Impact of COVID-19 on Malaysia's Small and Medium-Sized Enterprises

The worldwide spread of the COVID-19 epidemic has had a significant social and economic impact on many countries. Malaysia had the fourth-largest economy in Southeast Asia before the epidemic, and it had been doing well for the last few years. Based on a forecast from the World Economic Outlook released in April 2021, real GDP growth is expected to fall. Therefore, COVID-19's impact on Malaysian small and medium-sized enterprises (SMEs) becomes the focus of this study. The information was gathered using a questionnaire survey and interviews conducted in July and early August 2020. The SMEs were the focus of this study, which looked at their history, the impact of the COVID-19 crisis on SMEs, particularly their reliance on internet distribution channels to keep their businesses afloat, and the government's economic stimulus plan for small businesses. The findings of this study show that COVID-19 has a significant influence on small and medium-sized businesses in various ways. They have shown that small and medium-sized businesses (SMEs) are affected by their type and size. This study found that the disruption of corporate operations, decreased product supply and demand, low production, financial instability, and a change to the digital distribution channel were among the effects. The study also showed the relevance of government help for the survival of small and medium-sized enterprises (SMEs) in times of crisis. Governments have significant ramifications in adopting policies that provide additional stimulus packages for small and medium-sized businesses, such as financing, advisory services, and training. On top of all that, governments should encourage non-governmental organisations (NGOs) to provide financial and non-financial help to small and medium-sized enterprises (SMEs) to help them deal with the difficulties brought on by COVID-19 through advice, training, counselling, and psychological support. According to the findings of this study, small and medium-sized businesses should take lessons from the crisis and come up with new plans and strategies to ensure their long-term viability.