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Group Assignment: Microeconomics 1 (Bt10203)

This document is a group assignment report for a Microeconomics course at University Malaysia Sabah. It investigates the impact of Malaysia's Movement Control Order (MCO) on sellers and buyers during the COVID-19 pandemic. The report collected data through surveys of 6 respondents divided into sellers and buyers. It analyzes the respondents' demographic profiles and survey results on the effects of MCO. Key findings are that over 66% of respondents were between 20-39 years old and female, and MCO significantly impacted the economy but also increased safety awareness.

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0% found this document useful (0 votes)
411 views25 pages

Group Assignment: Microeconomics 1 (Bt10203)

This document is a group assignment report for a Microeconomics course at University Malaysia Sabah. It investigates the impact of Malaysia's Movement Control Order (MCO) on sellers and buyers during the COVID-19 pandemic. The report collected data through surveys of 6 respondents divided into sellers and buyers. It analyzes the respondents' demographic profiles and survey results on the effects of MCO. Key findings are that over 66% of respondents were between 20-39 years old and female, and MCO significantly impacted the economy but also increased safety awareness.

Uploaded by

Evan Yap
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Download as PDF, TXT or read online on Scribd
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FACULTY OF BUSINESS, ECONOMICS AND ACCOUNTANCY

UNIVERSITI MALAYSIA SABAH

MICROECONOMICS 1 (BT10203)
SEMESTER 2, 2020/2021
SECTION 3

GROUP ASSIGNMENT
PREPARED TO:

ASSOCIATE PROFESSOR DR. CAROLINE GEETHA

Hereby, we declare that the work contained in this assignment


is our own, except where acknowledgement of sources is
made.

PREPARED BY:
No. Name Matric No. Signature
1 MOHD IKMAL BIN SURIYA DARMA BB20161006 ikmels
2 MOHD NAZREEN BIN SLAIMAN BB20161068 nazreeNs
3 MU JUNLONG BB20170044 Junlong
4 MUHAMMAD AHMAD ZARRIQ BIN BUSMAN BB20161058 zarr
5 MUHAMMAD AIZZAD BIN MARUF BB20110279 ayjads
6 YAP YI MUN EVAN BB20160943 Evan

SUBMISSION DATE: __30/05/2021__


Table of Contents

Bil. Details Pages


1 1.0 Introduction 1-2

2 2.0 Respondents’ Profiles (Descriptive Demography)


2.1 Demography Respondent by Age
2.2 Demography Respondent by Gender
2.3 Demography Respondent by Race
2.4 Demography Respondent by Marital Status 3-7
2.5 Demography Respondent by No of Dependent
2.6 Demography Respondent for Household Income for
A Month
2.7 Demography Respondent by Level of Education

3 3.0 Survey Results


3.1 Seller 8 - 10
3.2 Buyer 11 - 14

4 4.0 Recommendation/Discussion 15 - 16

5 5.0 Conclusion 17 - 18

6 References I

7 Appendix Ⅱ-Ⅴ
1.0 Introduction

We are the students from University Malaysia Sabah and this will be a group project for
our Microeconomics course (BT10203) in the semester 2, 2020/2021 session. During the
Covid-19 pandemic in Malaysia, the government of Malaysia issued a Movement Control Order
(MCO). In order to control the epidemic, reducing the frequency of people's exposure. The
Malaysian government has introduced this policy to end this disaster as soon as possible. The
government adjusts the details of the MCO based on the number of cases of infection. Our
main purpose was to investigate the impact of MCO on sellers and buyers during the pandemic
crisis of Covid-19. Their survey responses were used to estimate the impact of MCO on the
economy. In addition, we need to collect, analyze and collate the data from a microeconomic
perspective to draw a preliminary conclusion about the economic impact of MCO on sellers
and buyers. This article will describe how the lives of people (buyers and sellers) changed
during the MCO era. Through the way of questionnaire survey, this paper studies the influence
of different economic groups on management cost.

We collected the data and information by the respondents from Whatsapp texting and
video meeting. We divided the respondents into two groups, that is, sellers and buyers.
Different groups set the different questions. The interview questions were selected after the
detailed discussion in order to ensure that we can achieve our goals. We will summarize and
discuss the interview in order to optimize our interview. According to the data that released
by the central bank of Malaysia, the country's GDP in the fourth quarter of 2020 fell by 3.4%
year on year, and the GDP for the whole year fell by 5.6% compared with the previous year,
the biggest drop since the Asian financial crisis in 1998. At the same time, Malaysia's central
bank said that the fourth-quarter GDP decline was greater than the contraction in the third
quarter, mainly due to the implementation of epidemic prevention and control measures in
some areas since last October to control the spread of the epidemic, known as MCO. Travelling
will be restricted, causing the economy to shrink sharply in the fourth quarter. In the
meanwhile, Malaysia's central bank believes that the government's implementation of stricter
epidemic control measures from mid-January 2021 will have a certain extent of impact on the
economy, but the extent of impact is relatively limited and is expected to improve from the
second quarter of 2021. From the above data, we can know that MCO has a substantial impact
on the economy. We will explain what kind of economic impact MCO has on different groups
of people. From what aspects has produced the most direct impact on the economy.

