THE IMPACT OF COVID-19 PANDEMIC

The Covid-19 pandemic is affecting hundred thousand people around the world including Malaysia in many aspects especially economy, health and safety. Certainly, everyone is very concern about their health condition as well as their future in so many aspects such as job and life. Hence, the feeling of ‘going out’ of the house will never be the same again after Covid-19 pandemic.

In my case, I am not a medical expert, I am not a government minister, I am not an authority figure like the police, I am not a Muslim scholar or a religious expert and I am not an economic expert that able to make substance opinion for the nation. Yet, we still have our opinion to speak about the Covid-19 pandemic .

Most of us received news and updates, viral through the message’s applications and social media platforms. At times, this information was too overwhelmed and all of us might get a little ‘information overloaded’. Whether these updates can be reliable and important or otherwise, they could be entwined by anyone in different ways. Everyone is trying to be the ‘first person’ to deliver or share any ‘breaking news’ and latest updates which can become personal agenda to certain people.

Currently, most countries have carried out Restriction Movement Order or Movement Control Order (MCO) and Malaysia is one of them. Therefore, we are now left with so much free time to be ‘part-time reporter’ or try a new skill or jobs.

RESTRICTION MOVEMENT ORDER / MOVEMENT CONTROL ORDER

In our country, Malaysia, the Restriction Movement Order encompasses the following restrictions:

1. Total prohibition of movement and mass assembly nationwide and all religious activities are postponed.
2. All educational institution, schools, nurseries and boarding schools must be closed.
3. Malaysians are barred from leaving the country and for those who just came back from overseas will be required to go for health screening and self-quarantine for 14 days.
4. Restrictions placed on entry of non-Malaysians to Malaysia.
5. All government and private industries and places must be closed except for essential services premises.

Movements from one state to another and going out (from the house) to unreasonable places must be reduced to prevent the possibility of spreading the virus. We never expected this kind of catastrophe would happen and probably we did watched the similar events in several movies before. Well, this is the first time the whole world must work together to “fight” the coronavirus.

Initially, panic was everywhere by everyone. Students at boarding schools, local and private higher institutions were alarmed when their schools and colleges needed to be closed. Going back home to parents would definitely the first thought without aware the risk of spreading the disease. Similarly, parents worried about their children’s welfare during this crisis and them back home. This was such a natural feeling.

On the other hand, I totally disagree when many people start doing “panic buying” at all hypermarkets and supermarkets because they were actually buying more than what they really need. We are not at war people! This inconvenience act is unacceptable to other people who only need to get their daily or urgent groceries or necessities at that point of time.

“Panic buying” can also be viewed as a selfish act since those with high purchasing ability can do that impromptu buying while others need to wait for their next pay-check or monthly salary to purchase their necessities. Hence, the need to wait for the supply to be re-stocked.

References from Prime Minister’s Department (JPM)

ESSENTIAL SERVICES

The closure of all premised, shops, government and private offices has given a big impact to the society. The most affected businesses are from the tourism sector and hospitality related businesses.

Essential services stated by the government are those related to health, economy, defense, transportation, fuel, gas and utilities such as water and electricity.

My nature of work in financial sector allows me to work at home via online and I have actually done work-from-home for a few years now. However, there are still few activities that need to put on hold such as business travelling, appointments, training, meetings and social visits with customers and stakeholders.

My work experience in the management and financial sector have made me becoming more ‘news conscious’ and the importance of reliable information. By doing this, I wish that it should improvise my background and updates while doing my job.

During end of 2019 and early 2020, I had conducted short courses and social discussions regarding the world of digital to a group non-IT participant. I presumed that this year, 2020 will be the era of “Digital World” and it will be widely utilized by most industries in order to realize the Industrial Revolution 4.0 (I.R 4.0). Those who wish to be relevant in the future, it could be the innovative platforms.

Unfortunately, those who couldn’t care less, probably will be the one who left behind in many aspects of digital thingy. There are people who already financially stable and feel complacent with their current life would be adopting the “wait and see” thoughts.

On the other hand, there are people who think IT-literate learning is only for generation-Y or Z and it would be complicated for them to learn. However, in my short sharing session I mentioned earlier, they have proven that age didn’t play the major role as learning simple digital or IT related skills is actually very interesting.

It seems like my quick ‘prediction’ kind of came true but in an unfortunate situation during the world is facing the Covid-19 pandemic. The use of online business, zoom meeting, e-classroom schooling, work from home, e-wallet, online transaction, e-commerce shopping and e-food delivery are extensively applying digital platforms and these operators must provide a solid digital or IT team.

MORATORIUM OR MALAYSIAN FINANCIAL ASSISTANCE

Lately, a few customers asked me about moratorium which was mentioned during the crisis.  Moratorium is defined as a temporary suspension of an activity legally, until the issues settle at the agreeable amount and time. Usually, moratorium is implemented by the government of a country or used in businesses.

