How Digital Coupons Help Fuel The Economic Recovery Post Covid-19

As the pandemic stabilizes in Asia, countries are slowly emerging from lockdowns and gradually easing social distancing measures to allow hard-hit businesses to restart operations. While societies are adapting to the new normal, there is an urgent challenge that governments face – how to quickly revive their economies and help small businesses in particular, to protect jobs and livelihoods.

- Liu Shangxi

In Malaysia, the government recently announced a RM35 billion short-term Economic Recovery Plan (ERP) to empower the people, propel businesses and stimulate the economy. The ERP – also known as PENJANA – is the fourth of six economic recovery phases outlined by the country under the 6Rs approach (Resolve, Resilience, Restart, Recovery, Revitalise and Reform), to address the pandemic and recover from the socioeconomic shortfall.

ROAD TO ECONOMIC RECOVERY

As one of the first countries to lift restrictions and restart its economy, the experience in China offers some food for thought on how the power of digital technology can be harnessed to aid recovery, especially for the hard-hit SMEs that lack the resources to overcome the pandemic impact on their own.

In March after lockdowns first ended in China, the average daily revenue among businesses in the retail, F&B and leisure and entertainment sectors was less than half of what they were making before the pandemic. Weak market demand is the biggest culprit, as consumers were reluctant to go out and participate in social activities. Moreover, the projected “revenge spending” did not happen, at least at the scale anticipated.

In Malaysia, the impact is even more pronounced as family entertainment centres including cinema and theme parks remained closed since the movement control order (MCO) began in March. Only in recent weeks did the National Security Council give green lights for these operators to resume their business from July onwards.