What were the main economic impacts of the MCO on Malaysian businesses?

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The Movement Control Order Led to Significant Economic Losses Across Multiple Sectors in Malaysia

The initial implementation of the Movement Control Order (MCO) starting March 18, 2020, resulted in substantial economic and business losses across various industries in the first quarter of the year. Data collected by the Department of Statistics Malaysia (DOSM) from field officers highlighted widespread disruption and revenue decline in states such as Johor, Melaka, Negri Sembilan, and Sarawak. These impacts were a direct consequence of operational restrictions, reduced capacity, and the inability of many businesses to function as usual.
Johor Experienced Severe Declines in Retail and Manufacturing

In Johor, the retail sale of telecommunications equipment saw a significant drop ranging from 60 to 70 per cent, largely due to businesses being unable to operate. The manufacturing sector also faced considerable challenges, with the paint-making industry projected to lose up to 60 per cent of its business by the second quarter. Additionally, the wood and rattan furniture industry was expected to experience a loss of up to 38 per cent in the first quarter, while the printing industry could face revenue losses amounting to RM1.5 million. The pharmaceutical sector in Johor reported losses of RM9 million since the MCO commenced.
Melaka's Retail and Automotive Sectors Suffered Steep Losses

Melaka witnessed severe impacts across its retail and service industries. The retail shoe sector experienced revenue losses between 50 and 90 per cent. Bridal services were particularly hard-hit, recording a 75 per cent drop in revenue in March alone as bookings were cancelled. Restaurants and eateries across the state, numbering 1,332 registered establishments, saw their sales decline by 80 per cent in March, with some reporting minimal customer traffic. The motorised vehicle manufacturing industry, a significant contributor to Melaka's manufacturing output, estimated a 50 to 60 per cent decrease in sales during March.
Negri Sembilan Faced Halved Sales and Reduced Output

In Negri Sembilan, the chemical and chemical products manufacturing industry, including producers of fertilisers, print ink, soap, and cleaning materials, experienced nearly halved sales. This reduction was attributed to shortened operational hours, a 50 per cent decrease in output capacity, and the implementation of rotational work systems for employees. The wholesale services for the waste and scrap industry anticipated revenue losses of up to 30 per cent, while the rubber scrap industry was projected to lose as much as 75 per cent of its revenue. The glass manufacturing and non-metallic mining industry, which was not permitted to operate, faced a 30 per cent reduction in output.
Sarawak's Essential Services and Automotive Repair Impacted

Even businesses that were allowed to operate in Sarawak, such as groceries, cold storage facilities, convenience stores, gas stations, and supermarkets, reported an estimated 50 per cent drop in sales. These businesses also contended with reduced stock availability and a smaller workforce. Vehicle repair services, including those for motorcycles, were also significantly affected, with some workshops only able to operate through direct arrangements with vehicle owners due to restrictions.

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What were the main economic impacts of the MCO on Malaysian businesses?

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