FINAL REPORT - THE FINANCIAL IMPACT OF PANDEMIC COVID-19 TO EDUCATIONAL THE CASE STUDY OF PUBLIC UNIVERSITY IN MALAYSIA INDUSTRY

INTERNSHIP REPORT FINANCIAL IMPACT OF PANDEMIC COVID-19 NURUL HUSNA ATHIRAH BINTI AHMAD KAMSHOR

THE FINANCIAL IMPACT OF PANDEMIC COVID-19 TO EDUCATIONAL INDUSTRY THE CASE STUDY OF PUBLIC UNIVERSITY IN MALAYSIA NURUL HUSNA ATHIRAH BINTI AHMAD KAMSHOR 2017721219 BACHELOR OF BUSINESS ADMINISTRATION (HONOURS) FINANCE FACULTY OF BUSINESS AND MANAGEMENT UNIVERSITI TEKNOLOGI MARA CAWANGAN TERENGGANU JULY 2020

DECLARATION OF ORIGINAL WORK BACHELOR OF BUSINESS ADMINISTRATION (HONOURS) FINANCE FACULTY OF BUSINESS AND MANAGEMENT UNIVERSITI TEKNOLOGI MARA “DECLARATION OF ORIGINAL WORK” I, Nurul Husna Athirah Binti Ahmad Kamshor, (I/C Number: 9640217-06-5228) hereby, declared that: • This internship report has not previously been accepted in substance for any degree, locally or overseas, and is not being concurrently submitted for this degree or any other degrees. • This internship report is the result of my independent work and investigation, except where otherwise is stated. • All verbatim extracts have been distinguished by quotation marks and sources of my information have been specifically acknowledged. Signature: Date: 11 JULY 2020

Tables of Contents Acknowledgement ……………………………….….. I Who we are …………………………………………….. 1-3 4-5 Mission and Vision 6 Organization Chart Issues Identification ……………………………………. Issue I Issue II objectives and Research question … Research Scope of study ……………………………………………. 7 Significance of study ……………………………………. 8 Literature review …………………………………………. 9 Methodology ………………………………………………. 10 Findings and Analysis …………………………………… 11-13 Discussions ………………………………………………….. 14 Recommendations 15-16 Conclusions ………………………………………………….. 17-18 Self-Reflection ………………………………………………. 19-22 References ……………………………………………….…. 23 Appendices ……………………………………………….…. 24

ACKNOWLEDGEMENT Working in the Finance Division at International Islamic University Malaysia (IIUM) was a golden experience. During the four (4) weeks of internship, I learnt multiple discipline of work especially in finance and accounting as well as engineering and building inspection, quality management, food and service management, customer service and project negotiation. Special appreciation to Mr. Tarmezi Bin Ahmad (Assistant Accountant) as my supervisor during industrial training. His kindness on sharing his ideas and experiences in finance and accounting was really appreciated. 1 Not to be forgotten either, my internship coordinator1Madam Zuraida Binti Mohamad and Madam Suhaily Maizan Binti Abdul Manaf on their advise before and after the internship was completed. I would also like to express a very special thanks for my dedicated advisor for this report, Madam Nurul Syuhada Binti Baharuddin and Miss Nur Azwani Binti Muhammad Azmin on their guidance and encouragement in finishing this research. 2 I perceive as this opportunity as a big milestone in 2my career development. Therefore, I am grateful and wish to express my gratitude to staff members of Finance Department of IIUM Kuantan who rendered their help during the internship. I

Since 1983 The International Islamic University Malaysia (IIUM) was officially established in 20 May 1983. Who we are AThe university was founded under Companies Act of 1965 in which enable the English and Arabic as the medium of instruction. IIUM have several campuses spread across several states of Malaysia which are Kuala Lumpur (Gombak), Kuantan, Gambang and Pagoh. In 2003, IIUM has established campus in Kuantan focus on medicine and science. The campus located in Bandar Indera Mahkota, Kuantan, Pahang. Education Others Business Medical Research and Services Publication 1

Mission Vision The summary of the Mission should read as IIUM aims to become a leading international follows: centre of educational excellence which seeks to restore the dynamic and progressive role of the Integration Muslim Ummah in all branches of knowledge and intellectual discourse. Islamization 2 Internationalization and Comprehensive Excellence

