How did the MCO worsen low-income households’ finances?

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MCO Exacerbated Financial Hardship for Low-Income Households

The Movement Control Order (MCO) significantly worsened the financial standing of low-income households in Malaysia, leading to widespread inability to save and a substantial reduction in income. These households, already facing pre-existing financial challenges, experienced a dramatic decline in their economic stability during the MCO period.
Widespread Savings Deficit

A substantial three-quarters of low-income households reported being unable to save any money during the MCO. For the minority who did manage to save, only a fifth accumulated enough to cover expenses for more than three months. This precarious situation was even more pronounced for households headed by women, where a mere 5 per cent saved a buffer of over three months.
Significant Income and Spending Reductions

The financial strain was further evidenced by a one-third drop in median salaries during the MCO. Over half of household heads reported a decrease in income compared to the previous year, 2019. Consequently, essential spending also saw drastic cuts, with expenditures on education plummeting by an average of 84 per cent.
Altered Consumption Patterns

Low-income households were compelled to adjust their spending habits, notably by reducing their consumption of essential food items. Both fruit and protein intake were curtailed, impacting the nutritional quality of diets, despite aggregate food expenditures not changing significantly. This shift indicates a move towards less nutrient-dense, potentially cheaper food options to cope with reduced financial resources.

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How did the MCO worsen low-income households’ finances?

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