We want to understand what means people use to get through MCO, and we can
economically isolate the three units that interact during MCO. Families, companies, and
governments. When we look at the family as a whole, there is no doubt that in these three
parties, the family must be the consumer. A company is a manufacturer, generating economic
revenue by producing goods and selling services. Households spend their income on goods
and services. The government will raise money for public welfare through taxation and other
means. The government will implement a series of laws to help people through the MCO
period and will also help people. The goal of the government must be to improve the standard
of living and benefit the people. The relationship between the three parties is delicate and

1
mutually essential. Our investigations are supplemented by an analysis of the economies and
adjustments made by the three parties during the epidemic.

After the Covid-19 explosion, people are much stronger than they thought. People are
adapting to the new life after the baptism of the epidemic bit by bit. Lifestyle is unconsciously
adapting to the way people lived during the epidemic. People now voluntarily wear face masks
and carry hand lotion when they go out. They disinfect them at home and their safety aware
nesses are on the rise. MCO inhibits our economic development, but on another level, it shows
the social responsibility of ordinary people, who are obeying the rules. The stores also
cooperate with the adjustment, all the in-store food into takeaway. Everyone also carries out
their daily activities within the prescribed time. Moreover, everyone is doing what they can to
get through this crisis. We believe that MCO has had a dampening effect on our economy for
a short period of time, but we can bounce back after going through this.

To sum it up, we collect the information through interviews and surveys to ensure the
diversity of our data. According to the changes made by buyers and sellers in MCO, analyzing
the economic impact of MCO on them, so as to find out the root cause of the impact of MCO
on economic development. We believe that the microeconomic perspective can help people
to recover better in economic.

2
2.0 Respondents’ Profiles (Descriptive Demography)

This section addresses the analysis of data and show the study through a distributed
questionnaire. There are 7 questions about respondents’ demographics such as age, gender,
race, marital status, no of dependent/ children/ no of people in the household, household
income and Level of education.

2.1 Demography Respondent by Age

Age Frequency (Person) Percentage (%)


Less than 20 years old 0 0
20 to 39 years old 4 66.67
40 to 59 years old 2 33.33
60 years old and more 0 0
Table 1: Demography respondent by Age

Age

80% 66.67%

60%
Percantage

33.33%
40%

20%
0% 0%
0%
Less than 20 20 to 39 years 40 to 59 years 60 years old
years old old old and more
Age 0% 66.67% 33.33% 0%

Figure 1: Demography respondent by Age

The research finds that less than 20 years old the lowest frequency which is none (0%),
20 to 39 years old is the highest frequency which is 4 persons (66.67%), 40 to 59 years old
is high frequency which is 2 persons (33.33%) and last is 60 years old and more have the
lowest frequency which is none (0%). For the sellers, there are 1 person is around 20 to 39
years old and 2 persons are around 40 to 59 years old, while for the buyers, they are all
around 20 to 39 years old. As we can see in Table 1 and figure 1, even we only have 2 persons
in age 40 to 59 years old already good to help this research.

2.2 Demography Respondent by Gender


Gender Frequency (Person) Percentage (%)
Male 2 33.33
Female 4 66.67
Table 2: Demography respondent by Gender

3
Gender

66.67%
80%

Percantage
60% Male
33.33%
40% Female
20%
0%

Figure 2: Demography respondent by Gender

As we can see at table 2 and figure 2 show that our respondent is male and female by
gender. It was recorded frequency 2 persons male which is 33.33% and the 4 persons female
which is 66.67% responded. For the sellers, there are 1 person is female and 2 persons are
male, while for the buyers, they are all female. This is mean there is more female to answer
the questions than male.

2.3 Demography Respondent by Race


Race Frequency (Person) Percentage (%)
Malay 2 33.33
India 0 0
Chinese 2 33.33
Bumiputera 2 33.33
Table 3: Demography respondent by Race

Race
33.33% 33.33% 33.33%
35%
30%
Malay
25%
Percantage

20% India
15% Chinese
10% Bumiputera
5% 0%
0%

Figure 3: Demography respondent by Race

The research about the race profile respondent shows that frequency for Malay is 2
persons which is 33.33%, the frequency for race India is none which is 0%, while frequency
for Chinese is also 2 persons which is 33.33% and lastly frequency for Bumiputera is also 2
persons which is 33.33%. For the sellers, there are 1 person is Bumiputera and 2 persons are
Chinese, while for the buyers, they are 1 person is Bumiputera and 2 persons is Malay. So, as
we can see, there are 3 races have a same frequency which is Malay, Chinese and Bumiputera.

4
2.4 Demography Respondent by Marital Status

Marital status Frequency (Person) Percentage (%)


Single 2 33.33
Married 4 66.67
Table 4: Demography respondent by Marital status

Marital Status
100% 66.67%
Percantage

33.33% Single
50%
Married
0%

Figure 4: Demography Respondent by Marital Status

Table 4 shows that the marital status was recorded for single is have 2 frequency of
persons which is 33.33% and the married is 4 frequency of each person which is 66.67%. For
the sellers, they are all get married, while for the buyers, they are 1 person get married and
2 persons are still single. This is mean the respondent more is marital status from married.

