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Thursday, 28 May 2020|

MEDIA STATEMENT - Findings of Special Survey (Online) Effects of COVID-19 on Economy and Companies/ Business Firms

MEDIA STATEMENT


FINDINGS OF SPECIAL SURVEY (ONLINE) EFFECTS OF COVID-19
ON ECONOMY AND COMPANIES/ BUSINESS FIRMS


 

PUTRAJAYA, MAY 8, 2020 - Majority of the companies/ business firms participating in the Special Survey Effects of Covid-19 Survey on Economy and Companies/ Business Firms (Round 1) stated that they had issues/ challenges in doing business during the period of the Movement Control Order (MCO) in which the salary payment dominated the issues/ challenges faces by the company/ business firm with 76.6 per cent, followed by no customers at 65.5 per cent.

This main findings was shared by the Department of Statistics Malaysia (DOSM) based on feedback from 4,094 companies/ business firms participating in a special survey conducted online from April 10 to May 1, 2020. The analysis shared in this main findings includes qualitative views based on respondents who participated in this survey and cannot be generalised to represent the views of all companies/ business firms in Malaysia. It should be interpreted with caution to assess the impact of COVID-19 in Malaysia and not as official statistics. However, it can be used to support in providing an overview of the current situation.

In terms of profile analysis, micro-scale companies/ business firms were the highest respondents in this survey with 43.4 per cent, followed by small-scale companies/ business firms (40.4%) and medium and large-scale at 9.1 percent and 7.2 per cent respectively..

Looking at the impact on companies/ business firms, more than half of respondents (53.4%) said they able to survive for 1 to 2 months only if they provide full-time/ half paid leave to employees during MCO. Throughout the MCO period, 67.8 per cent of respondents stated that no sales/ revenue during MCO. Meanwhile, 12.3 per cent of companies/ business firms earn revenue through online sales/ services and 9.8 per cent from on-premise sales physical/ shop.

This study also found that 88.8 per cent of respondents from Private Limited Company category had faced issues/ challenges in salary payment. Otherwise, Individual Proprietorship stated that the main challenge was no customers by 70.7 per cent followed by salary payment (62.5%).

A total of 42.5 per cent of respondents estimated that it would take more than 6 months for their company/ business firm to recover as normal if COVID-19 was restrained. Meanwhile, 28.7 percent of respondents estimated that a 4-6 month period was required. Otherwise, 1.9 percent of respondents said their company / business firm would not recover and was expected to close.

The study also found that 68.9 per cent of respondents used savings as the main source to accommodate operating cost/ working capital during MCO, followed by 19.8 per cent through loan and 11.3 per cent was capital injection. The two main assistances needed by companies/ business firms are finance/ subsidies from the Government (83.1%) and corporate tax deductions (67.0%).

“During MCO, various government incentives have been provided, including an additional funding of RM10 billion, specifically to help ease the financial burden of Small and Medium Enterprises (SMEs), as well as micro enterprises. It is a radical PRIHATIN measure that will radically stimulate the SME industry in the country besides revitalizing the country's economy today, “said Dato 'Sri Dr. Mohd Uzir Mahidin, Chief Statistician Malaysia.

"Therefore, through the findings of this Special Survey, 52.1 per cent of companies/business firms have stated that this PRIHATIN Package can ease their burden," he added.

The full report of this Special Survey is accessible via DOSM’s portal at www.dosm.gov.my or at official social media, Facebook, Twitter and Instagram @StatsMalaysia.

 

Released by:
Department of Statistics, Malaysia
8th May 2020


Download this media statement as PDF format here.