Kuala Lumpur, 6 May 2020 – Cent GPS Research did an online survey during MCO phases 1 & 2 on the Malaysian household financial wellbeing and spending pattern under the Movement Control Order. The online survey was participated by 733 respondents, of which 54.3% are females, 43.5% are males, and the remaining 2.2% prefer not to be identified.
The survey which was conducted throughout the implementation of the MCO during the first two phases gave us several insights. Firstly, 30% of our respondents are without income during the movement control order. This indicates that while they can adapt during the first two phases of the MCO, their finances may be stretched and under strain as the MCO is being extended.
Secondly, almost the same amount of respondents also stated that their finances can only last for a month, with another 44% only having savings that would last them between one to three months. Therefore, 74% of the respondents cannot last more than 4 months. Here lies the challenge for both the government and the revitalization of the economy, whether businesses and individuals would have the capacity to normalize their cash flow post-MCO and how long it would take to do that.
While many talked about the challenges companies and businesses will face reviving their operations, the problem may lie in the market itself as people may cut spending post-MCO to stabilize their savings. With the shrinking of household expendable income, from those who are without any income during the MCO and for those who would try to make up for their reduction of savings, the public is looking to the government to provide them with some form of stimulus.
As per our survey, 86% of the respondents strongly agreed that the MCO is necessary. Besides that, the expectation to the government is very high, although this survey was taken on the earlier phases of the MCO, a 70% positive rating that the government can revitalize the economy is quite a significant expectation. Thus, a clear, concise and detailed plan needs to be panned out throughout the months post-MCO for the revival of the Malaysian economy to store confidence to industries, businesses and consumers.
Another interesting note from our survey is that the findings on those that do online shopping, the findings are equally distributed between those residing within and outside of Klang Valley with quite a chuck coming from Sabah and Sarawak. Perhaps the good news in all of these is that the MCO catalyzes for Malaysian consumers to adopt online practices mainly in regards to the procurement of goods.
While it is understood that a complete order of normalcy is not a good option to eradicate the spread of Covid-19 entirely, there needs to be a gradual and systematic implementation in restarting the economy even before the deadline of the MCO. Perhaps more than just a simple stimulus package or cash injection. The government and businesses may have to rethink the way the economy will work under this new situation.
Cent- GPS is a KL based political science and social-behavioral research firm. Launched in 2015, we aim to “make research relevant” which means delivering local research in a medium that is attainable and comprehensible for all.
