The Implications of Covid-19 Pandemic on Consumer Burden in Malaysia: An Analysis

Abstract

The effects of Covid-19 are continuing to increase around the world as the pandemic claims millions of lives. Malaysia is no exception and has been remarkably affected by the pandemic. Apart from the number of people who are or have been infected with this virus, millions of people are directly or indirectly facing many challenges to their living. The challenges include increased cost of living, income reduction or losses, decreased purchasing power, and unemployment, along with other societal issues created by the pandemic. This study contextualised the implications of the pandemic on consumers’ burden in Malaysia, focusing on the cost of living and unemployment. Observations on prices, inflation, and unemployment rates were conducted to provide meaningful evidence. Major findings revealed that the cost of living has risen, contributed by the increase in prices, especially for food items, healthcare, and education. The unemployment rate also expanded due to the lockdown measures, which led to income losses and reduction. The Covid-19 pandemic has brought challenges to the consumers as measures taken to curb the pandemic have altered many aspects of life and increased the consumers’ burden. Although the inflation rate remains manageable, a major concern lies in many people’s income reduction or income losses. This study implies that the government, together with private institutions and NGOs, needs to work hand in hand to minimise the consumers’ financial burden, especially during this pandemic. It is hoped that the discussion presented in this paper would shed light on the impact of the pandemic on consumers’ burden in Malaysia.