A Time To Shine: How Business Interruption Micro Takaful Scheme Step Up To Covid-19 For Micro Enterprises In Malaysia
Journal of Contemporary Issues in Business and Government,
2021, Volume 27, Issue 2, Pages 171-177
AbstractAfter a series of disasters, including major floods, landslides, and hurricanes, Malaysia was affected by multiple damages and losses. Moreover, with the proclamation of the Movement Control Order (MCO) by the government, the COVID-19 pandemic has led to widespread economic disruption across the country. By this year, Malaysia's Gross Domestic Product (GDP) is projected to contract between 0.1 per cent and 4.6 per cent. However, this projection may be negatively impacted due to the closures of short-term business, sales losses, and the downturn in revenue. In Malaysia, the Micro, Small and Medium Enterprises (MSMEs) amounted to 907,765, in which 693,679 (76.5%) comprised of microenterprises (MEs). After ceasing their operations, these MEs and businesses were prone to bankruptcy, in which MEs were severely affected by the MCO. Therefore, this article investigated the coverage of existing insurance schemes of business interruption losses, formulated the business protection schemes against business losses by observing the effects of COVID-19, and the requirements of takaful/insurance protection, particularly on MEs in Malaysia. Hence, this article focused on business interruption during a pandemic, which involved microbusiness interruption scheme for MEs in Malaysia.
- Ahmad, N. H., & Seet, P. S. (2009). Dissecting behaviours associated with business failure: A qualitative study of SME owners in Malaysia and Australia. Asian Social Science, 5(9), 98-104.
- Burhan, N.A.S., Che Razak, R., Salleh, F., Labastida Tovar, M.E. (2017). The higher intelligence of the ‘creative minority’ provides the infrastructure for entrepreneurial innovation. Intelligence, 65, pp. 93-106. Cited 3 times. DOI: 10.1016/j.intell.2017.09.007
- Chong, W. Y. (2012). Critical success factors for small and medium enterprises: Perceptions of entrepreneurs in urban Malaysia. Journal of Business and Policy Research, 7(4), 204-215.
- Daud, W.N.W., Zainol, F.A., Salleh, F., Yazid, A.S., Ismail, S., Markom, R., Mukhtar, N.D.(2017). Takaful rules and regulations for ASEAN countries: Takaful player perspectives. Proceedings of the 30th International Business Information Management Association Conference, IBIMA 2017 - Vision 2020: Sustainable Economic development, Innovation Management, and Global Growth, 2017-January, pp. 2363
- Donthu, N., & Gustafsson, A. (2020). Effects of COVID-19 on business and research. Journal of business research, 117, 284.
- Dorfman, M.S. (2003). Introduction to Risk Management and Insurance. (7th edn). Prentice Hall.
- European Parliament (2016).
- Ghatak, S. (2010). Micro, Small and Medium Enterprises (MSMEs) in India: An appraisal. Retrieved January 2, 2014, from www.legalpundits.com/Content_folder/SMEArti150610.pdf
- Hasanat, M. W., Hoque, A., Shikha, F. A., Anwar, M., Hamid, A. B. A., & Tat, H. H. (2020). The Impact of Coronavirus (Covid-19) on E-Business in Malaysia. Asian Journal of Multidisciplinary Studies, 3(1), 85-90.
- Janene Marasciullo, “Businesses May Have Insurance that Lessen The Economic Impact of COVID-19” (March 23, 2020; Workforce Bulletin). Available at https://www.workforcebulletin.com/2020/03/23/businesses-may-haveinsurance-that-could-lessen-the-economic-impact-of-covid-19/. Accessed on April 22, 2020. 13 Ibid.
- Kee-Luen, W., Thiam-Yong, K., & Seng-Fook, O. (2013, February). Strategic planning and business performance: A study of SMEs in Malaysia. In Proceedings of 3rd Asia-Pacific Business Research Conference (pp. 25-26).
- Koshle, H., Kaur, R., & Basista, R. (2020). Breakdown of Business and Workers in India: Impact of Corona Virus.
- Mahmudova, Leyla, and Judit Katonáné Kovács. 2018. Definitining the performance of small and medium enterprises. Network Intelligence Studies 6: 111–15.
- Miller, W., Vigdor, E. R., & Manning, W. G. (2004). Covering The Uninsured: What Is It Worth? An attempt to place a value on what it costs a person, and society, when health insurance is lacking. Health Affairs, 23(Suppl1), W4-157.
- National SME Development Council (NSDC), 2014.
- Salleh, F., Kassim, D. N. H. A., Yazid, A. S., & Rashid, N. (2018). Consumer Behaviour and Insurance Claim Fraud in Malaysia. International Journal of Academic Research in Business and Social Sciences, 8(12).
- Salleh, F., Palaniappan, S., Theng, I.L.P., Helmi, H.N.M., Hamid, A.A., Kassim, N.M. (2020). A review on risk management implementation in the construction industry. Journal of Critical Reviews, 7 (11), pp. 562-567. DOI: 10.31838/jcr.07.11.102
- Salleh, F., Khamarulzaman, M.H., Azlan, M.A.M., Sharazi, M., Mustazar, M., Hamzah, N.A., Zainol, N.A. (2020). Manufacturer's demand for liability insurance: A critical review. Journal of Critical Reviews, 7 (11), pp. 577-582. DOI: 10.31838/jcr.07.11.105
- Small Medium Enterprise Corporation (2020).
- Thomas, R., Lotfi, T., Morgano, G. P., Darzi, A., & Reinap, M. (2020). Update Alert 2: Ventilation Techniques and Risk for Transmission of Coronavirus Disease, Including COVID-19. Annals of internal medicine.
- Tucker, H. (2020). Coronavirus bankruptcy tracker (Doctoral dissertation, these major companies are failing amid the shutdown. Forbes).
- World Health Organization (2020).
- Article View: 23
- PDF Download: 25