TENGKU NUR ATHIRAH BT TENGKU MANSOR 2017199445/HM2425BA

The scenario that currently happening all over the world which a lot of airplanes on the ground
and make the sky is nearing empty at the moment. Today, as countries around the world keep
their borders closed to contain the spread of COVID 19 and almost all passenger flights have
been cancelled. It can be seen that the airline lounges have also become empty due to the travel
restrictions and people can no longer travelling. The COVID 19 pandemic has affect most of
aviation industry in the world and it can be seen in Singapore, Hong Kong, Santiago, Dubai,
New Zealand and others countries. In general, the pandemic not only affect the aviation
industry but also give major impacts to other industries that run every single day.

The COVID-19 pandemic will certainly have an impact on the global economy including
Malaysia. The Covid-19 pandemic has taken a toll on many sectors and industry players in
Malaysia. It also induce the rising concerns nationwide over the country’s economic outlook if
the situation worsens. According to themalaysianreserve.com, Bank Negara Malaysia has
warned that Malaysia is likely to fall into recession this year, with the GDP estimated to be
between 0.5% and -2% due to the economic impact arising from the Covid-19 pandemic. This
likely affect the growth of economy in worse way. Moreover, it also estimated that 951,000
people will lose their jobs. The Malaysian Global Innovation and Creativity Centre predicted
that about 40 percent of small and medium-sized enterprises will have to end up their operations
if the COVID-19 chain of infection persists for three to six months.

Other than that, the manufacturing sector has severely affected during the MCO period.
According to recent news on thestar.com.my, data reveals that investments implemented worth
RM62.5bil that employs over 112,000 jobs are now severely affected by the MCO.
The uncertainty over the immediate health and future of manufacturing is a source of concern.
The sector accounts for 22.3% of the country’s RM1.4 trillion GDP and losses from just the
first 14 days of the MCO is estimated to be RM12.9bil. The overall length of the MCO is now
going to be two months and the loss from just manufacturing is going to be far larger than
initial estimates. The loss of production and exports accounted from just the manufacturing
sector for the first 14 days of the MCO is forecast at RM64.6bil and RM32bil respectively.
Therefore, this will be harder for the production of goods in this prolonged condition.

In the hospitality industry, it has affects the daily operation and need to close down their
business. According to the Malaysian Association of Hotels (MAH), about 15 cent of the hotels
in Malaysia may have to shut down their operations due to Covid-19 pandemic. MAH chief
executive officer Yap Lip Seng told the New Straits Times recently that 50 per cent of the
hotels responded that they are considering ceasing operations and 35 per cent of hoteliers said
they would temporarily halt their businesses. The current situation has reported that there were
170,085 cancellations of hotel room bookings valued at RM68 million as of March 16, 2020.
In terms of F & B sector, in the good terms, online food delivery has made an impact which
having a surge in demand as many people avoid eating out and quite a number of restaurants
are temporarily closed. The improvement of online ordering and delivery services is being
prioritised to cater all the demands and needs of society. However, there is bad impacts which
involved the distribution of food supply chains. Significant delays in manufacturing and
distribution would slow down the entire food supply chain and effectively contribute to a
shortage of essential goods. A stable food supply is needed to ensure that the manufacturing of
food and beverage products, ingredients and other raw materials as well as distribution by the
retail sector can continue uninterrupted.