Impact of COVID-19 on Malaysian Economy: A Study of Consumer Product Manufacturing Firms

Abstract

The challenge facing the world in recent times is the deadly infectious disease caused by severe acute respiratory syndrome coronavirus 2 (SARS-CoV-2), now referred to as COVID-19. The disease does affect not only human health but also disrupt economic activities due to partial lockdown and social distancing measures taken to curb the spread of the disease. Hence, the research goal for this paper is to study the impact of COVID-19 on the Malaysian economy concerning consumer product manufacturing firms. Primary data were collected using a structured questionnaire distributed to the marketing managers, distributors, wholesale managers, and retailers of consumer products. The data collected were analyzed using Statistical Package for Social Science (SPSS). Respondents strongly agree with the following: COVID-19 pandemic adversely affected the Malaysian economy; substantial production disruptions emerged as a result of forced business closures and workers' inability to get to work; COVID-19 lockdown drastically reduced the consumption pattern in Malaysia; panic among consumers and firms distorted usual consumption patterns and created market anomalies. In short, Malaysia's economy has been badly affected by the impact of the COVID-19 pandemic. The policymakers, via legislation, may create a robust economic recovery welfare safety net for all citizens, particularly for citizens who lost their jobs, especially those from poor households and build appropriate digital infrastructure. A future study is suggested to investigate the impact of COVID-19 on Malaysia's economy based on aggregate data.

Keywords: Malaysian economy, COVID-19, consumer product manufacturing firms.

https://doi.org/10.55463/issn.1674-2974.49.1.37