Road to economic recovery — roles of consumers and business community

THE discussion about Covid-19 doesn’t revolve around health and medical perspectives alone. The domino effect of the pandemic has affected our daily lives tremendously. The spread of this pandemic has brought many changes on the way of life of the people, forcing them to adapt to new norms that include aspects of personal hygiene, social distancing, financial management, and socioeconomic landscape. In addition, the spread of Covid-19 has also affected the world economy and our country Malaysia is no exception. Economic activity was severely affected when the Movement Control Order (MCO) was implemented on March 18, followed by the Enhanced Movement Control Order (EMCO) in several areas, the Conditional Movement Control Order (CMCO), and the Recovery Movement Control Order (RMCO). Entrepreneurs and traders have no choice but to comply with the government’s directives to stop business activities which were deemed as non-essential at that point of time. However, the adherence of Malaysians to the standard operating procedures (SOPs) has started to show a positive effect with a decrease in the rate of infection. RMCO was implemented after cases of Covid-19 infection were within control. Thus, economic recovery activities started to take the front seat and became the main focus of the country, with the involvement of the government, business community, and the community of buyers and consumers. The retail sector is seen as one of the business sectors that is in great need of revival, following the decline in the wholesale and retail trade index to -6.1 per cent in March, compared to 5.4 per cent in February based on the 2020 Quarterly Economic Performance report released by Bank Negara Malaysia and the Department Statistics of Malaysia. The same contraction was also felt by supermarket operators, which declined by up to 41 per cent, while shopping malls experienced a decline of up to 63 per cent. During the tabling of the National Economic Recovery Plan (Penjana) on June 5, the Prime Minister recognised the importance of the retail industry with an allocation of RM20 million for the Kempen Beli Barangan Malaysia (KBBM). I am very honoured that the Prime Minister has given the trust and responsibility to the Ministry of Domestic Trade and Consumer Affairs (KPDNHEP) to implement KBBM, which was first introduced in 2009. KBBM was launched simultaneously with the Program Jualan Malaysia ( PJM) by the Prime Minister on July 18 at KLCC. Both campaigns are comprehensive initiatives to revive and boost the retail sector in the country. The implementation of these campaigns is further supported through the involvement of various associations including the Malaysian Retailers Association (MRA), Malaysian Franchise Association (MFA), Malaysian Complex Management Association (PPK), The National Tech Association of Malaysia (Pikom), Tourism Malaysia, and other relevant ministries. I am blessed and grateful to have such good cooperation and support from all parties involved in these campaigns. This will be replicated in all states throughout the country involving shopping complexes, hypermarkets, and even online sales marketplace until the end of the year. However, this effort will not be successful if Malaysians, as buyers and consumers, do not echo and support these campaigns. Keynesian economic theory says that the government should stimulate spending to end the recession. Consumers have to respond by spending as this is one of the driving factors to improve the country’s economy. Many enterprises and businesses will go bankrupt and workers will lose their source of income if the retail industry cannot be revived. The economy will then depend entirely on export activities, in the hope that other countries will import our goods. But if all countries suffer from economic uncertainties due to Covid-19 as well, export activity will also be affected as what can be seen now, and this could cripple the entire world economic system. However, the effect can be reversed when consumers spend; demand will increase and companies will increase their production to meet demand. This in turn will create more job opportunities and the salary received can encourage further spending activities. This is an economic cycle that needs to be encouraged to revive the overall economy. To strike a balance between welfare and cost of living, the government has provided various incentives or concessions to the people through moratorium facilities by banking institutions for housing, vehicle, and personal loans to ease the burden of the people following the recent implementation of the MCO. At least this has given some relief and increased purchasing power to spend among the people. The economy can be stimulated when people use these incentives or assistance to spend and not to save. Please spend and shop! Whether you go to the malls or online, the money spent will help to create jobs, pay salaries, produce new products, and so on. This can help grow and revive the country’s domestic economy faster. Whether having coffee at cafes, teh tarik at mamak stalls with friends, shopping with family, or cuti- cuti Malaysia, all these activities will help regenerate the country’s economy. I believe the people have started to get used to the new norms by complying with the prescribed SOPs. I myself have gone down to the field and seen for myself how business premises have taken security measures for the good and well-being of all. # kitajagakita and #staysafe are not just in terms of health aspects but also for the economy. If we Malaysians do not play our roles and help to raise our own economy, who will? It may take a while before we can open our doors to foreign tourists. In the past, the Year End Sales or YES was held to draw tourists’ interest to spend in our country, but now KBBM and PJM are held especially for Malaysians. Both campaigns will be implemented for six months from July to December 2020 with different themes each month. ICT and gadgets was in July, fashion and clothing for August, furniture and home appliances in September, sports and lifestyle for October in conjunction with National Sports month, and Back to School in December. I really hope Malaysians of all walks of life will support these campaigns. Traders and retailers have made full commitment to participate in this campaign by offering a wide range of products at attractive prices. Let’s celebrate our National Day this year in style and colours, while observing the new norms and SOPs. To support our own brands and products is also a manifestation of our independence. This is the time to show and prove our love and patriotism to our beloved country. Spend for Malaysia and together revive our economy. Give preference and a special place to our own brands and products when you and your family go shopping, either at malls or online.