2.5 Demography Respondent by No of Dependent

No of dependent (person) Frequency (person) Percentage (%)


None 1 16.67
1 to 2 0 0
3 to 4 2 33.33
5 and more 3 50
Table 5: Demography respondent by No of dependent

No of Dependent
50%
50%
40% 33.33% None
Percantage

30% 1 to 2
16.67%
20% 3 to 4

10% 5 and more


0.00%
0%

Figure 5: Demography respondent by No of dependent

At table 5, we can see that no of dependent for none is frequency 1 which is 16.67%,
no of dependent for 1 to 2 is frequency 0, after that no of dependent for 3 to 4 is frequency
2 person which is percentage 33.33% and lastly no of dependent for 5 and more is 3 persons
which is 50%. For the sellers, there are 1 person has around 3 to 4 dependents and 2 persons
have around 5 and more dependents, while for the buyers, there are 1 person is none

5
dependent, 1 person has around 3 to 4 dependents and 1 person has around 5 and more
dependents. So, this is show that in figure 5, no of dependent of 5 and more is the highest,
for 3 to 4 is high and for 1 to 2 is lowest.

2.6 Demography Respondent for Household Income for A Month

Household income for a month Frequency (person) Percentage (%)


Less than Rm 2,999 1 16.67
Rm 3,000 to Rm 4,999 3 50
Rm 5,000 to Rm 6,999 1 16.67
Rm 7,000 and More 1 16.67
Table 6: Demography respondent for Household income for a month

Household Income for A Month


50% Less than
Rm 2,999
50%

40% Rm 3,000
to Rm
4,999
Percantage

30%
Rm 5,000
16.67% 16.67% 16.67%
20% to 6,999

10% Rm 7,000
and More
0%

Figure 6: Demography respondent by Household income for a month

It was show at table 6 is household income for a month, less than RM 2,999 frequency
is 1 person which is 16.67%, for income RM 3,000 to RM 4,999 frequency is 3 persons which
is 50%, income for RM 5,000 to RM 6,999 frequency also 1 person which is 16.67% and lastly
income for RM 7,000 and more frequency is 1 person which is also 16.67%. For the sellers,
there are 1 person is less than RM 2,999, 1 person is around RM 3,000 to RM 4,999 and 1
person is around RM 7,000 and more, while for the buyers, there are 2 persons are around
RM 3,000 to RM 4,999 and 1 person is around RM 5,000 to RM 6,999. So, as we can see figure
6 it shows that income for RM 3,000 to RM 4,999 is the highest than the other income which
is maintenance.

2.7 Demography Respondent by Level of Education


Level of education Frequency (Person) Percentage (%)
No formal education 0 0
Primary Level of education 0 0
Secondary Level of education 2 33.33
Diploma Level of education 3 50
Tertiary Level of education 1 16.67
Skills or Certificate Level of education 0 0
Table 7: Demography respondent by Level of education
6
Level of Education 50%
50%
45%
40% 33.33%
35%
Axis Title
30%
25% 16.67%
20%
15%
10% 0% 0%
5%
0%
No formal Primary Secondary Tertiary Skills or
education level of Level of Level of Certificate
education education education Level of
education
Level of education 0% 0.00% 33.33% 50% 16.67%

Figure 7: Demography respondent by Level of education

As we can see at table 7, level of education for secondary is 2 persons which is 33.33%,
diploma level of education is frequency 3 persons which is 50% and for tertiary level of
education frequency is 16.67%. For the sellers, there are 2 persons are Secondary Level of
education and 1 person is Tertiary Level of education, while for the buyers, they are all
Diploma Level of education. Other than that, there is no recorded.

7
3.0 Survey Results

The survey results of the questionnaire and interview on the impact on households
(buyers) or firms (sellers) of the Movement Control Order (MCO) during the Covid-19
pandemic crisis in Malaysia are showing that at the below.

3.1 Seller

For the seller respondents, we have interviewed 3 individuals for the firms, where these
3 individuals will respond with questions that we provided related to impact they received
during the occurrence of Movement Control Order (MCO) during the Covid-19 Pandemic.

First and foremost, for the question that did the Movement Control Order (MCO) change
their life routine. Most sellers are forced to close their business because of the Movement
Control Orders (MCO), so that causing the economics of their business over time. Not only
that, most sellers have to do the significant things that they will throw away working hours to
bear the cost of wages stably. In addition, they also had to change the way they sell, that is,
selling the products in online to help their business and help to improve their businesses.
There are many sellers nowadays that doing sales online during Movement Control Orders
(MCO). Besides that, while the order was in progress for several month, some sellers faced
problems where they had to pay shop rent even though they closed their shop during the
period of Movement Control Order (MCO). However, for those sellers, most of them feel that
they actually enjoy the Movement Control Order (MCO) because it makes them to spend more
time with their family members, even if they cannot do the outdoor activities together. Some
individuals have to cancel their hobby activities that doing at outside and find new hobby
activities that can be done in their house.

Other than that, the next question is what major changes in their life due to the MCO.
Obviously, the large impact that happening was the seller faced a drastic economic downturn
and their lifestyle changed that they had to reduce working hours and close their stores when
Movement Control Orders (MCO). Not only that, when the shop is opening, the worker had to
change their working style that they had to follow the rules and orders that setting by the
government where they had to always check the body temperature before entering the
working premises and reduce the working hours for each employee. Furthermore, for the next
question is what type of our respondent vector sector and what did there sell. Our respondents
include brick-and-mortar store operators and online platform operators and they sell different
products and services such as daily necessity, sport goods and food vendor. Next, for the
question that did they have a problem when to pay rent and salary during on Covid-19, they
answered that facing the same problems more or less did is how to pay the rent and pay the
salary. When the Movement Control Order (MCO) took effect, most of the sellers still continued
to pay rent. However, at the same time, they will also control the working time of their
employees from time to time when the order came out by the government. Even though, the
sellers have trouble that paying the rent as well as employees’ salaries, a handful of sellers
do not lay off or fire their employees and the employees will return to work after the pandemic
is over.