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Issues I Numbers of learners impacted by national school closures worldwide Some 1.3 billion learners around the world were not able to attend school or university as of March 23, 2020. COVID-19's Staggering Impact On Global Education 1.6 29 1 5 10 15 20 23 1.4 MAR 1.2 Sources: UNESCO 1 0.8 4 0.6 0.4 0.2 0 25 FEB

Issues II Colleges and universities are facing financial difficulties in Malaysia The Asia Sentinel reported the research done from a former deputy Vice Chancellor, University Tun Razak, Professor Geoffrey Williams show that the higher education sector including private and public universities and colleges has shown worrying sign. Trading losses Financially insolvent 55% 44% Sources: Penang Institute 5

Research Objectives and Question Research Objective 1 Research Question 1 To observe the financial Is there any financial problems implication of Covid-19 during the faces by the company during the Pandemic to the company. pandemic? Research Objective 2 . To identify relationship between the Pandemic of Research Question 2 Covid-19 with the financial of Is there any relationship between the company.. the Pandemic of Covid-19 and financial of the company? 6

SCOPE OF STUDY The education sector in Malaysia which are 20 Public This research was conduct to Universities in Malaysia. investigate the impact of Pandemic Covid-19 towards International Islamic University the firm. Malaysia (IIUM) – Kuantan Branch The data collected from the company started from March to July 2020 7

SIGNIFICANCE 01 This study help the company to re-evaluate or restructure the management especially during and after the unfortunate event occurs. 02 The existence of the Pandemic Covid-19 encourage the employees to practice a new normal in which the working are turns to digital platform. 04 05 03 This research is valuable to the university where an academicians or researcher can used this study as an idea or references for the future research. 8

Literature Review Disruption in Education System Burgess, Henrik, April and Sievertsen (2020) 1 Many countries are decided to close the schools, colleges and universities during the Covid-19 pandemic. Anxiety among people Fetzer, Hensel, Hermle, March and Hensel (2020) 2 The emergence of the Covid-19 has triggered and creating a new perception and economic anxiety to the people entire world. Collapse of higher education sector Noordin (2020) Yee (2020) 3 The process of intake student will accelerate especially for the institution relying on foreign student recruitment and struggling to generate enough revenue to cover costs. Financial difficulties 4 The research done by former deputy Vice Chancellor from the University Tun Razak has revealed that 10% loss of income Malaysia foreign branch campuses operated in red (deficit) 9

Methodology Population 20 Public Universities in Malaysia Sample size International Islamic University Malaysia (IIUM) – Kuantan Branch Secondary Data The date used are gathered and extracted from the company report started from March 2020 to July 2020. Frequency analysis This research are using frequency analysis to analyze the data. The analysis are calculated by using excel function. % 10

FINDINGS AND ANALYSIS The Graph for Comparison Company Income Reduction for The Best Case Scenario in 2019 to Projection 2020 in International Islamic University Malaysia (IIUM) Lorem ipsum dolor sit amet Lorem ipsum dolor sit amet Best Case : Student will back to the campus in June 2020 11

FINDINGS AND ANALYSIS The Graph of Comparison Company Income Reduction for The Worst Case Scenario in 2019 to Projection 2020 in International Islamic University Malaysia (IIUM) Worst Case : Students will back to the campus in January 2021 12

FINDINGS AND ANALYSIS 80000000 Total Financial Implications of Pandemic Covid-19 60000000 In International Islamic University Malaysia 61724380 61724380 40000000 31534211 22539418 Total Implication (RM) 20000000 Income Reduction 0 Saving Additional Budget Best Case Worst -20000000 -9486111 -9486111 Case Additional Expenditure -40000000 -26374098 -60000000 -80000000 -100000000 -97582256 Types of Implications -120000000 13 Month Report.

