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In 2003, SARS caused an eventual 8,098 cases, resulting in 774 deaths reported in 17 countries, with the majority of cases in mainland China and Hong Kong (9.6% fatality rate) according to the World Health Organisation.

As of 31 January 2020, there were over 9,680 confirmed cases of the virus in mainland China, including 213 deaths, according to China’s National Health Commission (NHC). The number of cases grew by almost 2,000 from Thursday, a more than 26% increase. Within 1 month, Coronavirus cases has overtaken SARS virus in rate of infection, as the virus continues to spread globally.

Since Wuhan virus first came to public attention in late December 2019, the mysterious illness has slowly grown to impact global businesses and disrupt business and vacation travel plans, prompted downward revisions to economic forecasts, jeopardized the health of thousands of small businesses in Asia, and placed the response of the governments of China and ASEAN politically, economically and socially to various extents. Starbucks Corp. has closed 50% of the 2000 cafes in mainland China and Apple Inc. is factoring disruptions in its supply chain into its outlook.

Leisure Travel Reduction: Less revenue for airlines and tourism industry

In March 2003, SARS period, visitor arrivals in the fourth week of March have fallen by 57,400 or 30% from the corresponding period last year. This contributed to a 15% year-on-year decline in visitor arrivals for March 2003. Companies in tourism related industries will have to adjust their profit forecast in 2020 as the situation worsened in February 2020. The outbreak of Coronavirus may also result in the postponement of concert tourism events and exhibitions.

Retail Sales: Reduction in Retail Sales but further increase on online e-commerce

Retails sales has been decreasing since the start of e-commerce. With the Wuhan virus, more consumers will opt for online shopping. Company should be quick to adjust their e-commerce strategy before the revenue from retail sales dips even lower. More emphasis being on recruitment of drivers or third-party logistic firm.

Corporate Travel Curtailed: More Videoconferencing

Coronavirus has had a particularly devastating effect on business travel to and from China. Curtailment of business travel will become permanent to save money since the usage of Skypes, Google Hangout and We Chat replace the need of traditional face to face meeting. Company should use this opportunity to explore more efficient way to communicate with partners and clients globally.

Digital Business Process: More Cloud Accounting Solution

Sharing data is also less worrisome employees are grounded at home or in their home countries. Cloud accounting solutions allow employees in various countries and difference departments to access the same data and the same version of the software. With cloud accounting, it’s also easier to get real-time reporting and brilliant intelligence throughout your organization.

For advice regarding Cloud Accounting and how this can help you meet your current situation, please do not hesitate to contact the team on +65 8366 3660 now.

For customers with innovative ideas to share online, please do not hesitate to contact the team on +65 9699 6768 now.

 

Photo: AFP