Malaysia returns to business on May 4 with most sectors allowed to resume operations. Prime Minister Tan Sri Muhyiddin Yassin revealed most economic sectors and business activities will be allowed to occur, although some conditions have been put in place.
That is good news for the country’s economy which has been hit hard since the movement control order (MCO) took effect. The government estimates that Malaysia lost MYR 2.4 billion (USD 558.5 million) daily during MCO. Total losses are predicted to be as much as MYR 63 billion (USD 14.6 billion).
Even as Malaysia returns to business, it remains to be seen just how exactly things will play out. Health guidelines remain in place that are likely going to change operating practices for a significant number of companies.
“There are a lot of aspects to get used to and gaining acceptance in terms of adhering to health guidelines and standard operating procedures such as social distancing, putting on masks and temperature checks,” SME Association of Malaysia President Datuk Michael Kang told New Straits Times. “Even now, we have to figure out a way to keep the number of staff to a minimum, as gatherings are not allowed and there needs to be a scheduling of meetings.”
Kang isn’t worried about this. He believes Malaysia businesses are innovative enough to adapt, but it will take some time for the changes to take hold.
“A lot of new business models will come up and our Malaysian businessmen are creative and innovative. They will find solutions to overcome the new norms and policies,” Kang stated. “This will take time – it would be at least three to six months before it gets to a comfortable level. It may only go into full gear next year.”
Businesses cannot find this comfort level on their own. The only way Malaysia fully returns to business is with the assistance of the government.
“I think the main thing that the government needs to do is to instill confidence on two fronts. First is that the Covid-19 situation will be well under control to manage the fear of a second wave,” Peter Lim Tze Cheng, Head of Research at EquitiesTracker Holdings Bhd, explained to The Star. “The second would be the confidence in our economy. Business and consumption… move on confidence. If there is a sense of uncertainty, it is hard for the domestic economy to move.”
