While we foresee new businesses will mushroom following the paradigm shift brought about by the Covid-19 global pandemic, there will be certain sectors in the economy which will be ruled out of business or readjusted to a new equilibrium. Though the moratorium introduced by the Malaysian government will help bridge some difficult times, I opined that the following businesses will probably not fare as well:
Airbnb Operators and Owners
CEO of Airbnb Brian Chesky, was reported as having said: “It took us 12 years to build Airbnb, and we lost almost everything in four to six weeks”. Tourism activities including local tourists, will definitely decline as cross country borders remain closed for an unknown period. Local tourism is anticipated not to be able to fill the gap.
Landlords With Tenants In Tourism Related Industries
Business for tourism-related services for example ticketing agents, tours and transport companies will remain bleak, with some even facing the risk of foreclosure. Landlords renting units to these companies might face difficulty in terms of rental collection in the short term.
Landlords Relying On Student Accommodation Rentals
As colleges and universities move onto and continue with online learning, students from out-of-town now have the option of learning from their respective hometowns instead of physically renting rooms near their campuses – which has been the previous norm for those seeking tertiary education in capital cities. Apartments and houses situated near campuses which have been converted to student hostels previously will face a decline in occupancy rate.