Miscellaneous of expenses DISCUSSION Disruption in Education System The university need to spend their money for 14 The close down of the school give huge others expenses. The company are freeze their impact in the company income. The income part time employees to continue their contract. from the other services are reduce. Financial difficulties Anxiety among people Based on the total financial impact of Covid- This fear affected the company. The 19, the company are having financial employees are afraid come to the office difficulties which is the company used their during MCO. Many of employees choose to savings in order to cover some of the expenses work from home. However, the online needed by staff, student and university. platform are very limited and required high speed of internet. Collapse of higher education sector During the pandemic, the income from foreign student are drop since the foreign student are not allowed to enter the country during the MCO. The company to struggle to generate revenue due to loss in collecting fee from student.

1 Cut Cost Recommendations 3 Improve online platform 2 Alternative Business 4 Explore, develop and introduce technologies 15

Cut Cost Alternative Business Reduce unnecessary expenses. For instance, the food for Create their own product or services. The company are having employees working during MCO are sponsored by the sufficient facilities to produce their own medical product and company. During MCO, the food for student are too services. For instance, an initiative by USM Researchers has expensive such are the snacks, biscuit and meal (Nasi Arab formulated Kaffir Lime Sanitizer for the used for students, staff : RM7/Person). The company are suggested to choose low and others. The university has used their microbiological lab cost meal with high nutrition. to produce the product. Having own sanitizer will reduce the cost of buying the product and the IIUM recommended to produce and sell their own product to cover the losses. Improve IIUM system Explore, develop and introduce technologies The IIUM using online platform for financial services but the Invention of new technology to improve society all documentation are still using paper. The company problems to boost the domestic economic such as food should improve their system by integrated these online and beverage, entrepreneurship, logistic and medical. platform into one in which all documentation can be send, For instance USM produces low cost automatic access, approved through the system. Upgrading the disinfection tunnel for their frontliners at USM’s wellness whole system, may take high cost but IIUM have their own Centre. The cost for each tunnel is about RM1,500. IIUM expertise (IIUM lecturers and student) to develop the system are suggested to discover and develop their own with high technology facilities. The system can be online technology to reduce cost and explore new and offline. Some of location have low speed of internet, opportunities. the Offline mode allows the IIUM staff can use and save all document through the system without internet. Thus, ease the daily work and minimal the cost. 16

Conclusion I Is there any financial problems faces by the company during the pandemic? The problems was exist in which the company are lay off IIUM part time workers and the income of the company is reduce. Is there any relationship between the Pandemic of Covid- 19 and financial of the company? Negative sign shows in income reduction and additional expenditure which means the company is facing losses during the Movement Control Order. 17

CONCLUSION II SUMMARY AS A WHOLE • This research used frequency analysis started from March 2020 to July 2020 in IIUM Kuantan. • The study recommend the IIUM to build Emergence Response Team (ERT) to manage, discuss and assess the risk and develop strategies to reduce the spread and impact of Pandemic Covid-19. • Transformation in method of teaching and learning from heutagogy and paragogy to cybergogy is big challenges for the Higher Education Institution in Malaysia. Thus, the role of the government is terribly needed by this sector. The role of the government (Ministry Higher Education Malaysia and Ministry of Finance), policy makers, researcher and financial expertise to seat together in monitoring the performance as well as help the industry to overcome their problems. 18

Self –Reflection INTRODUCTION Internship or industrial training is the beginning for university students as an early exposure to the real working life. Internship is one compulsory course that needs to be completed before students become graduates. In Malaysia, most of the universities and colleges are choose the final semester as an opportunity for their students to undergo industrial trainings. The suitability on selection of the company is based on the advice from the coordinator of the industrial training. Therefore, I have chosen International Islamic University Malaysia (IIUM) for industrial training. IIUM has two location of finance department which are the main office are located at Office of the Campus Director (OCD) and another office is located at One Stop Student Centre (OSC) or Wadi Budi. During my internship, I have been placed in the Finance Department at OCD. Also, the duration of industrial training is usually six (6) months depending on the field of study. However, the advent of Pandemic Covid-19 has shortened the training period effective in 18 March 2020 under the government order for Movement Control Order (MCO). 1. Gained Experience The Chief Executive Officer (CEO) of WhatsApp, Jan Koum said “experience from our youth shape what we do later in life. Experience is the most valuable things in life and the opportunity may only come once in a lifetime. During my internship, I have gained a lot of experience especially on financial fields. I learned about the financial system used by the company called as IFIS and IBIZ. IFIS is a financial system is used to create, record and print invoices, online receipt, payment requisition, payment order, journals, electronic payment system (EPS) and many more. Meanwhile, IBIZ is a financial system used to trace, make and check payment through Bank Muamalat Malaysia Berhad. In IIUM, all staff are trained to manage both account payable and account receivables. previously I only studied these two accounts theoretically but during industrial training I was required to use this system until I understood the uses and differences of these two accounts practically and more clearly. Additionally, the IIUM staff also teach me on how to make journals, proforma, cash flow and balance sheet through this system. Throughout the industrial training, my supervisor was very helpful and very resourceful in the field of finance. A lot of knowledge shared by him as well as short discussions on the opinions I have given are also accepted. Furthermore, I also learn to manage international transaction by using telegraphic transfer. In addition, IIUM staff also trained me to use several office machines such as photocopiers and dot matrix machines. dot matrix machines are used to print invoices, purchase orders and bank checks. 19

