By Ng Chee Yong, Executor Director, CC Advisory Sdn Bhd – Fee-based Financial Planning Centre
The Covid-19 pandemic is rocking the global economy unlike anything seen before. With countries enforcing lockdowns resulting in business and borders getting shut temporarily, things are not looking particularly healthy for markets everywhere.
According to the United Nations Conference on Trade and Development (UNCTAD) the economic uncertainty the corona virus has sparked will likely cost the global economy $1 trillion in 2020 and they are calling on governments to take urgent steps to reduce the economic impact.
The global population too currently concur with this assessment. New research by the World Economic Forum revealed that people see coronavirus as a greater threat to the economy than to their health with rising anxieties over personal financial exposure, including employment.
An initial assessment by the International Labour Organization on the impact of Covid-19 suggests that the pandemic could increase global unemployment by almost 25 million. Malaysia too is unlikely to be spared the rod.
According to multiple surveys, an estimated 10% of small and medium enterprises (SME) in Malaysia are facing bankruptcy due to business disruptions and economic turmoil. Some mitigation can be done by utilising your cash reserve to pull through during this difficult period.
Another important measure SMEs can take is to reduce operating costs, which in turn reduces business expenditure. A key area of business expenditure that you can cut down is your insurance. This is where CC Advisory can assist you with our 3R strategy – Review, Revise and Restructure.
The idea behind this strategy is to increase the value of your coverage while maintaining the same premium cost and help you enjoy potential savings of up to 20%. This in effect is our corporate risk management strategy designed to help you through difficult and unpredictable times.
Revise – We will help revise your existing insurance protection plan in order for your business to achieve optimised protection.
Review – We will spend sufficient time and resources to review your present insurance policies with historic claims reports.
Restructure – We will guide you on restructuring your current insurance coverage to help you meet our 3R objectives by either lowering your cost or increasing your coverage.
Good times or bad, CC Advisory will always be at your service and you can count on us to ease your business conundrums and remain competitive in the face of not just the Covid-19 crisis, but any other unforeseen circumstances that may arise in future.
For more information, please contact +603-7985 9999 / 7972 6359 or email us at enquiry@ccadvisory.com.my.
