Covid-19: Analysis on financial wellbeing during the implementation of Movement Control Order in Malaysia

Siti Nurul Munawwarah Roslan, Kastury Gohain, Dayangku Azriani Awang Ismail, Vikniswari Vija Kumaran, Mohd Khairi Ismail

Abstract


The Malaysian people’s well-being has suffered as a result of COVID-19 pandemic. The welfare of Malaysians has also been impacted by the pandemic, as the Malaysian government has decided to implement Movement Control Orders (MCO) to prevent the virus from spreading throughout the country. Many Malaysian households’ financial well-being has suffered as well due to  the crisis consequences. Therefore, this study concentrated on the subjective financial well-being analysis of Malaysians during the implementation of the Movement Control Order (MCO). This is a quantitative study with 293 respondents, 163 of whom were from the B40 group and 130 from the M40 group. The descriptive analysis and Structure Equation Modelling (SEM) technique were used in the data analysis (SEM). The study found that the impact of expenses on financial well-being is greater in the “B40 income group” than in the “M40 income group.” To support the financial well-being of B40 and M40 income groups, the government should implement an effective  targeted policies, programmes, and incentives. Following the implementation of MCO in Malaysia, future research should focus on Malaysian households’ financial well-being aspect.


Keywords


COVID-19; financial well-being; Movement Control Order (MCO); Malaysia

Full Text:

PDF

References


Ali, A., Rahman, M. S. A., & Bakar, A. (2014). Financial satisfaction and the influence of financial literacy in Malaysia. Social Indicators Research,120(1), 137-156

Barrafrem, K., Västfjäll, D., & Tinghög, G. (2020). Financial well-being, COVID-19, and the financial better-than-average-effect. Journal of Behavioral and Experimental Finance, 28, 100410.

Brüggen, E. C., Hogreve, J., Holmlund, M., Kabadayi, S., & Löfgren, M. (2017). Financial well-being: A conceptualization and research agenda. Journal of business research, 79, 228-237.

Brown, S., & Gray, D. (2016). Household finances and well-being in Australia: An empirical analysis of comparison effects. Journal of Economic Psychology, 53, 17-36.

Cheng, H. Y., Jian, S. W., Liu, D. P., Ng, T. C., Huang, W. T., & Lin, H. H. (2020). Contact tracing assessment of COVID-19 transmission dynamics in Taiwan and risk at different exposure periods before and after symptom onset. JAMA internal medicine, 180(9), 1156-1163.

CoR-OECD (2020). CoR-OECD Survey Questionnaire: “How is COVID-19 affecting regions and cities?”, https://cor.europa.eu/en/news/Pages/ECON-cor-oecd-survey-covid-19.aspx.

Department of Statistics Malaysia. (2020). Household Income & Basic Amenities Survey Report 2019.

Dolan, P., Peasgood, T., & White, M. (2008). Do we really know what makes us happy? A review of the economic literature on the factors associated with subjective well-being. Journal of economic psychology, 29(1), 94-122.

Falahati, L., & Paim, L. (2011). Gender Differences in Financial Well-being. Financial Socialization and Financial Knowledge among College Students, Life Science Journal, 8(3), 173-178

Fünfgeld, B., & Wang, M. (2009). Attitudes and behaviour in everyday finance: evidence from Switzerland. International Journal of Bank Marketing.

Guillen-Royo, M. (2008). Consumption and subjective wellbeing: Exploring basic needs, social comparison, social integration and hedonism in Peru. Social Indicators Research, 89(3), 535-555.

Hair, J. F., Black, W. C., Babin, B. J., Anderson, R. E., & Tatham, R. L. (2014). Pearson new international edition. Multivariate data analysis, Seventh Edition. Pearson Education Limited Harlow, Essex.

Hansen, T., Slagsvold, B., & Moum, T. (2008). Financial satisfaction in old age: A satisfaction paradox or a result of accumulated wealth?. Social Indicators Research, 89(2), 323-347.

Hanspal, T., Weber, A., & Wohlfart, J. (2020). Income and wealth shocks and expectations during the covid-19 pandemic (No. 8244). CESifo Working Paper.

Headey, B., & Wooden, M. (2004). The effects of wealth and income on subjective well‐being and ill‐being. Economic record, 80, S24-S33.

Howell, R. T., Kurai, M., & Tam, L. (2013). Money buys financial security and psychological need satisfaction: Testing need theory in affluence. Social Indicators Research, 110(1), 17-29.

Hsu, T., Tam, W. Y. L., & Howell, R. T. (2015). Do you feel financially secured? The investigation of economic indicators of financial well-being.

Ismail, M. K., Kumaran, V. V., & Munawwarah, S. N. (2021). COVID-19 Outbreak: An Analysis of Malaysian Household Income Class During Movement Control Orders (MCO). Asia Proceedings of Social Sciences, 7(1), 26-29.

Joo, S. H., & Grable, J. E. (2004). An exploratory framework of the determinants of financial satisfaction. Journal of family and economic Issues, 25(1), 25-50.

Karim, W., Haque, A., Anis, Z., & Ulfy, M. A. (2020). The movement control order (MCO) for covid-19 crisis and its impact on tourism and hospitality sector in Malaysia. International Tourism and Hospitality Journal, 3(2), 1-7.

Mahdzan, N. S., Zainudin, R., Abd Sukor, M. E., Zainir, F., & Wan Ahmad, W.M. (2020). An exploratory study of financial well-being among Malaysian households, Journal of Asian Business and Economic Studies, 27(3), 285-302. https://doi.org/10.1108/JABES-12-2019-0120

Mody, A., Ohnsorge, F., & Sandri, D. (2012). Precautionary savings in the great recession. IMF Economic Review, 60(1), 114-138.

Obućina, O. (2013). The patterns of satisfaction among immigrants in Germany. Social indicators research, 113(3), 1105-1127.

O'Neill, B., & Xiao, J. J. (2012). Financial behaviors before and after the financial crisis: Evidence from an online survey. Journal of Financial Counseling and Planning, 23(1).

Plagnol, A. C. (2011). Financial satisfaction over the life course: The influence of assets and liabilities. Journal of Economic Psychology, 32(1), 45-64.

Ramli, N., & Zawawi, M. (2021). The Covid-19 Pandemic and Its Repercussions on the Malaysian Tourism Industry. Journal of Tourism and Hospitality Management, 9(3), 135-145.

Ross, C. E., & Huber, J. (1985). Hardship and depression. Journal of Health and Social Behavior, 312-327.

Sahi, S. K. (2013). Demographic and socio-economic determinants of financial satisfaction: A study of SEC-A segment of individual investors in India. International Journal of Social Economics, 40(2), 127-150

Taft, M. K., Hosein, Z. Z., Mehrizi, S. M. T., & Roshan, A. (2013). The relation between financial literacy, financial wellbeing and financial concerns. International journal of business and management, 8(11), 63.

Tang, K. H. D. (2020). Movement control as an effective measure against Covid-19 spread in Malaysia: an overview. Journal of Public Health, 1-4.

Unnikrishnan, A., & Figliozzi, M. A. (2020). A study of the impact of COVID-19 on home delivery purchases and expenditures.

World Health Organization. (2020). Coronavirus disease 2019 (COVID-19): situation report, 82.


Refbacks

  • There are currently no refbacks.