Impact

 The Impact of Pandemic Covid-19 on Societies' Economic.

The societies’ economy began to decline during the beginning of Movement Order Control(MCO). It is because people cannot go out of the  house except they need to buy necessary needs and goods. And most of the people don’t have work because companies or business premises cannot operate during MCO. So, the consumers, workers, business owners struggle in this MCO. For the following months,  Condition Movement Control Order (CMCO) and Recovery Movement Order (RMCO) are conducted.

Although the rules of CMCO and RMCO allowed certain companies and businesses to be open for customer service , the societies’ economics are also affected, because some people are willing to go out from home due to the rising cases or unstable coronavirus cases in our country. If there is less consumption, there is no great income for the business owner.

Let us go through how pandemic covid-19 affects some types of sector’s economics.👍👍

Impact on Manufacturing Industries :

             

The implementation of the Movement Control Order (MCO) has indirectly had an impact on the Manufacturing industries in Malaysia. Some sectors in manufacturing are allowed to continue operations throughout the MCO with the approval of MITI i.e. food and beverages, household products, medical and so on. 

The economy in Malaysia declines because almost all the industries and business premises cannot operate during pandemic Covid-19 due to the MCO. Closure of operations means no income for them. It will be a big trouble to the big industries, because they have lots of workers to feed. They might need to pay salaries to the workers, although the industries are not on their business. Some of the companies lay off their employees in order to reduce the overhead. This causes most of the people to lose their job and make them have no income during this period. As a result, the unemployment rate increases. Worst of all, small industries are bankrupt in this MCO too because they didn’t earn any profit. People who work as workers are very struggling because they have no much income  to get through these difficulties.

Impact on Tourism Sector :

                                                      

Pandemic Covid-19 has also  strongly affected the tourism sectors too. Due to lock down, there are no tourists allowed and the tourist attraction is forced to lockdown in order to control the spreading of virus. Travelers will be forced to delay their trips and cancel hotel and flight reservations, which will be a significant loss for Malaysia, which was named the third most popular Asian travel destination in 2018. As a result, the country's Gross Domestic Product (GDP) would be lower since less products and services will be made. As we know that locals business are affected because their income mostly comes from tourists. the local hawkers, sellers and premises cannot sell their food, things and service if there are no tourists. they will earn less or even no earning during this pandemic.

At the same time ,the airline sectors also faced  a challenge during this pandemic Covid-19.The International Air Transport Association (IATA) expects 250,000 worked in the aviation sector, including the pilots, stewards, aircraft engineers, aircraft technicians. They are forced to lay off or even worse, some will be unemployed. Among the airlines in Malaysia affected by this pandemic is Air Asia. That company recorded a net loss of RM992.89 million and plunged 96% to RM118.96 million in the second quarter ended June 30, 2020. This is because the movement control orders(MCO) are tightened and a ban on leaving the country to avoid the covid-19 infectious disease from spreading widely in the country and can indirectly threaten national security.

Impact on Societies' Burden :

  

   

During MCO, everyone are encouraged to stay at home to prevent the spread of coronavirus. Thus, this causes the family expenses to increase because all the family members are staying at home. Some people who were suspended without pay were forced to use their savings to meet daily expenses. But not many families can get through this long MCO and this pandemic successfully due to their little savings. In spite of that, our Ministry of Education, Dr Mohd Radzi Md Jidin had made an early decision to postpone all schools and extra-curricular activities in March 2020. According to his announcement, all the physical face-to-face studying mode was changed to online studying mode. Students should study at home to minimize the physical contact in the school in order to stop the spread of coronavirus. Due to studying at home, students required the internet data plan and device for online study. Thus, this gradually increases the financial burden of low-income families.. They have to deal with the increased expenses and their children's education expenses.

REFERENCE :

1. Dr. Mariam Othman. (9 April 2020). The effects of the COVID-19 pandemic on one’s enjoyment of the right to education. Retrieved on 30th April 2021, from: https://shapesea.com/op-ed/covid-19/the-effects-of-the-covid-19-pandemic-on-ones-enjoyment-of-the-right-to-education/

2. https://www.nottingham.edu.my/Economics/documents/2020/consolation-2.pdf

3. World Health Organization (2020). Coronavirus disease (COVID-19) in Malaysia. Retrieved on 22nd April 2021, from: https://www.who.int/malaysia/emergencies/covid-19-in-malaysia

4. Shereen, M. A., Khan, S., Kazmi, A., Bashir, N. & Siddique, R. (2020). COVID-19 infection: Origin, transmission, and characteristics of human coronaviruses. Retrieved on 22nd April 2021, from: https://www.journals.elsevier.com/journal-of-advanced-research

5. Liew Kwan Jet. (29 April 2020). How COVID-19 Affects The Malaysian Economy. Retrieved on 23th April 2021, from: https://college.taylors.edu.my/en/life-at-taylors/news-events/news/how-covid-19-affects-the-malaysian-economy.html

Prepared by : Azrai, Deneil Ikhwam & Faiz Helmi