Getting in touch with the new 'low touch' economy

THE post-Covid-19 era will have an economy shaped by new habits and regulations, with reduced close-contact interaction, tighter travel restrictions, and heightened hygiene habits.

Malaysia, as a tourism- and trade-based economy, will not be spared and must adapt accordingly.

Until there is a vaccine available or herd immunity present, there will be an unprecedented change in how we work and live in the coming year, resulting in new habits long after.

Gradual shifts happening over time will now accelerate to become more immediate.

The top 10 trends highlighted in a report by the Board of Innovation, a global business design and innovation strategy firm, are:

> Even more anxiousness, loneliness and depression;

> Diminished trust in hygiene of people and products;

> Extended travel restrictions, even within country;

> Optimised work from home setups, beyond typical office jobs;

> Rising tensions and conflicts in international trade;

> Unprecedented levels of global unemployment;

> Take out/ home delivery for everything;

> Increasingly limited contact with older generations;

> Expansion of one's identity beyond just one's job; and

> Unique value for consumer groups who have certified immunity.

The Fourth Industrial Revolution (IR4.0) was poised to bring in massive changes in commerce and society, and these technologies will now become indispensable in adapting to the new "low touch" economy.

Those "playing defence" in the face of these changes will have to switch to offence in order to survive. Begging ignorance is no longer a valid excuse and those who act fast and decisively will seize the advantage.

This is equally true for individuals, companies, societies and countries. In many ways, those with the fewest number of legacy leadership positions to protect are best adapted to embrace innovation and change.

The "low touch" economy can offer countries like Malaysia the chance to embrace the elusive high-value innovation economy that we have long aspired to.

For naysayers who decried that we could never change our mindset, the day has come when change is forced upon us. Whether we like it or not, the low touch economy is here to stay.

Dr Rais Hussin is a Parti Pribumi Bersatu Malaysia strategist. The writer’s views are entirely his own.