The 2nd round of DOSM survey results found 96.8% of respondents are beneficiaries of the PRIHATIN stimulus package. Although 79.2% of respondents found the stimulus measures to be effective in reducing financial burden, majority of them still require assistance during phase 3 of MCO (15-28th

April 2020).

NEWSBREAK

DOSM has released the second round results of an online survey that was conducted from 10-24 April 2020 to analyse the effects of the PRIHATIN stimulus package on individuals, as well as their employment and spending pattern. 41,386 respondents took part in this 2nd survey (1st survey 23-31st March: 168,182 respondents).

Impact of PRIHATIN stimulus. The survey found 96.8% of respondents were beneficiaries of the stimulus package, where 68.2% of respondents received 3 types of assistance. The type of assistance received was mostly in the form of cash assistance such as Bantuan Prihatin Nasional, allowance for tertiary students and e hailing cash payment (79.2%) followed by loan moratorium (60.5%), discount on utilities (47.4%) and EPF withdrawals (41.2%). 13.7% respondents said they received assistance from wage subsidy and employee retention programme and only 8.4% took advantage of the credit guarantee scheme. 70.1% found the stimulus measures to be effective in partially reducing financial burden, while 9.1% found it effective in fully eliminating their financial burden and 7.9% found it to be ineffective. Although mostly effective, majority of respondents (82.3%) said they still required assistance during the next phase of MCO (15-28th April 2020).

Impact on employment. Of the 41,836 respondents, only 78.4% are in the labour force. Within the labour force, majority of respondents are working from home (42.6%), followed by 20.3% on rotation basis with full pay, while 8.4% are on leave with full pay and 3.0% on half pay leave. In this survey, only 1.5% of the respondents have been made redundant. The 2nd round of survey did not give impact of employment based on types of employment (self-employed, employer, work in GLC, private sector or MNCs).

Impact on lifestyle and spending pattern. According to the survey, the Covid-19 outbreak has changed and influenced people’s daily lifestyle (96.3%). In the new normal, majority of respondents are also prepared to maintain this new lifestyle post MCO, which includes improving personal hygiene (93.6%), limiting social activities (83.3%), travelling (67.1%), dining out (43.5%) and limiting sports and recreation activities (42.4%). In terms of spending, respondents increased spending on essential food items such as rice (92.1%), fish and meat (91.5%) while 19.9% of respondents spent more on food delivery. In terms of non-food items, respondents increased purchases on hand sanitisers (76.9%), detergent (76.1%), face mask (74.5%).

HLIB’s VIEW

From the DOSM survey, while majority of respondents found the government’s stimulus measures to be effective, they still require assistance during the 3rd phase of MCO (15-28th April), suggesting that the stimulus measures are insufficient to stave off the negative impact of MCO. Post-MCO, many respondents are also expected to continue incorporating social distancing measures into their daily lifestyle, which could also weigh on private consumption. So far, the Ministry of Finance said that 95% of the 10 core initiatives in the stimulus package have been implemented. While the government’s stimulus measures are expected to cushion the drag in private consumption in the short-term, the recovery trajectory remains highly uncertain.

Source: Hong Leong Investment Bank Research - 14 May 2020