Which businesses were most impacted by 2021 restrictions?

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Businesses Most Affected by 2021 Restrictions

In 2021, many businesses, particularly small and micro enterprises, experienced significant impacts due to the prolonged pandemic and the implementation of various restrictions in high-risk areas. These measures, enacted to control the spread of Covid-19, directly affected the operational capacity and revenue streams of these businesses. The Chief Statistician, Datuk Seri Dr Mohd Uzir Mahidin, noted this widespread impact in his statement regarding the Statistics of Labour Force, Malaysia, 2021 report.
Impact on Small and Micro Enterprises

The primary group of businesses identified as being most affected by the 2021 restrictions were small and micro enterprises. These entities often have fewer resources and a more limited capacity to absorb economic shocks compared to larger corporations. The restrictions, which varied across selected high-risk zones, likely disrupted supply chains, reduced customer footfall, and curtailed operational hours, leading to financial strain.
Broader Economic Context of 2021

The year 2021 saw Malaysia's labour market indicating a gradual recovery, with the overall labour force increasing to 15.8 million persons. The number of employed persons also rose to 15.1 million. This recovery was partly attributed to the reopening of economic and social activities as the nation transitioned through the National Recovery Plan. However, the impact on small and micro enterprises highlights the uneven nature of this recovery, with certain business segments facing considerable challenges.
Labour Force Composition in 2021

During 2021, the employed population was predominantly composed of semi-skilled workers, constituting 57.7% or 8.7 million individuals. Skilled workers made up 29.6% (4.5 million), and low-skilled workers accounted for 12.7% (1.9 million). Employees represented the largest segment of the employed at 78.5%, showing a slight increase. Conversely, own-account workers, who comprise 14.8% of the employed, saw a decline to 2.2 million persons, reflecting some of the broader economic pressures.

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Which businesses were most impacted by 2021 restrictions?

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