Literature Review
Covid-19 Bring Impact to All Economy
Covid-19 is a pandemic disease that will be transmitted through droplets or physical contact
from person-to-person, this virus is origin from Wuhan, province of China (Wu, Chen & Chan, 2020).
‘The pandemic disease had affected the global economy condition including Malaysia. To against the
transmit
ion of the virus in Malaysia, the local government had enforced social distancing and
idents in Malaysia. The enforcement of the MCO had
obviously decreased the number of infected cases in Malaysia, In the MCO period, all the business are
movement control order (MCO) to the r
required to stop their operating system except for those businesses who provide the essential services
and goods in the daily routine (Daniel Tang, 2020). The recession of the economic growth had affected
the working capital management of the company. The insufficient of cash in a business could ultimately
lead to critical restructuring by selling of the company’s assets or reorganization through bankruptcy
proceedings.
Impact of Covid-19 to Construction Industry
According to (Sivalingam, 2020), construction industry has facing predicament situation during
the spreading of pandemic disease, Covid-19 especially after the onset of the MCO. Most of the
construction company will be hire foreign labor as they required a lower salary compared to the local
labor (Hamid, Singh & Jamadi, 2013), Some of the foreigner decide to return their hometown due to
the uncertainties with the current situation. During the MCO period, all the business chain forced to be
stop, this give impacts on the supply chain for the key building materials such as cement, equipment
used and et cetera as these material might not be rebuild in the short term. This situation will caused a
delay schedule on the constructions work. SME has been affected heavily by the pandemic disease due
to the movement control order and reducing working hours in the workplace to avoid the transmission
of virus among the company environment.
Regarding to Ng (2020), there will be seventeen thousands of company will be affected by this
pandemic disease. If contractors fail to produce on time, this may weaken the willingness of property
developers to produce to their customers on the scheduled hand over date — particularly for housing
projects, which accounts for a large portion of the construction industry. At the meantime, in this
particular period contractor might facing problems such as insufficient of raw materials as there is a
crisis in the supply chain, the increasing price on materials and some of the labour might be force to
adopt quarantine. Based on the statistics provided by the Department of Statistics Malaysia, the
‘economy of Malaysia have slightly increased in the first quarter, but not construction industry has
declined by 7.9%. This scenario had appered in prior of the Covid-19 outbreak.
According to the information provided by TheStar (2020), they determined that there will have
a slower recovery for the consturction sector in Malaysia after the MCO no matter it is a company that
2owned a better financial position or vice versa. All the construction industry has been critically get
impacted by the pandemic disease and restriction during MCO as all the development project including
the small, medium or large size of project were enforced to be suspended during the servere period (Lai,
2020). Fortunately, government had provided special incentive to specified company that fulfill the
requirement.
‘Regarding to Kaur (2020), he stated that there will have a negative impact on earning per share
for all the constractors around 14 to 22 percent, The contractor association had urged the government
of Malaysia to send the latest standard operating precedures (SOP) which allowed certain industry to
‘operate during the 3" phase of the MCO due to avoid the liquidated and ascertained damages (LAD)
(Yusof, 2020).
Impact of Covid-19 to Ki Hon Constru
nm
During the MCO period, all the renovation work has been forced to be stop. All the worker are
not able to work at home as all the works is based on practical not on paper work. All the work need to
be reschedule and clients need to be wait for the renovation go on after the MCO. This might cause
client's dissatisfaction due to the delay of work but it could not be avoided as it has enforced by
Malaysia's government. Through the short conversation in mobile phone with the workers in KI HON,
he said that the revenue of the company had dropped compared to previous year and the number of
projects also decreased as well.
During the MCO, while KI HON wan to apply for the permission by the government to continue
the project to avoid the LAD, but the SOP had stopped KI HON. This is because the SOP had included
to provide workers to go for investigation on COVID-19 screening, transportation, practice social
distancing and sanitize all transportation used by them. All of these expenses will be a large amount of
‘cost and burden to the company under the worn economy.
SWOT & Analysis
SWOT is the acronyms which stands for Strength, Weaknesses, Opportunities and Threats. It
is designed to organize a list on these four items for the company’s business as it can be a part on the
planning process of the company’s future. SWOT can be divided into two different parts which is
internal and external of the company. Strengths and Weaknesses are categorize in the internal part of
the company. In vice versa, the opportunities and threats will be categorize in the external part of the
‘company. In this changing environment due to the pandemic disease, the construction company can
adopt this analysis to evaluate according to the transformation of the environment and actively respond
to the situation proactively.