New online economy to emerge post-mco
There will also be rewriting of social rules, says research firm
PETALING JAYA: Three macro trends will emerge post movement control order (MCO) that will create a significant impact on the country, its people and the economy, according to M&C Saatchi’s consumer insights and research company The Source.
The company’s latest report said while some changes would remain and others would ease, the three main macro trends post MCO are the acceleration of online, rewriting of social rules and increased accountability.
Responding to queries from Starbiz pertaining to these trends, the company said: “The shutdown of workplaces, schools, outdoor facilities and travel has heightened the need to open up to the Internet and depend on its infrastructure for communications and productivity.
“As a country that is extremely social and communal in nature, Malaysia will be forced to adopt new social rules of hygiene and distancing well past the MCO period.
Lastly, governments, businesses and individuals will be more responsible in doing the right thing as their actions will be scrutinised by the general public closely.
While these trends are in line with the changes observed across the globe, The Source added they would have a dramatic impact on businesses, individuals and the economy in expediting changes that would have otherwise taken place over the next five years.
Commenting on the trends, Dan Harrow, managing partner at The Source, Malaysia added: “The pandemic and the resulting lockdown is reframing the world and acting as a positive force in Malaysia.
“It will accelerate changes towards creating a new online economy, building a safer and hygiene-conscious country.
“It will also increase a sense of responsibility by the government, businesses and individuals who will make collective efforts to protect the country and the environment by reducing the impact on their friends, family, colleagues and fellow Malaysians.”
The report also highlighted that this would be a critical time for brands to be in constant communication with their consumers and show how they are managing the crisis, when they would reopen, how they aim to manage the health and safety of their customers and how they would reward their loyalty post MCO.
Brands would have to cope with a lower propensity to spend and an increased focus on managing personal finances.
Online banking, it said, would play an important role for financial management while visits to a physical store would be decreased. MCO has already spearheaded the pivot to e-commerce, the company noted.
In terms of entertainment, The Source said out-of-home activities such as dining, mall experiences, gyms and nightlife would come with its own rules such as wearing masks, temperature checks and social distancing.
“Entertainment as a whole will therefore have a staggered return to normalcy based on its perceived risk level.
“Instead, Malaysians will replace these experiences with safer alternatives such as cooking at home, entertaining friends and family, at-home workouts, online shopping, and streaming.
The company said as tourism is an important sector of Malaysia’s economy, most Malaysians would likely delay travelling for as long as they could.
“To rebuild trust, travel companies can position themselves as a connector and protector of families and loved ones by assuring tourists of the high levels of hygiene, health checks, social distancing, contactless transactions and other procedures implemented, particularly for domestic and cross-border travel,” the report added.
On the economic front, the report said Covid-19 would encourage Malaysia to be more reliant on local stores, local produce, local employers, local travel and local businesses.
“Messaging should focus on buying Malaysian brands and products to help stimulate economic recovery and jobs, cheaper and healthier ingredients from locally trusted sources, and driving greater appreciation for what Malaysia has to offer,” the report noted.
The report was developed via qualitative research with a representative sample of 30 Malaysians (50% M40 & 50% B40), exploring attitudes and needs during MCO and how these would continue or evolve once the conditional MCO is relaxed, and then beyond this towards an improved, post-mco Malaysia.