KUALA LUMPUR: About 70% of Malaysian companies do have a business continuity plan or a crisis management plan to deal with or mitigate the effects of a global pandemic such as COVID-19, according to a poll by the Institute of Corporate Directors Malaysia (ICDM).
However, the poll highlighted that only 62% of these companies had started implementing their plans, while 21% admitted that their organisations did not have any contingency plan but are in the midst of developing one in response to the Movement Control Order (MCO).
Of those with a business continuity plan or crisis management plan, only 17% demonstrated confidence in its effectiveness, while 70% acknowledged that their plans have areas for improvement in adapting to the evolving Covid-19 scenario.
The remaining 13% felt that their current plans are inadequate in addressing the impact to their businesses and need to be reviewed.
A total of 93% of the respondents agreed to the notion that businesses are bracing for a much more severe impact following the extension of the MCO to mid-April, as they believe the prolonged pandemic would see further disruptions to the Malaysian economy.
In a statement yesterday, ICDM president and chief executive officer Michele Kythe Lim described the present situation as unprecedented for businesses in Malaysia.
She said the speed of infection was forcing organisations to relook and reconsider their business models, strategies as well as their product and service offerings.
“Being well-equipped with the right tools and knowledge is critical to safeguard the welfare of their people and the sustainability of their businesses.
“Now more than ever, boards and directors need to urgently act as any further inaction will only prolong the decline of the business, said Lim.
She emphasised that this is a crucial time for companies to assess their business contingency plan to ensure that their business is able to withstand the crisis, adding that the boards need to realise that crisis management should start a long way before a crisis hits the company.
“It should be an integral part of the company’s risk mitigation measures and cannot be reactive, ” she added.
This article first appeared in Bernama, on April 02, 2020.
Photo by Nick de Partee on Unsplash.