The Immediate Impacts of COVID-19 on Low-Income Households: Evidence from Malaysia

This study unravelled the economic impacts of the coronavirus disease 2019 (COVID-19) on low-income households. The asymmetric economic impacts of the pandemic that are biased towards the poor, young, and women have been well established. However, micro evidence on the poor is limited, thus demanding detailed understanding to design an effective targeted assistance. In this study, data were gathered from face-to-face interviews using a sampling frame provided by the Department of Statistics Malaysia (DOSM). Online data collection was dismissed to ensure all low-income households had the same chance to participate, as some might have no online access. Logistic regressions were estimated to identify the characteristics of households that suffered job loss and income reduction. The findings revealed that one in ten households experienced job loss during the pandemic, while one third survived with lower income. The extent of income reduction was rather severe, as the pandemic had reduced income generation by more than half among the affected households. The regression outcomes showed that the higher-income households among the low-income households had higher chances of experiencing income reduction. A similar scenario was noted for less-educated households. Notably, the adverse impacts were not biased toward female-headed households, as is widely perceived. There was no evidence that economic sectors explained job losses, but households involved in the agriculture, domestic, and transportation sectors had higher chances of suffering from income reduction. These results suggest that monetary government assistance should not rely on general indicators, such as female-headed households and below-poverty-line income (PLI). Instead, a more effective measure is to look at other characteristics, such as employment type, education level, and job sectors.

Impact of financial behaviour on financial well-being: evidence among young adults in Malaysia

The high cost of living and prolonged lockdowns due to the COVID-19 pandemic made the financial well-being of individuals vulnerable, especially young adults. This paper examines the impact of financial behaviour on financial well-being (FWB) among young Malaysians during the COVID-19 pandemic. The study collected variable data on financial literacy, financial behaviour, financial socialisation, self-control, financial technology and FWB. To collect a representative sample of Malaysian young adults, a multi-stage random sampling method was used, and 360 young adults aged 18-29 years old completed the questionnaires. Structural equation modelling was adopted to investigate the factors influencing young adults' FWB. The empirical findings revealed a significant mediating effect of financial behaviour in the relationships between financial literacy, financial socialisation, self-control, financial technology, and FWB. The research concluded that the mediation analysis yields a clear and firm conclusion that financial behaviour is important in empowering young adults' FWB. Thus, the present study adds value to the existing literature on the relationship between financial behaviour and FWB. Furthermore, the paper's findings will assist government agencies and non-governmental organisations in developing outreach programmes for young adults per the strategies outlined in the Twelfth Malaysia Plan and the aspirations pledged in the Malaysian Youth Policy 2015-2035.

Consumers' Continued Intention to Use Online-to-Offline (O2O) Services in Omnichannel Retail: Differences between To-Shop and To-Home Models

Online-to-offline (O2O) commerce is a specific form of omnichannel retailing, wherein consumers search and purchase online and then consume offline. There are many different O2O models, and new O2O businesses are emerging during the COVID-19 pandemic;they can be cate-gorized into two types of O2O services: to-shop and to-home. However, few studies have focused on consumer behavior in a comprehensive O2O scenario, and no study has attempted to compare the differences between to-shop and to-home consumers. Therefore, this study aimed to propose a universal model to predict consumers' continued intention to use O2O services and to compare the differences between to-shop and to-home O2O in terms of factors influencing consumer behavior. A cross-sectional survey was conducted, and the PLS-SEM was used for data analysis. The basic SEM results indicated that habit, performance expectancy, confirmation, and offline facilitating conditions are the main predictors. The multigroup analysis showed differences between to-shop and to-home consumers regarding hedonic motivation, price value, and perceived risk. The study suggests that marketers and designers in various O2O scenarios can use the framework to build their business plans and develop different marketing strategies or sub-platforms for to-shop and to-home consumers. © 2023 by the authors.

Social capital, entrepreneurial skills, and business performance among rural micro-enterprises in times of crisis

