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The Malaysia Retailers Association (MRA), in line with the extended Movement Control Order (MCO) from 31 March 2020 to 14 April 2020 as announced by our honourable Prime Minister of Malaysia, YAB Tan Sri Dato’ Hj. Muhyiddin Bin Hj. Mohd. Yassin, would like to assure YAB Tan Sri that we, the retailers shall abide, obey and follow the Government directives and order, not only as a corporate citizen but as a responsible individual citizen as well.We recognise that we continue to have responsibilities towards our customers and suppliers, and will therefore, do our best in these extraordinary circumstances.
We will continue to monitor any developments closely in line with the evolving situation.
Nonetheless, the well-being of our employees, as well as their families, our business associates, and communities around us are of utmost priority as we navigate through these challenging and uncertain times.
However, we would also like to highlight and reiterate here that since the first announcement of the MCO, the retail industry and our members had been greatly and gravely impacted.
Sales dropped by as high as 60% in February 2020, and we envisage a 90% drop in March 2020, due to the lockdown.
Many retail businesses are in dire condition and desperately need help, more so with the extension of the MCO for a further 14 days.
The big questions are “How are businesses going to survive? How are retailers going to pay rental? How are employers going to pay staff salaries?”.
During the Global Financial Crisis, the problem was with a decreasing asset-values and increasing risks and that has triggered a systemic problem.
However, with COVID-19, the contraction of economy by deliberate Government actions (done consciously, intentionally and necessarily) around the world has triggered a cash flow problem.
Therefore, if this issue is not tackled as soon as possible, it will trigger a depression of asset values, income and further contraction of the economy.
Some retailers and shops may not reopen after 14 April 2020 due to limited resources, with no revenue during this MCO period but having loads of expenses to pay ie. the bulk of which are salary, rental and payment to statutory contributions.
There will be retrenchment of staff and layoffs. So cash flow is paramount.
Businesses need a sharp recovery when COVID-19 is defeated.
To do this, Government have to support businesses and workers financially, and shopping malls’ owner have to give free rental during MCO and some rental rebates thereafter, so that the rebound can be rapid as the structure of the economy (liquidity, businesses & jobs) remains intact.
THREE (3) KEY WORDS - Speed, Liquidity & Jobs, we can’t seem to stress this enough.
Quick recovery would mean that businesses can pay back the financing taken to do what we are doing now.
The economy cannot recover quickly if companies start to fold and jobs are lost.
In this scenario, even when COVID-19 is defeated, the recovery will be slow and painful.
We appeal to the Government to show that you are behind us - the businesses.
Then only can the businesses stand behind their workers, and in return, the workers can then do their part in this struggle.
Further, we appeal to the Malaysian Government to be generous and to be unprecedentedly “creative” with your support programme.
Your generosity will help support businesses to show more kindness to their staff.
The staff will then be able to carry out acts of kindness, however big or small, to society. We need a stimulus package on steroids.
We can then altogether, overcome and recover quickly.
Everyone needs to do their part and show sincere kindness in making sacrifices - financial support schemes and measures from Government, all commercial landlords and shopping malls to give free rental during the MCO period and last but not least, in combating the COVID-19 outbreak, Government to ensure a well-run health system and that medicines are in adequate supply and sufficient for all Malaysian to obtain the health services they need, without suffering financial hardship.
We want to do our part. The Government needs to stand behind us so that we can do more. And we need it now.
President & Council Members
of Malaysia Retailers Association (MRA)
Kuala Lumpur, 25 March 2020
MIER Press Statement - The Economic Impacts of COVID-19
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