Most businesses said they were unable to pay beyond two months' worth of wages to their employees, while two-thirds of companies did not earn any income during Malaysia's movement control order (MCO).
A total of 53.4 per cent of companies said they would not last beyond two months if they provided paid or half-paid leave to workers during the MCO, according to an online survey of 4,094 companies nationwide from April 10 to May 1.
The poll by the Statistics Department showed 16.5 per cent said they would last less than a month.
A total of 67.8 per cent of companies said they did not make any money during the MCO.
The unemployment rate hit a 10-year high in March, with about 610,500 jobless, compared with 521,300 in the same month last year.
"The unemployment rate in March 2020 increased to 3.9 per cent.
"This high unemployment rate was mainly attributed to the adverse impact of the MCO on the labour market," said chief statistician Mohd Uzir Mahidin in a statement.
The unemployment figures are the highest since the 3.7 per cent recorded in June 2010.
The survey results reveal the pressures faced by employers after nearly two months of a partial lockdown since March 18, with Malaysia closing its borders and shuttering schools and non-essential businesses.
The debate over how quickly lockdown measures should be lifted, and by how much, is ongoing.
On Thursday, 57 chambers of commerce and industry associations in Malaysia said it was "critical for businesses to resume operations nationwide", as they took an opposite stance to nine states that initially rebuffed the federal government's call to reopen most businesses from Monday.
On Thursday, Minister in the Prime Minister's Department for Economy Mustapa Mohamed said the government was forced to restart the economy as the number of unemployed people was projected to triple to 1.8 million, according to Bank Negara.
The highest unemployment rate ever recorded in Malaysia was 7.4 per cent in 1986.
Meanwhile, wholesale and retail sales value fell 5.7 per cent in March against the same period last year to RM103.2 billion (S$33.7 billion).
Businesses today are hopeful after the government began relaxing the MCO on Monday, including allowing some retail shops in malls to reopen as long as they follow mandatory coronavirus safety rules.
About 35 per cent of stores have opened this week in Kuala Lumpur's Pavilion mall in Bukit Bintang, with more expected to open gradually in the coming days, Pavilion KL's chief executive of retail Joyce Yap told The Straits Times.
However, some are still not optimistic about their future, like Mr Zainudin Kamsari, 38, who lost his job as a writer when his company decided to close during the MCO.
"I feel sad and uncertain about the future, I don't know how to support myself on a daily basis.
"I have sent out many job applications, but so far, no response."