8
On top of that, for the store supply did the seller still order it or not. The answer for
respondent, one of our respondents will keep asking to ship his supplies from his suppliers
because he will keep opening the store even if the order is issued by the government.
Moreover, for the others, they do not ask to ship their supplies because they have to close
their store while the order is issued by the government. According to our analysis, this is
because most of the factories that producing supplies have to close while the MCO is running,
so that they cannot send and receive requests from stores that have a shortage of supply.
This can be attributed to supply decrease. Referring to the figure 8, the supply curve shift to
the left from S1 to S2. Quantity demanded will be greater than quantity supplied. Due to the
excess demand, the price will increase from P1 to P2 and quantity demanded will decrease
from Q1 to Q2 during the period of MCO.

Figure 8: Decrease in Supply

Additionally, there is the sellers’ thinking that changing from brick-and-mortar platform
to online platform operator to solve their problem. Most of the sellers had to change their
sales concept that transforming into online shopping platform in order to help them to improve
their business during the Movement Control Orders (MCO). This is because it can help the
seller to pay the rent as well as the employee’s salary while the MCO is being run. In addition,
with the implementation of MCO, people prefer to buy goods in online because they cannot
go out and many sellers use social media to promote the goods they sold, so that they can
attract people to buy it. Referring to the figure 2, this can be said demand increase that shift
to right from D1 to D2. Since demand increases, quantity demanded is greater than quantity
supplied. Due to the excess demand, the price will increase from P1 to P2 and quantity
demanded will decrease from Q1 to Q2 because online sales are increasing day by day during
the period of MCO.

Figure 9: Increase in Demand

In addition to that, for the question that are there alternative mechanisms to survive the
livelihood during the crisis for the sellers, most of the sellers say that no, they only had to
close their stores and do business at home. Due to economic is going downturn, they had to
be frugal to support their family. In our opinions, we think that it is the better alternative for

9
the sellers because the sellers can prevent the infection from spreading more widely and
working at home is also the best recommendation given by the government to help the sellers.
Next, for the next question did the seller take part to assisting others on MCO period. Even
though the situation becomes normal, but the sellers will do not contribute to help the others.
This is because the seller had to organize and control their finances in order to avoid the
finance losses. Moreover, they had to reduce assistance to the others due to their business
being disorganized. This is because Movement Control Orders (MCO) occur erratically. On the
contrary, they should think the ways that increasing their sales while the MCO is running.

Apart from that, the sellers’ opinions about of the current situations handled by
government are the sellers were dissatisfied with the rules that laid down by the government
from time to time during the Covid-19 pandemic. This is because they often changed the
policies, whereby giving an unsatisfactory burden to the sellers. Besides, the hope of sellers
that the ways government to help the corporate in order to overcome difficulties are firstly,
the sellers hope that the government can deal with the issues of Covid-19 Pandemic well and
thoroughly. Secondly, they also hope that the issues of Covid-19 Pandemic will be resolved
quickly. This is because the epidemic that led to the closure of the store. Eventually, resulting
in a rapid decline in sales, so they hope that they can resume their operation as usual in order
to reduce the loss. In our opinions, the government has done its best to overcome this Covid-
19 pandemic, so that we can do our activities routine as usual but we must abide by the
regulations that issued by the government.

Aside from that, the question that did the seller thinking about the government will
introduce the new policies for the transformation. For the sellers’ answers, they do not expect
that the government will issue or renew the policies and introduce the transformation policies
in the future due to economy recession during the Covid-19 Pandemic. This is because the
transformation for digital and mechanized that requiring the substantial financial resources,
especially for mechanization. The substantial financial resources are needed by the
corporations that managing the mechanization division in order to purchase the machinery as
well as carry out such activities. From our point of view, we also do not think that the
government will make a new policies and transformation about digitalization and
mechanization because it is better that the government focuses on this Covid-19 Pandemic
more deeply, so that all communities can live their lifestyle as usual.

Above all, the suggestions that given by the seller to the government, among which is
the government should let the sellers do their business as usual, so that they can control the
balance of their businesses. Furthermore, the seller also suggested that the government can
deal with this epidemic prudently and provide the right policies as well as provide the
employment opportunities to workers who have lost their jobs during the Covid-19 pandemic.
The government can also follow the ways of China in overcoming the Covid-19 Pandemic. For
example, the government can imitate China to build a "Huoshenshan Hospital" to provide
treatment for patients who have affected by the epidemic. Establishment of hospital also avoid
the situation of insufficient beds. In our opinions, we feel that it was a good suggestion, but
the government had to think about financial and technological differences between Malaysia
and Chinese government quite differently because all these thinks had to be done in a short
period of time and required high financial costs.

10
3.2 Buyer

For the buyer respondent, we have interviewed 3 individuals for household, where these
3 individuals will respond with questions that we provided related to impact they received
during the occurrence of Movement Control Order (MCO) during the Covid-19 Pandemic.

