Amidst the Covid-19 pandemic and also with the extended movement control order (MCO), businesses are facing challenging and stressful times ahead. In order to sustain, some of the local corporates are tightening their belts to conserve cash flow and ensure business continuity post Covid-19.
One of the major corporation group is Berjaya Corporation Bhd which has begun austerity measures to downsize and slash salaries to mitigate the impact of the Covid-19 pandemic.
According to the memo sighted, the measures will take effect from April 1 to June 30 for all companies in the group which include salary reduction percentage exercise based on the employee’s salary range bracket, and a reduction of fixed monthly allowances.
In addition, employees are required to take unpaid leave or annual leave every Friday from May 8-June 30, and the offices of Berjaya subsidiary companies will be closed on three Fridays a month until June 30.
Berjaya executive chairman Vincent Tan said the group management will discontinue the austerity measures and evaluate the reinstatement of the salary and monthly allowances upon assessing the recovery on the Group’s business and revenue.
“However, the austerity measures may be extended if the government imposes further MCO extension,” Tan said.