- MemberNovember 4, 2021 at 11:05 pm
Government intervention is when government intervenes in the market and takes action to help improve economic efficiency. This is very relatable especially when covid-19 pandemic hits the country and brought along health, socioeconomic and financial crisis. Started with the first MCO, where Malaysian economy has been adversely affected, leading to the devaluation of the Malaysian Ringgit and decline in the country’s GDP.
This pandemic situation has brought intensifying negative impacts on jobs, incomes and livelihoods, and disrupting supply chains, causing hardships especially among the most vulnerable. Therefore it prompted the government to come out with interventions to sustain the people’s welfare and to support the businesses, and stimulate the economy (E.g. PRIHATIN stimulus package, PENJANA National Economic Recovery Plan). These economic initiatives were helpful for consumer spending, in order to keep the country’s economy moving.
Businesses need to plan for customer strategy in order to sustain, survive, and recover from the pandemic. Not being able to keep up with the consumer behavioral change will risk businesses being left behind, and eventually kicked out of the game. One obvious point to note is that with higher percentage of people remote working, e-commerce trend have been accelerated, so businesses need to quickly strategize towards digital transformation. Local business starting to sell products online; large companies starting to use data and technology for dynamic optimization. We can already see virtual selling platforms that showcase both products and services; we even have makeup product companies using augmented reality to sell lipsticks.
With that change, unlike before the pandemic, now consumers want to always be connected and hold options in reduced spending. Businesses need most importantly to earn customers’ trust by building rapport and providing consistent level of service. Businesses need to strategize and identify the priorities of the customers in order to maintain customer engagement while attracting new customers.