First and foremost, for first question is what the main effects of the MCO towards your
daily routines from the aspects of career are, income, health, etc. Based on the answer from
first respondent, the main effect of the MCO is Online Learning Distance (ODL). She is a
university student, she had to study from home because the government ordered that all
higher education institutions must close during MCO. She noticed that significant changes in
how learning is delivered, particularly in terms of the number of assignments assigned. Next,
second respondent’s answer, the main effect of the MCO for her daily routine is her time and
health were affected. Due to MCO, she has no time to exercise, and it causes her health to
be increasingly affected. Her employer also could not pay her salary because the company
could not operate. Lastly, third respondent’s respond is her financial expenses have been
unstable due to uncertainty of situation, in which case has affected her mental health.

Other than that, the next question is that are there any particular major changes in your
life due to the MCO. First respondent’s answer is yes. A big particular major change in her life
is she spent a lot his money on shopping than usual during the MCO. Next, second respondent
respond yes because her big change due to MCO is her spending income has decreased.
Lastly, third respondent’s answer is yes because her social life has never been the same after
the MCO, daily routines has changed drastically as well as career wise. Besides, for next
question is do you think that purchase takeaways food or drink will affect you. For the first
respondent’s respond is it will be no problem if she can manage to control the amount of
takeout foods or drinks that she has purchase. She says that keeping order takeout will be a
waste of money and unhealthy for her. For second respondent’s respond is yes because for
her buying takeaways food or drink is safer because it can reduce the effects of Covid-19
infection on. Lastly, third respondent’s answer no for this question.

On top of that, the question that do you think MCO affects the convenience of your daily
expenses. All respondents’ answers are yes. First respondent responds that if the goods she
wants are not available in a physical store, the current online shopping platforms have things
that were not available before. Second respondent says that her income has decreased due
to MCO. So, she could not afford the convenience necessities. Lastly, the third respondent’s
responds that the food consumption as well as utility bills are getting higher every day.
Additionally, for the next question that do you think MCO has changed the amount and
frequency of purchases. All respondent’s answers are yes. For the first respondent, she
responds that she spent so much money on buying online during the early days of my MCO
because she spends a lot of time on online shopping platforms that entice her to buy a lot of
stuff that she doesn’t really need. Next, the second respondent’s answer is yes, because with
a small amount of income and the frequency she goes to the supermarket has decreased. The
third respondent replies that due to lockdown, consumptions and usage in all aspect occurred.

11
In addition to that, the question is what are the alternatives about financial strategies or
resources to survive during MCO. The suggestion that given by first respondent is working as
an agent or drop-shipping especially for full-time students who need extra money. For the
second respondent’s answer is to set up a business that selling the special needs items for
the current situation such as face masks, hand sanitation, etc. Lastly, third respondent
suggested by controlling expenses should provide stability during current times. Moreover,
the next question is what kind of action or aid should the government provide. Both the first
and second respondent suggested that since the government continues to impose different
kinds of MCOs that make no difference, they should support struggling small businesses and
they should allocate more funds to help them in living. They also suggested that the
government should offering more job opportunities. While the third respondent suggested
government should subsidise multiple things as well as services. The steps taken by the
government are to provide financial support to employers and traders. This aims to stabilize
the position of its business in the market. Thus, when the business position is stable in the
market, then there is no retrenchment for employees. In addition, the government also needs
to increase development projects in order to increase employment opportunities and reduce
unemployment in the country.

Aside from that, the question that do you prefer to purchase goods online during MCO.
Both first and third state that yes because online buying is easy, easy to compare prices and
find products of higher quality and indeed as it is safer. While second respondent replies that
no because some of the stuff that arrived did not satisfy her. She also delivery of goods was
slow due to MCO. Furthermore, for the next question that do you think there has any changes
in the price of goods lately? For the first and second respondent think the price of goods has
increased. Second respondent says that because some people buy goods in large quantities
for emergencies and that’s why the price of goods has increased. While third respondent think
that she did not realised about it. However, she thinks the cost of obtaining the goods
relatively increasing after using online services. The increase in online goods is because more
and more people are using online purchasing technology to reduce the risk of face-to-face
purchases. When there is an increase in demand, then increase in the price of goods. This
can be seen by the figure 10 below when the original price of the goods is P0 and the quantity
of the goods is Q0. When there is an increase in the demand for online goods, the demand
curve shifts to the right from D1 to D2. The price of goods online increased from P0 to P1, and
the quantity of goods increased from Q0 to Q1 as firms added stock.
Price

Figure 10: Increase in Demand


Apart from that, the question that do you think MCO has given you the opportunity to
manage your financials wisely? All respondents respond are yes. This is because it has change

12
bad habit of first respondent that used a lot of money while purchasing items. So, it has
changes her to think more before purchasing items that she really needs. For the second
respondent, she thinks that she able to strategize the purchase items that she really needs
and reduce purchases against the items of her will. While third respondent says that expenses
are getting higher, and the only solution is to control. Besides that, for the next question that
do you think the goods provided by store in the MCO case are satisfactory to you. For the first
and third respondent think that it is an average based on their opinion. While second
respondent state that no because some quality of goods has declined such as paddy. She says
rice is in high demand. therefore, farmers had to harvest paddy in a short period of time. This
causes the quality of rice to decline as paddy requires a long period of time for quality rice.
Based on figure 11, the original price of rice is P0 and the quantity is Q0. When there is a
shortage of rice resources. Then, the supply curve shifts to the left from S1 to S2. This caused
the price of rice to increase from P0 to P1 and the quantity of rice to decrease from Q0 to Q1.