In Malaysia through the Ministry of Finance, several financial assistance have been announced to help reduce the financial strain of Malaysians who are affected. The loan moratorium is one of them which will be applicable through almost all banks in Malaysia to their affected customers.

Banks will allow the loan installment to be postponed during the crisis period, usually within 3 to 6 months. During the agreeable timeline, customers may postpone or restructure their installments according to their ability without any compounding interest, loan arrears or late payment penalty.

Reference:  Islamic banks involved.

NECESSITY TO APPLY FINANCIAL MORATARIUM

Is it necessary for us to take this opportunity and apply for this moratorium? My answer is simple and clear. The situation depends on individual needs or the sector involved. There are two possibilities that can happen:

1. Those who are in the private sectors which are affected by this crisis and are forced to go for leave without pay, or the salary is deducted by their employers. But this is not going to happen because the government in Malaysia did not allow this to happen and urge all employers are required to pay full salary throughout the quarantine period.
2. Small Medium Enterprise affected by Covid-19 pandemic which are affected and not able to continue their business as usual or need to reduce their business activities.

Let us take a closer look at those who are in situation number 2. These groups are such as small business owners in night markets, morning markets, food stalls, those in tourism sectors, tourism agencies and small contractors.

Those who are not affected as above such as government servants and the essential industries employees do not have to apply for this assistance. Unless, there is huge impact in our financial situation, deferred and restructure loans or financing are not necessary. The reason is because the deferring or restructuring financing plan will extend the existing loan tenor from 10 years up to 12 or 15 years.

Reference from Bank Negara Malaysia.

IMPLICATIONS IN THE WORKING SECTOR

Those who are in the situation number 1 above, they need to think when that their employers need to pay full salary for their staff with much less productivity or no productivity at all even during the quarantine order for possibly 2 or 3 months.

Will the employers be able to sustain the manpower overhead salary until the productivity momentum is back to normal? Employers need to think about other expenses like capital expenditure, bank’s credit facilities and operating expenditure. Contingency plans also need to be implemented to handle this issue.

Will there be a retrenchment, voluntary separation scheme (VSS) or mutual separation scheme (MSS) after this catastrophe? The probability for these to happen could hinge on the employers’ cash flows and financial feasibility during the crisis timeline.

I have experienced being in a committee involved in determining the list of VSS. For me, it is not a simple decision to be made by an organization since several aspects need to be considered analytically and subjectively.

Nevertheless, my hope as well as everyone on earth, wish this nature disruptions will be over and everything will be back to normal or even better than before. Hence, all the effected individuals, businesses, sectors or industries should be able to endure and strive to be more productive and innovative than before. Enhance multi-skills, develop organization capability, be ready to face any shortcoming and never give up.

These views may not be acceptable by everyone; however, each one of us should ponder and consider this disastrous event is a lesson learnt to everyone. Thus, these are only my thoughts based on my total 20 years’ experience in human capability as well as financial sectors and I do not wish to give any further technical comments on financial matters.

THE ‘BLESSING IN DISGUISE’

There is always a silver lining in every cloud, the same goes for this devastation which impacted the whole world. I do feel the nature cannot cope more damages that human have done to themselves anymore. Behind this ‘world level’ health disaster, there are many insights that we could learn from it:

1. The world, regardless countries, races and religions, are required to fight together against the spreading of Covid-19 pandemic which is caused by corona virus. They worked together, to come up with effective steps to control the outbreak. Powerful countries are currently working together developing vaccine for this disease whereas before this, they were competing building powerful weapons.
2. Most countries need to be put aside their fights and wars for this moment to be together fighting the Covid-19 pandemic.
3. In Malaysia itself, the politic issues are never ending but people already tired by the ‘political drama’ and presently, focusing on issues or advantages that could benefits them.
4. Different political ideology among politicians need to be ‘forgotten’ currently (or forever) and to work together to solve the critical health issues faced by every country around the world.
5. Muslims around the world are prohibited to go to the mosques for prayers. Previously, we might intentionally not going for Jemaah prayer in the mosques even for one out of five times prayer. That was because we were so busy with our world affairs.
6. For the first time ever, Masjidil Haram, Masjid Nabawi and Masjidil Aqsa have to be evacuated for cleaning purposes where almost all countries are forbidden to do worship there. There were a few people who made fun of holy places with disgusting and filthy behaviors. This is a reminder for us.
7. We used to have so minimum time with our family. Again, this may be this is the time for us to strengthen our family bonds, cherish the moment we have with the children and spend time with family doing activities together.
8. For Muslims, we can do our Jemaah prayers at home and become the imam for our family. If we never cook before, now we can show our skill as a chef.
9. Bring us close to our Creator and repent our sins. Regret on what mistakes we have done, intentionally or otherwise.

Wallahualam.

Nurin Hamid