When businesses could not sustain its operations, jobs will be lost. (how to pay mortgage?)

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We love to viral the news of some famous brands closing down here in Malaysia and the number of people losing their jobs. Then, someone will cleverly point out that the economy is bad because of this closure news. Never mind if these people could find jobs or that it’s actually the brand which was no longer competitive… Anyway, just wanted to let everyone know that people losing their jobs do not happen just to one country yeah. It could happen to any country. We learn about Hong Kong’s recent protests which started in June 2019.

When businesses are disrupted, it will usually try to carry on as long as possible. However, if businesses are affected badly, then they will have to take cost cutting measures. Usually it’s letting employees go. Fixed assets would be the last to go but people could be asked to leave and when business picks up again, they could rehire them. By the way, when jobs are lost, people lose a stable income and they may start to face issues with their property mortgages yeah.

Article in thestar.com.my Alexa Chow Yee-ping, managing director of AMAC Human Resources Consultants said, ‘It’s just too hard to survive.” He said that retail chains were trying their best to keep permanent staff despite the gloomy scene. About 20 to 30% of retailers were now starting to send full-time employees on unpaid leave to cut costs after having to let go part-time workers.

From October 1 will be the five-day “golden week” national day holiday but retailers will miss out because Hong Kong is unlikely to receive 1.2 million mainland tourists like 2018. Hong Kong has been hit by protests since June 9 and protestors have even arranged an online campaign called “Bye Buy Day HK” which basically asks Hong Kongers to spend less on Fridays and Saturdays and avoid retailers and companies which do not share their political views. Please do refer to a lot more details in the article in thestar.com.my here.

Let’s understand that businesses need profits in order to continue its operations. In Malaysia, it’s likely to be the competitiveness which will slowly ‘kill’ some brands. Just last week, I was at the closing down sale of Old Navy in 1 Utama. Bought a jeans for my son at just RM29.90, a far cry from it’s original price of over RM100. Somehow, people do not find it necessary to pay the usual prices for Old Navy and decided that there are so many other brands within the same mall which are selling at lower prices.

When sales falls, it’s going to be tough to keep sustaining the operations. I think it’s fortunate that these sales assistants could find jobs within the same mall. I could see quite a number of stores with the Hiring sign on them. Happy understanding and not many businesses could continue sustain days and weeks without sufficient sales.

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<Featured Image is courtesy of Stock Photos from SeventyFour>

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