Assessing labour market and supply chains disruptions during Covid-19 in Malaysia

The unprecedented global outbreak of COVID-19 has triggered severe impacts on the economy in Malaysia. Unlike previous crises, the COVID-19 crisis has induced disruption on both the supply and demand sides. The economic fallout due to COVID-19 has increased unemployment rates in the labour market...

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Main Author:	Hamzah, Heizlyn Amyneina
Format:	Thesis
Language:	English
Published:	2022
Subjects:	COVID-19 (Disease) - Economic aspects - Malaysia
Online Access:	http://psasir.upm.edu.my/id/eprint/114017/1/114017.pdf
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id	my-upm-ir.114017
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spelling	my-upm-ir.1140172024-12-02T08:07:39Z Assessing labour market and supply chains disruptions during Covid-19 in Malaysia 2022-12 Hamzah, Heizlyn Amyneina The unprecedented global outbreak of COVID-19 has triggered severe impacts on the economy in Malaysia. Unlike previous crises, the COVID-19 crisis has induced disruption on both the supply and demand sides. The economic fallout due to COVID-19 has increased unemployment rates in the labour market. This labour market disruption has translated into a rise in the loss of employment. The measures taken in curbing the spread of the COVID-19 pandemic have also significantly reduced the operating capacity of the businesses. This reduction in operating capacity has created a massive disruption in the supply chain. The disruption on both sides of the economy calls for an economy-wide assessment of the impacts of COVID-19 in Malaysia. Thus, the first objective of this work is to investigate the impacts of the labour market and supply chain disruption on the economy. The prolonged implementation of non-pharmaceutical interventions (NPI) that involve all sectors of the economy incurred high losses to the economy. In the future, sectors such as Agriculture and Mining and Quarrying that play a significant role in the supply chain should be prioritised and excluded from the measures. Hence, we have undertaken an analysis to determine the key sectors of the labour market and production. The determination of key sectors also provides information on the speed at which the impacts of disruption propagate from one sector to another. In achieving the first objective, the extended input-output modelling technique is utilised. This modelling technique is considered novel in that the model extended to integrate the real-time administrative data, Loss of Employment (LOE). The second objective is fulfilled by using the average propagation length (APL) technique. The APL technique assesses the forward and backward linkages of an economic sector and is built on the standard Leontief input-output matrix. The impacts of LOE due to the outbreak of COVID-19 on the economy are relatively small but the impacts of COVID-19 are significant when taking into consideration both the LOE and supply chain shocks. In the determination of key sectors, labour intensity plays a significant role. Visualisation of the production chain shows that the Manufacturing sector dominates the supply chain. Policy makers must identify the key sectors in the economy that should be excluded or lifted from the implementation of non-pharmaceutical interventions (NPIs). The current policy regarding the closure of the economy due to COVID-19 pandemic formulated by the Malaysian National Security Council (NSC) is inclined towards considering the health crisis impact over the economic crisis. Therefore, it is time for policymakers to consider this modelling as part of a supporting tool in evidence-based analysis to facilitate decision-making. COVID-19 (Disease) - Economic aspects - Malaysia 2022-12 Thesis http://psasir.upm.edu.my/id/eprint/114017/ http://psasir.upm.edu.my/id/eprint/114017/1/114017.pdf text en public http://ethesis.upm.edu.my/id/eprint/18070 masters Universiti Putra Malaysia COVID-19 (Disease) - Economic aspects - Malaysia Abd Rahman, Muhammad Daaniyall
institution	Universiti Putra Malaysia
collection	PSAS Institutional Repository
language	English
advisor	Abd Rahman, Muhammad Daaniyall
topic	COVID-19 (Disease) - Economic aspects - Malaysia
spellingShingle	COVID-19 (Disease) - Economic aspects - Malaysia Hamzah, Heizlyn Amyneina Assessing labour market and supply chains disruptions during Covid-19 in Malaysia
description	The unprecedented global outbreak of COVID-19 has triggered severe impacts on the economy in Malaysia. Unlike previous crises, the COVID-19 crisis has induced disruption on both the supply and demand sides. The economic fallout due to COVID-19 has increased unemployment rates in the labour market. This labour market disruption has translated into a rise in the loss of employment. The measures taken in curbing the spread of the COVID-19 pandemic have also significantly reduced the operating capacity of the businesses. This reduction in operating capacity has created a massive disruption in the supply chain. The disruption on both sides of the economy calls for an economy-wide assessment of the impacts of COVID-19 in Malaysia. Thus, the first objective of this work is to investigate the impacts of the labour market and supply chain disruption on the economy. The prolonged implementation of non-pharmaceutical interventions (NPI) that involve all sectors of the economy incurred high losses to the economy. In the future, sectors such as Agriculture and Mining and Quarrying that play a significant role in the supply chain should be prioritised and excluded from the measures. Hence, we have undertaken an analysis to determine the key sectors of the labour market and production. The determination of key sectors also provides information on the speed at which the impacts of disruption propagate from one sector to another. In achieving the first objective, the extended input-output modelling technique is utilised. This modelling technique is considered novel in that the model extended to integrate the real-time administrative data, Loss of Employment (LOE). The second objective is fulfilled by using the average propagation length (APL) technique. The APL technique assesses the forward and backward linkages of an economic sector and is built on the standard Leontief input-output matrix. The impacts of LOE due to the outbreak of COVID-19 on the economy are relatively small but the impacts of COVID-19 are significant when taking into consideration both the LOE and supply chain shocks. In the determination of key sectors, labour intensity plays a significant role. Visualisation of the production chain shows that the Manufacturing sector dominates the supply chain. Policy makers must identify the key sectors in the economy that should be excluded or lifted from the implementation of non-pharmaceutical interventions (NPIs). The current policy regarding the closure of the economy due to COVID-19 pandemic formulated by the Malaysian National Security Council (NSC) is inclined towards considering the health crisis impact over the economic crisis. Therefore, it is time for policymakers to consider this modelling as part of a supporting tool in evidence-based analysis to facilitate decision-making.
format	Thesis
qualification_level	Master's degree
author	Hamzah, Heizlyn Amyneina
author_facet	Hamzah, Heizlyn Amyneina
author_sort	Hamzah, Heizlyn Amyneina
title	Assessing labour market and supply chains disruptions during Covid-19 in Malaysia
title_short	Assessing labour market and supply chains disruptions during Covid-19 in Malaysia
title_full	Assessing labour market and supply chains disruptions during Covid-19 in Malaysia
title_fullStr	Assessing labour market and supply chains disruptions during Covid-19 in Malaysia
title_full_unstemmed	Assessing labour market and supply chains disruptions during Covid-19 in Malaysia
title_sort	assessing labour market and supply chains disruptions during covid-19 in malaysia
granting_institution	Universiti Putra Malaysia
publishDate	2022
url	http://psasir.upm.edu.my/id/eprint/114017/1/114017.pdf
_version_	1818586182191153152

Assessing labour market and supply chains disruptions during Covid-19 in Malaysia

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