Business Economics

Covid-19: Two-thirds of businesses without income during MCO

Like in other countries, the MCO has been hard on businesses in Malaysia.

TheMole
Written by TheMole

KUALA LUMPUR — May 8, 2020: A survey by the Department of Statistics found that about two-thirds of Malaysian businesses reported having no income under the movement control order (MCO) due to Covid-19 and had to rely on reserves to survive.

In the online survey about 12.3% said they still earned some income through online sales and services while 9.8% had income from in-store sales.

Two-thirds of the respondents reported having to use their savings as the main source to pay overheads, 19.8% used mainly borrowings while 11.3% had to resort to capital injection.

About 52.1% found the government’s economic stimulus package, Prihatin Rakyat, helpful but 83.1% still needed financial aid and government subsidies.

The main issue faced by businesses was to pay wages.

About 42.5% of respondents said they would need more than six months to recover while 28.7% put the time frame at between four and six months.

Close to two per cent of the 4,094 respondents expect to close shop altogether.

Comments

comments

About the author

TheMole

TheMole