrate online all your successes. This will keep the morlae of the company high.

Covid - 19 is a temporary phenomena. It needs to be lived through. But it sure will pass, separating the men from the biys. Hence, companies do need to hold on and wither the storm.