COST CONTROL MANAGEMENT
updated : 23rd April 2020
Item
1
Company Name
Tung Shin Hospital
Cost control measure
Paycut for employees salary > RM4K
Effective
TBA
Industry
Medical
Headcount
501 - 1000
Revenue
N/A
2
Shorter work week.
Scheduled to be on leave on alternate days.
Pay cuts 10% at senior management
Apr-20
Automotive Industry
201-500
N/A
3
Volkswagen
Malaysia
AirAsia
TBA
Aviation
20,000+
RM12.4 billion
4
Malaysia Airlines
Apr-20
Aviation
N/A
N/A
5
Malindo Airlines
Apr-20
Aviation
2001 - 5000
N/A
6
Experian
Senior Management pay cut by 10%
No longer receive allowances
50% pay cut for the next few months
Reduce the number of working days up to
15 month
Reduce benefit
Apr-20
3,900/APAC
7
8
Fave (Groupon)
Herriot Watt
University
Apr-20
Apr-20
51 - 200
51 - 200
USD422
million/APAC
N/A
N/A
9
Sunway University
Apr-20
Education
501-1000
N/A
10
Nottingham
University
Samsung
Electronic
Paycut of 30%
Freeze headcount; student target drop by
30%
Cost control management on expense
Freeze headcount
Cost control management on expense
Freeze headcount
Cost control management on expense
Reduce overtime for operations
No overtime for office base
Office staffs work from home
Reduce travelling allowance
Consumer reporting
agency company
eCommerce Industry
Education
Apr-20
Education
201 - 500
N/A
Apr-20
Electronic
manufacturing
1 - 50
N/A
Apr-20
47250/APAC
Unpaid leave
Allow to utilize AL 2021 in adv.
Shorter work week
Apr-20
Electronic
manufacturing
FMCG
2001 - 5000
Euro7.88
billion/APAC
N/A
Jun-20
FMCG
2,600
RM4.08 billion
Unpaid leave from 15/4 till 30 June
Apr-20
Hotel
201-500
N/A
30% pay cut
Business closure
Voluntary Redundancy Program
Compulsory Redundancy Program
Freeze salary increase
Pay cut on salary and housing allowance
reduction
Closure/merging of business centre
TBA
Hotel
N/A
N/A
Apr-20
Oil & Gas
501 - 1000
USD118
million
Apr-20
Oil & Gas
83,000/Global
Remove the contractors first
No increment or bonus this yr.
15% pay cut for the snr mgt
Freeze hiring and no replacement for
resignee
May-20
Oil & Gas
200
USD344,877
mil./Global
USD3,657
mil./Global
11
12
17
Schneider Electric
Malaysia
Domino's
Malaysia
Times Publishing
(F&N)
Estadia & Hatten
Place
Northern Hotel
Group
Petrofac
18
Shell
19
Subsea 7
13
14
15
16
COST CONTROL MANAGEMENT
Item
20
Company Name
TechnipFMC
21
McDermot
22
Carl Zeiss Vision
23
PWC
24
25
Knight Frank
Property Mgmt.
Blu Inc
26
Genting
27
Shriro Malaysia
28
LAC Medical
29
CVS Medical
30
UMedic Healthcare
31
IDS Medical Systems
32
Limkokwing
University
updated : 23rd April 2020
Cost control measure
Freeze headcount
Cost control management on expense
Headcount reduction for completed
project
Encouraging
50% AL utilization
100% AL utilization
Headcount reduction
Effective
May-20
Industry
Oil & Gas
Headcount
4,860
Revenue
USD4,12 mil.
TBA
Oil & Gas
2,000
N/A
Optical (Sales &
Services)
40
Euro 6.4
bil./Global
Professional services
N/A
Allowances cut for office base
May-20
Property
1001 2000
201 - 500
Pay cut
Apr-20 to
Jun-20
Apr-20 to
Jun-20
Publishing Industry
201 - 500
N/A
Tourism & hospitality
services
10,001+
N/A
TBA
51 - 200
N/A
TBA
Fashion, consumer,
audio visual,
industrial,
construction,
photography, medical
and sports.