Self -Reflection INTRODUCTION “Always go with the choice that scares you the most, because that’s the one that is going to help you grow” by Caroline Myss, a well-known American author in New York. During my internship, I was assigned to help IIUM staff to visit project sites, building inspection, meet contractors, quality inspections for F&B unit and take electric meter readings. At first, I was scared because these special tasks are unexpected and not my field and I have little knowledge in the field of engineering, food and beverage services, quality management and discussions on tenders and contracts. However, the IIUM staff gave me a lot of useful input so that I was able to voice my opinion on the project and it was accepted by the contractor. Before the discussion with the contractor I have made some initial preparations because a few details have been informed by IIUM staff. The project is an additional air conditioning installation project for Automatic Teller Machine (ATM) at Wadi Budi (One Stop Student Centre). Installing air conditioning in the space is quite difficult because the room that has an ATM is squeezed by the other two rooms. Thus, the relatively high cost and budget because the horse needs to be channeled in the ceiling to avoid any damage occurs. The negotiation on the cost of the project are one of the valuable experiences for me as this discussion has help me to develop self confidence and learn to evaluate the cost and budget at lowest as well as achieve high quality. also, I was also assigned to handle customers. this task has given me added value throughout my internship at this company. handling various customer grievances is not an easy task. Explaining the procedure taken by the company on Pandemic covid-19 situation to international students was a big challenge for me. Answering each question asked and explaining the situation that happened to the student was quite difficult especially to convince them. 1. New Knowledge In addition, I learnt various aspects of new knowledge. I have also been given the opportunity to participate in various activities organized by the company. The activities organized are short ‘tazkirah’ on Fridays, community services at Wadi Budi and joined program with the banker. Twice a week on Friday at 9 am, the ‘tazkirah’ program was held to give employees the opportunity to learn religious knowledge even in a short time. ‘Tazkirah’ program also not only focuses on religious knowledge only but short sharing to deal with stress at workplace. Moreover, I have also been given the opportunity to join IIUM staff to interview new tenders for the 2020/2021 session scheduled in May 2020. However, the interview session has been postponed to a date to be announced due to the emergence of covid-19. I was also assigned to take the meter reading and recorded the reading into the system in which I have applied the subject of Sustainable Energy Management (EPO626). 20

