Incorporating Employment (Amendment) Act 2022
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Survey Summaries


MEF Survey on Impact of Movement Control Order (MCO) in Combating COVID-19 Pandemic to Malaysian Businesses (1 – 18 April 2020)
Published on 9 February 2022
 
 

MEF conducted two pulse surveys to obtain feedback and comments from members with regards to the impact of MCO in combating COVID-19 pandemic to businesses and the effectiveness of stimulus package 2 to assist businesses to retain employment.

The surveys revealed that:

  • 38.4% of the respondent companies fully shut down or partially shut down with employees working from home during MCO period from 18 March - 14 April 2020 (38%), in full operation as usual and granted exemption by Ministry of International Trade & Industry (MITI) (18.8%) and in full operation as allowed under essential services (4.8%). 
  • 89.8% of the respondent companies indicated that the imposition of MCO had caused huge negative impact to their revenues. Of these companies, 29.8% of the respondent companies indicated that their company revenues have fallen by more than 50% during the imposition of MCO followed by 30% to 50% (26.3%) and 10% to less than 30% (23.5%).
  • With regards to the business operational sustainability following the extension of MCO from 1 March to 14 April 2020, 56.6% of the respondent companies indicated that their companies were able to meet the financial obligations for the period of 1 – 3 months only followed by 4 - 6 months (19.7%) and more than 12 months (8.8%).
  • Approximately two thirds of the respondent companies were of the view that overall the PRIHATIN Economic Stimulus Package was not beneficial to their companies in short term (3 months), medium term (6 months) as well as long term (more than 6 months).
  • On the proposed measures to mitigate the impact of COVID-19, 88% of the respondent companies proposed that Government review individual and corporate tax rate for a maximum of 18% as a measure to mitigate the impact of COVID-19, Wages Subsidy Program should be extended to all employees (87.6%), further reduction of utility rate (78.4%), waiver or reduction of SST to 3% (78.0%), full exemptions of EIS and SOCSO for employer and employee (73.7%) and reducing the EPF employer contribution rate (65.6%).
  • 53.8% of the respondent companies indicated that they were not sure whether their companies would undergo retrenchment exercise as one of their cost cutting measures due to COVID-19, 32.3% of the respondent companies do not have any retrenchment plan, 13.9% of the respondent companies have plan to undertake retrenchment of their employees. Of these companies that plan to undergo retrenchment, 38.9% of them indicated that they would retrench 1% to 10% of their employees followed by 11% to 20% (27.8%) and 21 to 30% (16.7%).​

Tags/Keywords
COVID-19,  Pandemic
 
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