QUESTION 1 It is without a doubt that the COVID-19 situation has impacted global markets. It is an unprecedented event and many including businesses have been taken by complete surprise with the way things have been unfolding. For example, the global aviation

sector is forced to scale back their operations as people are no longer travelling. Non- essential businesses including real estate, construction, automotive, travel agencies

and retail outlets have been forced to close. Many businesses are now finding it hard to keep up with their monthly expenses. To help ease the burden, Bank Negara Malaysia (BNM) announced a six-month moratorium period for loans and mortgages. However, even with the relief from lenders, it is envisaged that many individuals and businesses will still struggle to make ends meet. It is no longer business as usual, and the seriousness of the domino effect towards the end value chain like households, must be recognized. When households are no longer spending, thats when more businesses start to fail.

(Source: Adopted from Deloitte Advisory News Year)

Based on the above statement, you are required to: a) Discuss FIVE (5) possible impacts of the COVID-19 19 pandemic on the overall financial performance of non-essential companies in Malaysia. (20 marks) b) As an investor, evaluate FIVE (5) financial and risk management strategies that can be adopted by companies in Malaysia to avoid the impact of the COVID-19 -19 pandemics.