Self -Reflection 2. Miscellaneous task “Always go with the choice that scares you the most, because that’s the one that is going to help you grow” by Caroline Myss, a well-known American author in New York. During my internship, I was assigned to help IIUM staff to visit project sites, building inspection, meet contractors, quality inspections for F&B unit and take electric meter readings. At first, I was scared because these special tasks are unexpected and not my field and I have little knowledge in the field of engineering, food and beverage services, quality management and discussions on tenders and contracts. However, the IIUM staff gave me a lot of useful input so that I was able to voice my opinion on the project and it was accepted by the contractor. Before the discussion with the contractor I have made some initial preparations because a few details have been informed by IIUM staff. The project is an additional air conditioning installation project for Automatic Teller Machine (ATM) at Wadi Budi (One Stop Student Centre). Installing air conditioning in the space is quite difficult because the room that has an ATM is squeezed by the other two rooms. Thus, the relatively high cost and budget because the horse needs to be channelled in the ceiling to avoid any damage occurs. The negotiation on the cost of the project are one of the valuable experiences for me as this discussion has help me to develop self confidence and learn to evaluate the cost and budget at lowest as well as achieve high quality. also, I was also assigned to handle customers. this task has given me added value throughout my internship at this company. handling various customer grievances is not an easy task. Explaining the procedure taken by the company on Pandemic covid-19 situation to international students was a big challenge for me. Answering each question asked and explaining the situation that happened to the student was quite difficult especially to convince them. 1. New Knowledge In addition, I learnt various aspects of new knowledge. I have also been given the opportunity to participate in various activities organized by the company. The activities organized are short ‘tazkirah’ on Fridays, community services at Wadi Budi and joined program with the banker. Twice a week on Friday at 9 am, the ‘tazkirah’ program was held to give employees the opportunity to learn religious knowledge even in a short time. ‘Tazkirah’ program also not only focuses on religious knowledge only but short sharing to deal with stress at workplace. Moreover, I have also been given the opportunity to join IIUM staff to interview new tenders for the 2020/2021 session scheduled in May 2020. However, the interview session has been postponed to a date to be announced due to the emergence of covid-19. I was also assigned to take the meter reading and recorded the reading into the system in which I have applied the subject of Sustainable Energy Management (EPO626). 21

Self -Reflection Conclusion Even though, the time span of the internship has been shorted, I have gained many valuable experiences during my internship. I had enjoy worked as an intern day by day and this is a golden opportunity for me that is rarely available in other companies. In addition, I had applied some of theories that I have learned in campus by doing various job scopes work especially in financial, accounting, quality management, customer service and etc. Undergoing industrial training at this company has helped me in developing my soft skills and overcome problems. As a whole, I had discovered my strengthen and weaknesses through the internship in the international company that is useful for future career because Oprah Winfrey said “create highest, grandest vision possible for your life because you become what you believe”. Notes: The self-reflection is two pages in Ms Office Words and converted into PowerPoint template for better professional outlook. 22

REFERENCES Bernama. (2020). COVID-19 : PKPIM urges higher education ministry to reduce COVID-19 : PKPIM urges higher education ministry to reduce university fees. Burgess, S., Henrik, H., April, S., Burgess, S., & Sievertsen, H. H. (2020). Schools , skills , and learning : The impact of COVID- 19 on education. (June), 1–4. Fetzer, T., Hensel, L., Hermle, J., March, C. R., & Hensel, L. (2020). Coronavirus perceptions and economic anxiety. 1–5. International Islamic University Malaysia. (2020a). COVID19 PANDEMIC AND MCO. International Islamic University Malaysia. (2020b). Overview History Song. Jonkers, R. (2020). Higher Education : Respond , Recover & Re-Imagine during. Mccarthy, N. (2020). COVID-19 ’ s staggering impact on global education. Retrieved from https://www.statista.com/chart/21224/learners-impacted-by-national-school-closures/ Noordin, N. (2020). Higher education in the time of the coronavirus. Retrieved from www.thestar.my Smalley, A. (2020). Higher Education Responses to Coronavirus ( COVID-19 ). Retrieved from www.ncls.com Veena Babulal, F. S. (2020). Learning institutions floundering. Retrieved from https://www.nst.com.my/news/nation/2020/06/601611/learning-institutions-floundering Yee, C. P. (2020). IMPACT ON THE TERTIARY EDUCATION SECTOR IN. (May), 1–7. Retrieved from www.penanginstitue.com.my 23

APPENDICES Turnitin

APPENDICES Significant increase number of learned affected by national school closure worldwide

APPENDICES Colleges and universities are facing financial difficulties. Footer 31

CON’T APPENDICES Colleges and universities are facing financial difficulties. Footer 32

CON’T APPENDICES Colleges and universities are facing financial difficulties. Footer 33

CON’T APPENDICES Raw data III Footer 34

CON’T APPENDICES Building and Maintenance Inspection From right: Technician, Civil Engineer The damage of beam structure. Manager, Practical student and Staff Discussion costing and budget with Head of Engineering Department, Engineering Manager and Contractor.

CON’T APPENDICES Food and Service Inspection Evaluation discussion with vendor Hygiene level inspection Evaluation form Meter reading

CON’T APPENDICES IFIS system IBIz system

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