Source: Malay Mail
Kuala Lumpur, May 22 - Even as restrictions were eased to allow selected economic sectors to operate, a survey done among local service-based small and medium-sized enterprises (SMEs) showed how these entities, despite resuming operations, are still facing financial strains and inconsistent market demand triggered by measures taken to contain the Covid-19 outbreak.
According to the study conducted by local home services online platform Recommend.my :
“The majority of SMEs reported facing financial difficulties (60.3%) while operating during CMCO, and 48.3% experienced customer delays or cancellations, reducing their potential revenue.
“(A total of) 41.4% also reported that job sites were blocking entry. These are mainly condominiums or gated neighbourhoods.
|Other main problems these SMEs ran into once they opened||Percentage (%)|
|Bearing the costs of Covid-19 test for their workers||27.6|
|Dealing with demanding customers who insist on adherence to government standard operating procedures (SOPs)||24.1|
|Insufficient manpower (due to a big number of local and foreign workers having returned to their hometown or home country)||24.1|
|Employers’ concerns of staff health||22.4|
|Inconsistent supply of raw materials||19|
Companies remain closed
Almost half (48.5%) of the companies who decided to remain closed said it was due to the financial strain brought upon by the two months of business disruptions under the MCO that began on March 18, with 42.4% of saying they stayed closed due to the unclear and shifting government policies.
A total of 36.4% of those who remained closed:
- would wait until the CMCO was fully lifted to resume operations, as 27.3% refrained from opening fearing their own health, with 21.2% saying they were worried about adhering to the strict SOPs.
|Other reasons kept them closed||Percentage (%)|
|Facing police roadblocks despite there not being any at inter-district level||15.2|
|Lack of manpower||15.2|
|Cost of Covid-19 testing required for staff||12.1|
|Denied entry into job sites||12.1|
|Concerns of employees’ health||6.1|
|Dealing with demanding customers||6.1|