Figure 11: Decrease in Supply


Besides that, the question that do you think that MCO has increased your awareness of
other forms of shopping. All respondents have the same point that this MCO has increased
our awareness of other forms of shopping. First respondent responds that we must carefully
manage our expenditures. Next, second respondent thinks that we should follow the SOPs
that been provided by government which is to wear a face mask every day when going out.
The third respondent says that everybody should be aware that there are many ways to obtain
items, services as well as most things these days. By using Grab as your main platform to
purchase groceries, Food Panda to purchase food, or any needs.

Apart from that, the question that are there alternative mechanisms to survive the
livelihood during the crisis. The answer given by first and second respondent are we need to
follow all regulations (SOP) that provided by the government to hold a pandemic Covid19.
While third respondent give suggestion that we should doing freelance works, part time jobs
and doing side business for extra income. During the MCO, respondents should not panic in
buying goods and not make bulk purchases at one time. This is because it can cause the
demand to be too high in the market and the goods to become increasingly limited, hence the
price of the goods will increase. Therefore, respondents need to plan their expenditure by
focusing on household necessities in order to avoid increasing demand for goods and in turn
to prevent the price of goods from becoming too high in the market. It will also urge supplier
to reduce the price of certain goods to households. Based on figure 12, the original price is
P0 and the quantity Q0. When households control purchases and do not buy in bulk. Then the
demand curve shifts to the left from D1 to D2. There was a decrease in price from P0 to P1
and the quantity of goods was also reduced from Q0 to Q1.

13
Figure 12: Decrease in Demand
Other than that, the question that if you continue your life normally during the crisis, do
you take part in assisting others. The First and second respondent stated that we should do
more charity and help by providing necessities to the oppressed because of this pandemic.
Meanwhile, third respondent stated that the oppressed can do small business to support their
daily lives during the pandemic in order to buy basic necessities. The government and the
public have also to some extent provided basic assistance to oppress individuals because of
this issue. For example, the government provides E-Wallet initiative assistance to households
to spend locally. This can help increase household income and in turn the household will spend
and cause the demand for goods will increase in the market. Thus, it can help increase the
income of local traders through spending incurred by households as well as boost economic
spending in the country.

Additionally, the question that providing thoughts and opinions on the current situations
handled by government. All respondents have the same main point that government should
has a more effective policies and action to control the transmission of Covid19. Some
respondents feel the government is unfair. They also felt the SOPs issued by the government
that were very confusing. They argue that government actions in controlling this contagion to
some extent affect their income. The government should set appropriate and regular business
operating hours for traders so that households can make necessities according to the set time.
The government also needs to increase the amount of assistance provided to households and
firms. For example, the amount of concerned national aid needs to be increased from RM300
to RM500. This will stimulate household spending. So, it can also prevent the country's
economy from stagnating during the implementation of the MCO.

Above all, the question that do you have any particular suggestion on how to improve
the current situations. The suggestion that given by first respondent is each party should
receive a similar punishment. She also recommended that the country's COVID-19 planning
and policies be revised. It is suggested that New Zealand serve as an example. Next, second
respondent suggested that we should adhere to the SOP provided by the government such as
frequent hand washing, practicing physical distance and practicing precautions against
covid19. Third respondent suggested to create new budget plans for the current situation.
After analysing the respondent's response, the government needs to be concerned about the
welfare of the people, so that no one is left behind in getting help during the COVID-19
epidemic. They need to plan and manage the country's expenditure well to prevent the
country's debt from increasing. Among the state expenditures that can be used is to provide
subsidies to producers and recipients in order to reduce their expenditure burden.

14
4.0 Recommendation/Discussion

Improvement for the respondent questionnaires, initially means gathering as much


information effectively. By adding up numerous questions will surely enable the procedure to
be more effective. However, due to the limited availability in terms of movement, accessibility
to be in close contact with respondents, and other external factors, we may not be able to
observe respondent’s actual expressions as well as gathering much information for the
research purposes. Increasing the number of questions that will provide more answers and
ensure higher chances of obtaining individuals or respondent’s perspective and thoughts, but
the situation gets complicated whereby some respondent prefers to be asked “personally right
in front” or even phone calls rather than answering through forms. This has always been one
of the main challenges for completing the interview task. In which this case, the only
improvement can be done through this project should be verbally face to face.

Other than adding respondents’ questions, improvements can be done by increasing


more numbers of respondent for this project. To state one main example, one particular
member should have at least two respondents as intended. By increasing more respondents
towards the research, this also enables the process to be more informative. Due to time and
movement limit, some courses of work cannot be carried out as pre-planned. With the
availability to do this task without all the limitation that has been enforced at current times,
more opinions and information from seller as well as buyers that will indeed expand and
generate greater size of results. By obtaining more respondents’ opinions or answers,
hypothesis may also be carried out from the task given and this gives a much clearer picture
of the pandemic impact. Other than that, by obtaining more questions, filtering relevant
questions and answers should specifically indicates problem solving solutions and identifying
each issue that the respondent experienced.

