Economic Challenges on Micro Enterprise Contractors In Surviving Covid-19 Pandemic’s Effects
Keywords:
Economic Challenges, Covid-19 Effects, Micro Entreprise, Construction IndustryAbstract
The outbreak of Covid-19 pandemic has disrupted the global economy, leading Malaysia's economy to suffer. Since the start of lockdown, numerous construction companies have suffered in maintaining their financial business especially for micro business since they are financially fragile in contrast to large business. Hence, this study aims to investigate the economic challenges effected by Covid-19 towards micro enterprise contractor’s survival. This study adopted mix method approach which is quantitative data and qualitative data. Both collection of data were handled via online medium to avoid the spread of Covid-19 virus. Financial issues factor, cost implication, and financial mitigation are the major variable variables that observed in the survey. This is based on a financial issue factors, which includes implementation of movement control order, standard operating procedure, material construction price increases, payment issues, and client-related factors. As the results the implementation of movement control order, increase price of construction material, new standard operation procedure, payment issue and client related factor has effected the most on the financial issues sides meanwhile on cost implication sides, the cost overrun has effectedmicro entreprise during pandemic. Results on financial mitigation were obtained to mitigate the impact of Covid-19, with the results indicating that invoking force majeure, government financial aid, joint venture plans, company termination, and risk sharing can help micro enterprises cope with the difficulty. Therefore, this helps micro enterprise to survive the economic impact and understand the challenges of the pandemic by adopting an effective strategy that will help improve the financial company management.
References
Afizah. A. (2021). Covid-19: Impact and Responses in Malaysian Construction Sector. Retrieve from https://www.bernama.com/en/thoughts/news.php?id=1992948.
Bartz, W., & Winkler, A. (2016). Flexible or Fragile? The Growth Performance of Small and Young Businesses During the Global Financial Crisis — Evidence from Germany. Journal of Business Venturing, 31(2), 196–215.
C.Cheng. (2020). Covid-19 in Malaysia: Economic Impacts & Fiscal Responses. Retrieve from https://www.isis.org.my/2020/03/26/covid-19-in-malaysia-economic-impacts-fiscal-responses/.
Che Omar, A. R., Ishak, S., & Jusoh, M. A. (2020). The Impact of Covid-19 Movement Control Order on SMEs’ Businesses and Survival Strategies. Malaysian Journal of Society and Space, 16(2), 139–150. https://doi.org/10.17576/geo-2020-160211.
Department of Statistics Malaysia. (2021). Malaysia Economic Performance Fourth Quarter 2020. Retrieve from https://www.dosm.gov.my/v1/index.php.
Farah S. I, Muneera E, Ernawati M. K. (2020). Covid-19 Pandemic Lockdown: The Consequences Towards Project Success in Malaysian Construction Industry. Advance in Science Technology and Engineering System Journal Vol 5 No 5, ISSN 973-983.
Hansen S, (2020). Does the Covid-19 Outbreak Constitute a Force Majeure Evnt? A Pandemic Impact on Construction Contracts. Journal of Civil Engineering Forum. Vol 6 No 2 ISSN: 201-214.
Holland & A. Knight. (2020). A Look at Covid-19 Impacts on the Construction Industry. Retrieve from https://www.hklaw.com/en/insights/publications/2020/05/a-look-at-covid19-impacts-on-the-construction-industry.
Kassim, Salina & Lai, P C & Hamdan, Nur. (2021). The Covid-19 Pandemic Crisis on Micro-Entrepreneurs In Malaysia: Impact and Mitigation Approaches. 7. 52-64.
Liew. (2021). Liquidated Damages. Retrieve from https://www.pinsentmasons.com/out-law/guides/liquidated-damages.
N. H. Abdullah. (2020a). Kesiapsiagaan dan Respons KKM dalam Menghadapi Potensi Penularan Novel Coronavirus, Wuhan, China [Press release]. Retrieved from http://www.moh.gov.my/index.php/database_stores/store_view_page/21/1296
N. H. Abdullah. (2020b). Tindakan KKM Bagi Pengesanan Kontak (Contact Tracing) Kepada Kes Pertama Positif Novel Coronavirus di Negara Singapura [Press realease]. Retrieved from http://www.moh.gov.my/index.php/database_stores/store_view_page/21/1300.
Spear, T. (2014). Five Types of Strategic Partneership Agreements to Help Grow Your Business. Retrieved from https://blog.pandadoc.com/strategic-partnership-agreement/.
The Straits Times. (2020). Malaysia’s Construction Industry Records $6b Losses in First Three Lockdown Phases. Retrieved on September, 22, 2020, from https://www.straitstimes.com/asia/se-asia/malaysias-construction-industry-records-s6-bil-losses-in-first-three-lockdown-phases.
Vasileiou, K., Barnett, J., Thorpe, S. et al. (2018). Characterising and Justifying Sample Size Sufficiency in Interview-Based Studies: Systematic Analysis of Qualitative Health Research Over a 15-year Period. BMC Med Res Methodol, 18, 148 https://doi.org/10.1186/s12874-018-0594-7.
Zamani, S. H., Rahman, R. A., Fauzi, M. A., & Yusof, L. M. (2021, February). Effect of Covid-19 on Building Construction Projects: Impact and Response Mechanisms. In IOP Conference Series: Earth and Environmental Science (Vol. 682, No. 1, p. 012049). IOP Publishing.
Zazali, M. (2020). Hike in Building Material Price Cause for Worry. Retrieve from https://www.thestar.com.my/metro/metro-news/2021/05/25/hike-in-building-material-prices-cause-for-worry.
Zhang, S. (2021). Limited Risk Sharing and International Equity Returns. The Journal of Finance, 76: 893-933. https://doi.org/10.1111/jofi.12994.
Downloads
Published
How to Cite
Issue
Section
License
Copyright (c) 2024 Norsyakilah Romeli, Nur Izzati Nazifa Husni, Faridah Muhamad Halil, Muhammad Aizat Afiq Abd Ghapar, Jacqueline Wena Dhelbi
This work is licensed under a Creative Commons Attribution 4.0 International License.
