LESSONS FOR THE BIZ COMMUNITY
Q: In your view, how should the authorities balance the twin imperatives of safety and the economy in light of the COVID-19 crisis?
A: While the government acted swiftly and based its decisions on scientific advice, at this juncture we should be careful that the precautionary measures don’t cause more harm to public health and the economy than the virus itself.
We should consider our ability to devise methods to restart the economy with the objective of increasing the incomes of daily wage earners and other low income groups. Failing to do so may ultimately precipitate a situation that us more dangerous to society than the COVID-19 itself.
As such, while the state response should continue to operate guided by scientific evidence in the interest of public health, it must look at a guarded reopening of the economy.
In the tea industry, plantations and factories are operating under physical distancing guidelines with the support of public health inspectors and law enforcement officers who have actively been engaged in estates, allowing for some resumption of activity unlike other key areas of the national economy.
Similarly, as the economy begins to reopen, it is incumbent on businesses to implement the guidelines established by PHIs and medical officers.
Q: What is the outlook for jobs and employment in the medium term? And how should the authorities address the prospect of rising unemployment?
A: As a grocery product, tea is expected to be minimally affected as consumers view it as essential product. Yet, while the tea industry won’t face the same level of unemployment and losses as the apparel industry for instance, stakeholders should address some of the longer-term issues that threaten the Ceylon Tea product.
The virus has pressured the industry and economy in such a way that it has lifted the barrier to entry for lower cost, lower quality competitors to Ceylon Tea. In the post-COVID environment, these competitors will revive their strategies and compete with Ceylon Tea with renewed aggression.
In anticipation of this, the government should create a national strategy for export commodities like Ceylon Tea (and others like cinnamon) to seize the opportunity for differentiation and appeal to shifting consumer behaviour at the global level.
Q: How do you see the ‘new normal’ for business panning out?
A: COVID-19 has exposed businesses without the necessary fundamentals in terms of capital, infrastructure and business practices worldwide. It has halted both the modern internet start-up as well as larger companies ,which have not built the adequate fundamentals. As a result, the ‘new normal’ will require a return to certain fundamentals that prioritise caution in business operations and financial stability.
Between the 1990s and the crash of 2008, we saw businesses operating recklessly; yet, the 2007/08 financial crisis didn’t rectify many of the very factors that led to the crash in the first place. In the wake of COVID-19 however, businesses will have to earnestly rethink reinvestment, infrastructure and systems procedures, as well as the sustainability of their actions.
There will be a positive direction in the workspace. As travel will be limited for some time, companies have been forced to adopt underutilised programmes like Microsoft SharePoint for collaboration. This digital workspace has shown that while you can’t cultivate a business relationship with a supplier or customer except in person, you can keep business productive.
As lockdown eases, the private and public sectors should consider the use of these digital platforms and reconsider old practice of burning petrol in traffic to get to physical meetings.
Through COVID-19, the business community has learned the critical importance of collaboration between academics, public sector officials and the private sector in responding to challenges. While we will return to the same old challenges of socioeconomic inequality and global warming in the post-COVID world, we’ll do so with the knowledge that we possess the capacity to make collaborative efforts to solve problems.
If any business hasn’t seen the opportunity that’s been created over recent times in the face of COVID-19, they may not have the foresight to operate in the post-COVID world.
ABOUT LMD’S A LISTERS
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