Recommendation to improve this task may be variable as other aspects can be added
into the questions. Due to some respondents answered indecisively and simple for
questionnaires given to them, this has generated unclear answers and some of the questions
needed few alterations. To state one example, for buyer in questionnaire “Are there any
alternative ways for you to sustain living quality during the pandemic?? ”. This question has
already been altered to be more specific in order for respondents to understand it. This is
because some respondent only answers concisely without having to explain specific issues
that needed to be discussed. The respond such as “Yes, we do need aid for all sides especially
the government”. Which this case is concise yet lack of explanation, if the question provided
to respondents can be answered elaborately, then the probability of the respondent answering
the questionnaires are much likely to be clear and informative.

Methodology for this assignment task can be carried out various ways. However, these
tasks were carried out online as the availability to move around are most likely restricted at
the moment. Generally, the group had to improvise all aspects by utilising every online
platform to obtain every answer as well as results. By using various method, this also enables
to collect more references, ideas and information to increase the probabilities to complete this
assignment distinctively. Observation method will also enable to observe the current situation

15
of business owners as well as consumers in terms of financial expenses, living quality and also
mental health. Other than financial aspects, psychological aspects should also be observed as
this influences the economy. Demand and supply for specific items may occur from time to
time as this situation has given multiple decisions to be made by each individual.

Last but not emphatically least, recommendation or further improvement in interviews


face to face session should be one of the main ways to carry out this task assignment. Due to
pandemic COVID-19, online interview session has given multiple issues such as intermittent
connections, limited coverage for certain areas and also technical difficulties. Generally,
carrying out interview through “face-to-face” session will avoid these issues and also provide
opportunity to respondents to think and talk about their idea and opinions thoroughly. By
taking this alternative, not only this will provide a picture for the project, but this will indeed
give clearer perspective for each of us as some individuals are struggling to sustain their living
quality, while some are surviving decently regardless of the Covid-19 Pandemic.

16
5.0 Conclusion

The survey on the impact of Movement Control Order (MCO) during the pandemic crisis
of Covid-19 in Malaysia is held by our group 13. We interviewed six respondents, including
three sellers and three buyers. Before interviewing the respondents, we prepared 15 questions
for each seller and buyer about the impact of MCO during the Covid-19 pandemic. Through
the results of this investigation, we have collected some information and evidences to make
the survey report.

According to the survey results, the Malaysia Movement Control Order (MCO) indeed
brought a negative impact on sellers. Both physical store sellers and online platform sellers
have been affected to varying degrees. Regarding offline physical stores, all the stores are
closed except for the supply units of medicines and groceries. Regarding online platform stores,
in fact, they have also been affected to a certain extent. This is because the government has
restricted the working hours of express delivery and prohibited the international transportation.
This led to a decline in sales of the online platform stores. Faced with this series of negative
changes, for physical store sellers, most of them close storefronts and let employees take
unpaid leave. For online platform sellers, they continue to operate because the impact is
minimal.

In the meanwhile, not only the sellers, this movement control order also brought a huge
impact on buyers. Due to the government orders, many sellers were forced to close their
stores, resulting in many layoffs and salary cuts occurred. Moreover, the shortage of supplies
for food and grocery caused the goods prices are increasingly. As a result, the buyer's situation
becomes more and more precarious. Therefore, they prudently control the daily expenses and
reduce the unnecessary waste. According to the survey results, some buyers chose to comply
with government directives, while the others said that if they want to maintain their quality of
life, they must find some freelance or part-time jobs to earn some extra wages. Due to the
closure of offline physical stores, so the online shopping is growing gradually. As such, the
unemployed can consider about working in the express transportation industry such as Pos
laju, DHL, Grab and so on.

This survey shows that both buyers and sellers are very dissatisfied with the
government's current handling of the epidemic situation. This is because the government has
not prudently monitored and controlled this epidemic. As a result, the epidemic situation
continued to rise, and even reached more than 6000 cases a day. Besides that, the
government also treats ordinary civilians differently from those with positions of power.
Selective law enforcement occurred because of these people with positions of power do not
abide by instructions, which seriously leads to the randomness of law enforcement officials. It
is very obvious that people are increasingly lacking confidence and trust in government
because they have suffered unequal and unfair treatment.

In the current national crisis, the government must abandon politics and ethnic thinking
because the virus does not distinguish people's skin color, beliefs, and religions. Fairness and
equality are the key to improving the epidemic, so the government must not be able to

17
differentiate treatment with the thinking of the privileged class. The government should
severely punish those who fail to comply with instructions and regulations in order to alert the
people. In addition, the government must have a comprehensive thinking to avoid loopholes
in policies and measures. Regarding Malaysia’s economic recovery, the government must solve
the problem from the root cause, which is to strictly control the epidemic. Only by ensuring
the safety of the people that can the government resume economic activities. Otherwise, the
consequences would be disastrous.

In fact, we believe that the number of cases of epidemic infections has been rising is not
only because of the slowness and confusion of government decision-making, but also the
ignorance and arrogance of the people. People's self-discipline is very important in preventing
the epidemic. Even if those in positions of power that do not set a good example for the
people, we must consciously abide by government directives and regulations. As the saying
goes, unity is strength. If everyone is very self-disciplined to prevent this epidemic, we can
believe that this will definitely improve. In this way, there will not be so many tragedies in
Malaysia.