The unprecedented COVID-19 crisis has adversely affected enterprise performance, which has led to inequalities, particularly for rural micro-entrepreneurs. Therefore, ensuring business survival through social capital and entrepreneurial skills as coping strategies for the rural micro-entrepreneurs is important to sustain their livelihoods. Both coping strategies can enhance the survival rate during a crisis, but there is limited knowledge on how enterprise performance of rural micro, Small and Medium-sized Enterprises (SMEs) can be improved. This study examined the linkages between social skills, entrepreneurial skills (knowledge, experience), and enterprise performance during a crisis. The Federal Land Development Authority (FELDA) Triangle Village was selected as a proxy for the rural population, and sampling frame of 543 micro-entrepreneurs was obtained from the Local District Office. A total of 150 questionnaires were distributed in a systematic random order based on a minimum sample size of 85 calculated using the G*Power statistical tool. The final 134 usable samples were analyzed using Structural Equation Modelling (SEM). The results ascertained that the direct positive effect of social capital on enterprise performance was significant (β = 0.521, t = 8.060, p < 0.001) and that social capital had a specific and indirect effect on enterprise performance through entrepreneurial skills (β = 0.520, LCL = 0.378, UCL = 0.651, p < 0.001). The study also reported the full mediating effect of entrepreneurial skills on the social capital-enterprise performance relationship. This study proposes practices to develop adaptive entrepreneurs that can adapt to crisis challenges. © Siti Fahazarina Hazudin, Muhammed Fazli Sabri, Mohd Aidil Riduan Awang Kader, Muhammed Soffiq Saripin, Mohd Rozaimy Ridzuan, 2022.

Payment Behaviour Among B40 Households During COVID-19 as a Mediator Towards Financial Well-Being

Households in the B40 income category who are economically disadvantaged would be much affected during COVID-19, where the Movement Control Order (MCO) has limited the economic activity of households and businesses. They may find difficulties in loan repayments during the pandemic. During the order, the use of FinTech would facilitate payments. Hence, this study aims to determine the mediation effect of payment behaviour in the influence of FinTech usage on financial well-being among 2,125 respondents from B40 households in Malaysia via multi-stage random sampling and influential factors on financial well-being were also determined in this paper. Self-administered questionnaires were distributed at the respondents’ residences. The mediated financial well-being model was a fit model based on the R square of 28.4 per cent;thus, the research findings have practical significance. Significant factors in the model comprised of income, savings, net-worth, health, internal locus of control, financial stress and FinTech usage in the first model. In the second model, payment behaviour mediated the effect of FinTech usage on financial well-being among B40 households. The models were valid models based on the significant F statistics. Prudent payment behaviour should be practised to elevate financial well-being. Though FinTech facilitates payments, a good financial situation would not be achieved without proper payments made for loans. Debt advisory services will be sought to assist households in improving their debt repayment practices. © 2022, Malaysian Consumer and Family Economics Association. All rights reserved.

The role of information quality, trust and anxiety on intention to buy food supplements at the time of COVID-19 outbreak

Purpose The purpose of this study is to analyze the factors affecting consumer`s intention to buy food supplements during COVID-19 pandemic using the expanding theory of planned behavior model. The variables of perceived information quality, trust and anxiety are integrated in the model of this study. Design/methodology/approach A total of 553 valid questionnaire responses were collected via an online survey in the epicenter of the pandemic in Indonesia, such as Jakarta and surrounding cities. To evaluate the causal links between latent variables, structural equation modeling was adopted using LISREL software. Before the research hypothesis had been tested, validity and reliability analysis was carried out to make sure the measurement can be used. Findings The findings indicate that perceived information quality influences trust and anxiety, and then both of them influence attitude toward food supplements. Moreover, the intentions to buy food supplements are determined by the consumer`s attitude. Research limitations/implications This study assumes all consumers have similar access to information because they are living in the greater Jakarta. Nevertheless, in fact, the access of information is not similar between age groups and locations. Future research may wish to differentiate evaluations of a full-information group from those of the limited-information groups. Originality/value This study provides a model of consumers` buying intentions toward food supplement products in the time of a health crisis such as the COVID-19 pandemic as a novelty. The implications of this study provide meaningful direction for marketing decisions and policy interventions in developing food supplement industries.

Identifying the Financial Status Risk Factors for Single Mothers During the COVID-19 Pandemic

Many uncertainties occur across the population’s life cycle, especially among vulnerable groups. Macroeconomic and microeconomic factors, including events such as the COVID-19 pandemic and socioeconomic characteristics, may impact households. This study identified the risk factors influencing the financial status of single mothers. The risk factors differentiated single mothers based on their financial status. A cross-sectional survey was conducted using simple random sampling that targeted 465 single mothers in the Malaysian state of Negeri Sembilan. The analysis of the 311 completed questionnaires resulted in income appearing as the highest risk factor, while other significant risk factors were;job sector, number of dependents and housing type. These factors significantly differentiated the sampled single mothers' financial status from the aspects of savings and financial well-being. Insufficient savings to endure the government imposed Movement Control Orders (MCO's), designed to limit the spread of COVID-19, strained them financially. Thus, financial assistance should be focused on single mothers with the following risk factors: those earning meagre incomes, working in the private sector or running their own businesses. Hence, this study identified the most financially at-risk single mother households vulnerable to the COVID-19 pandemic © 2021. International Journal of Economics and Management. All Rights Reserved.