Medical
1 - 50
N/A
TBA
Medical
N/A
N/A
TBA
Medical
1 - 50
N/A
TBA
Medical
51 - 200
N/A
TBA
Education
501 - 1,000
N/A
Pay cut
a.VP & above 20%
b. AVP – 15%
c. Manager & AM – 1 day unpaid
leave/week
d.AM & below – no variation
Pay cut between 3%-5% (based on grades)
Fixed allowance deduction – either 50% or
100% (based on JD)
Pay cut between 3%-5% (based on grades)
Fixed allowance deduction – either 50% or
100% (based on JD)
Pay cut between 3%-5% (based on grades)
Fixed allowance deduction – either 50% or
100% (based on JD)
Pay cut between 3%-5% (based on grades)
Fixed allowance deduction – either 50% or
100% (based on JD)
Pay cut between 3%-5% (based on grades)
Fixed allowance deduction – either 50% or
100% (based on JD)
Paycut based on salary range:
1,500-3,000 - 0%
3,501-5,000 - 10%
5,001-7,000 - 15%
7,001-9,000 - 20%
9,001-13,000 - 25%
13,001-20,000 - 30%
20,001-25,000 - 35%
25,001 & above - 40%
Note : Source for headcount and revenue from Jobstreet.
May-20
Sept-20
TBA
N/A
COST CONTROL MANAGEMENT
updated : 23rd April 2020
COST CONTROL MANAGEMENT
updated : 23rd April 2020
COST CONTROL MANAGEMENT
updated : 23rd April 2020
Article: Headcount freezes, layoffs, pay-cuts, and more: Malaysian employers on the impact of the
MCO
Source: https://www.humanresourcesonline.net/headcount-freezes-layoffs-pay-cuts-and-more-malaysianemployers-on-the-impact-of-themco/?utm_campaign=20200422_hrdaily&utm_medium=email&utm_source=MY&utm_content=topcontent
Based on survey done by the Federation of Malaysian Manufacturers from 6 April to 10 April, 419 Companies
participated, with a majority (89.5%) from manufacturing and manufacturing-related and support services. Out of
which:
- 53.7% were from non-essential product sectors;
- 63.9% of the essential product sectors managed to obtain approval to operate during the first and second
phases of the MCO.
More than 50% of the respondents said that their revenue had dropped by more than 50%:
- 44% may only be able to sustain their business with the current workforce for three months;
- 34.1% may only be able to sustain their business with the current workforce for one month.
What employers are saying about the MCO’s impact on employment
Working from home is found to be a challenge for many companies, due to:
- work processes that could not be performed remotely;
- not prepared with the necessary infrastructure to support employees working from home.
44% have employees working from home:
- 31.7% have 5-10% of employees working from home;
- 27% have less than 5% of staff working from home;
- 17% had more than 10-20% working from home.
24% were unable to work at all, with no employee being able to work from home.
Other likely cost-cutting measures in the next three to six months
Employers are likely to take the following cost-cutting measures, including:
Freezing headcount (67%);
Instituting unpaid leave (59%);
Removal of some non-contractual allowances and benefits (59%);
Forced annual leave (59%), reduction on workdays per week (39%);
Reduction in some benefits agreed in the collective agreement for the unionised companies (34%);
Reduction in hours of work per day (29%).
For companies that have to resort to pay-cuts, the likely implementation will be as follows:
Top management staff
37.8% are likely to cut pay in the range of >10-20%
22.7% are likely to cut pay in the range of >20-30%
Managerial-level staff
36% are likely to cut pay in the range of >10-20%
28% are likely to cut pay in the range of >5-20%
COST CONTROL MANAGEMENT
Executives
54% are likely to cut pay in the range of 5-10%
Non-executives
51.7% are likely to cut pay in the range of >5 to 20%
38.% are likely to cut pay in the range of <5%
updated : 23rd April 2020