KUALA LUMPUR: The impact of the Covid-19 pandemic and the nationwide Movement Control Order (MCO) has varied from one business to another.
Some count themselves lucky to be able to keep afloat and are optimistic that their businesses will pick up again in the months ahead, but some fear the worst – that they have to shut down completely due to financial losses.
Citrine One founder and crisis communications lead counsel Ivlynn Yap said while they are currently affected in several ways, they are blessed that their revenues increased just before the MCO, which was enforced on March 18.
“For now, we are able to sustain (the company) until June without pay cuts. However, like all small-medium enterprises (SMEs), we are impacted by the MCO due to late payments, postponement of projects and overall lack of business activity among clients.
“These are inevitable and we have to accept reality. There will be a domino effect post MCO,” Yap told the New Straits Times today.
Yap’s company is a strategic marketing communications and public relations consultancy firm specialising in crisis management. She currently has a staff of 12.
With the work-from-home concept in place, Yap said there are certain savings in terms of operations costs, and she was able to defer paying her office’s March rental to April.
“As we are working from home, there are costs that we foresee will be reduced, which make up about 20 to 30 per cent of our business costs. Staff claims are reduced for mobile phone and internet usage, as well as transportation claims.
“Electricity, water bills and administrative costs are lower, as the office is not used and also the cleaning and purchase of food and snacks in the office are cut,” added Yap.
She said she will seek another rental payment deferment if the extended MCO, which lasts until April 14, is further lengthened by the government, as she believes in creating a win-win in business.
Meanwhile, Paul Hondell, who owns an automotive detailing business, said he has already lost a significant amount of profit as his services in Petaling Jaya were categorised as non-essential and the premises had to be closed.
The extended MCO, which has stretched to a month, has realised the worst for the 47-year-old, as he needs about RM17,000 a month to keep his business afloat.
“My main focus now is to ensure that I do not go into deeper debt and to settle the outstanding (debt) as well as the salaries of my five workers.
“Despite the temporary closure of my premises, I paid their salaries in full for March. For April, it will be slashed to half and I am glad they understand the difficult situation I am in.
“However, finances are tight and if the MCO is extended beyond Apr 14, I am expecting the business to collapse in the worst case scenario. I have informed my workers of that possibility,” said Hondell, who set up the business in 2011.