PETALING JAYA: About two-thirds of Malaysian businesses say they have no source of income throughout the movement control order (MCO) and had to use their own reserves to keep afloat.
In an online survey conducted by the Statistics Department of Malaysia (DOSM), 67.8% of respondents said they have not brought in any income during the MCO.
“About 12.3% of companies still earn some income through online sales and services, while another 9.8% were earning income from sales in physical premises and stores, ” DOSM said in a statement on Friday (May 8).
Two-thirds of the respondents (68.9%) also reported having to fork out their own savings as the main source in paying off operational costs during the MCO.
Another 19.8% used mainly borrowings, while another 11.3% had to use capital injection.
About 52.1% of the companies have found the government’s economic stimulus package - Prihatin Rakyat - helpful.
However, 83.1% of them still reported needing financial aid and subsidies from the government.
The biggest challenge faced by businesses is paying wages (76.6%), followed by the lack of business from clients (65.5%).
More than half of the respondents (53.4%) said they were only able to last another one or two months, should they have to offer paid leave facilities to workers during the MCO.
About 42.5% of the respondents estimated that they would need more than six months to recover, while 28.7% estimated needing between four to six months.
“In contrast, 1.9% of businesses said they will not recover and expect that they will have to shut down, ” DOSM said.
The survey had 4,094 respondents, which comprised micro-enterprises (43.4%), small companies (40.4%), medium-sized companies (9.1%) and large companies (7.2%).
It was conducted online by the DOSM from April 10 to May 1.
“The analysis encompasses qualitative views of the companies and firms in Malaysia.
"The findings must be interpreted carefully when assessing the effects of Covid-19 in Malaysia, and are not considered official statistics.
“However, the findings can be useful in giving a picture of the current situation, ” DOSM said.
Source: The Star Online