Subsidy and Organizational Performance Post COVID-19

Abstract

In order to help firms to achieve competitive advantage, the government in Malaysia has introduced many commercial subsidies. The purpose of this research is to explore existing government subsidies to find out the impact of Malaysian government subsidies on firm performance. This research focuses on whether the five commercial subsidies (tax incentives, government loans, training incentives, innovation support and digitalization grants) will have an impact on the performance of Malaysian firms. Serving as the pioneer study that looks into the impact of subsidies on organizational performance post COVID-19 lockdown, the results of this research can provide a good direction for Malaysian firms on which type of subsidies might help them improve their performance. The findings of this study found that Malaysian government subsidies have significant positive impact on firm performance. However, not all five government subsidies will affect firm performance. Out of the five government subsidies proposed in this study, only tax incentives and government loans have significant positive impacts on Malaysian firm performance.