18
References

Bantuan Prihatin Nasional (BPN). (April 2, 2020). Retrieved 29 May 2021 in Lembaga
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kump=6&bt_skum=1&bt_posi=2&bt_unit=1&bt_sequ=525&cpage=7

Covid-19 Malaysia. (May 21, 2021). Retrieved 22 May 2021 in Kementerian Kesihatan
Malaysia from http://covid-19.moh.gov.my/kajian-dan-penyelidikan/nilai-r-malaysia/
0521/r-naught-malaysia-hari-ini-21052021

E-Wallet assistance. (December 24, 2020). Retrieved 29 May 2021 in Kerjasemasa


from https://www.kerjasemasa.com/2020/12/bantuan-khas-e-wallet-rm-100-ber
mula.html

HuaXia. (April 28, 2021). ADB foresees Malaysia's economy to grow 6 pct in 2021, 5.7 pct
in 2022. Retrieved 28 May 2021 in XinHua Net from http://www. xinhuanet.com/engli
sh/2021-04/28/c_139912569.htm

Rabeatul Husna Abdull Rahman. (April 16, 2020). The Impact of MCO on Employees
and Employers. Retrieved 29 May 2021 in Astro Awani from https://www.astroawani
.com/berita-malaysia/kesan-covid19-ke-atas-pekerja-dan-majikan-238383

See inside China's Huoshenshan Hospital, built in 10 days. (February 4, 2020). Retrieved
22 May 2021 in CBC News from https://www.cbc.ca/news/world/coronavirus-china-
huoshenshan-hospital-photos-1.5450026

Tejvan Pettinger. (September 3, 2019). Diagrams for Supply and Demand. Retrieved 27 May
2021 in Economic Help from https://www.economicshelp.org/blog/1811/markets/diagra
ms-for-supply-and-demand/

Vincent Tan. (May 21, 2021). Malaysia to tighten MCO 3.0 curbs, economic and social
sectors affected. Retrieved 28 May 2021 in CNA from https://www.channelnewsasia.
com/news/asia/malaysia-tightens-mco-3-0-curbs- economic-social-sectors-covid-19-
14849524

I
Appendix

Set of Questionnaire:

The impact of Movement Control Order (MCO) on the firms (sellers) during the pandemic crisis
of Covid-19 in Malaysia.

Bil. Questions
1 Age
2 Gender
3 Race
4 Marital status
5 No of dependent/children/No of people in the household
6 Household income for a month
7 Level of education
8 What are the impacts of the MCO to your daily livelihood activities? Working?
Earnings? Shopping behavior? Spending? Health? Food security? Happiness?
Quality time with family? Socializing? Hobbies?
9 Are there any major changes in your life due to the MCO (as a seller)?
10 Are you a brick-and-mortar store operator or an online platform operator?
11 What type of products does your store sell?
12 How did you solve the problem of rent and salary during the MCO period?
13 In order to solve the financial problem, do you consider firing your workers?
14 Under the influence of MCO, have you ever thought of closing your store?
15 Do you think the supplier will supply you as usual during the MCO period?
16 What do you think of the business of online platform operators during the MCO
period?
17 If you are a brick-and-mortar store operator, do you consider transforming into
an online platform operator?
18 Are there alternative mechanisms to survive the livelihood during the crisis?
19 If they continue their life normally during the crisis, do they take part in assisting
others?
20 What are your opinions on the current situations handled by government?
21 How do you hope that the government can help corporate overcome difficulties
during the MCO period?
22 Do you think the government will introduce policies for corporate transformation?
For example, digitalization and mechanization.
23 Do you have suggestion on how to improve the current situations?

II
Set of Questionnaire:

The impact of Movement Control Order (MCO) on the household (buyers) during the
pandemic crisis of Covid-19 in Malaysia.

Bil. Questions
1 Age
2 Gender
3 Race
4 Marital status
5 No of dependent/children/No of people in the household
6 Household income for a month
7 Level of education
8 What are the main effects of the MCO towards your daily routines from the aspects
of career, income, health, etc?
9 Are there any particular major changes in your life due to the MCO (as a buyer)?
10 Do you think that purchase takeaways food or drink will affect you?
11 Do you think MCO affects the convenience of your daily expenses?
12 Do you think MCO has changed the amount and frequency of purchases?
13 What are the alternatives about financial strategies or resources to survive during
MCO?
14 What kind of action or aid should the government provide?
15 Do you prefer to purchase goods online during MCO?
16 Do you think there has any changes in the price of goods lately?
17 Do you think MCO has given you the opportunity to manage your financials wisely?
18 Do you think the food and goods provided by the store in the MCO case are
satisfactory to you?
19 Do you think that MCO has increased your awareness of other forms of shopping?
20 Are there alternative mechanisms to survive the livelihood during the crisis?
21 If you continue your life normally during the crisis, do you take part in assisting
others?
22 Provide thoughts and opinions on the current situations handled by government?
23 Do you have any particular suggestion on how to improve the current situations?

III
Seller:

Respondent Seller 1 Respondent Seller 2

Respondent Seller 3

IV
Buyer:

Respondent Buyer 1

Respondent Buyer 2 Respondent Buyer 3

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