COVID-19 “New Normal”

Mohammad Abdul HamidBehavioural Insights Consultancy

nudge.com.my

the ‘new

normal’

“Basically, our lives may not be the same anymore for the nextfew months or years. We will be living according to the ‘newnormal’. Whatever we used to do before, we can’t anymore. Thefight is still on and we are doing well so far”.

Prime Minister Tan Sri Muhyiddin Yassin (NST, 10th April 2020)

Objective

To trigger & promote discussion on the

“new normal”

✓ from behavioural insights perspective

✓ proactive approach

Impacts of COVID-19

2020 GDP growth between -0.5% and 2% (BNM)

Prof Nick Powdthavee

Warwick Business School

“Previous” normal “Interim” normal “New” normal

Opportunities:1) Set new & better normal2) Self-nudges3) Accelerate some of policy actions

Work from home

No social gatherings

Essential travels only

Lower fuel & electricity

consumption

Less emission – lesspollution

Better for the environment

Consumption

Policy maker

Individual

Source: OECD

Guidelines

Guided by BI implementation “procedure”

1) EAST framework (BIT)

2) BASIC framework (OECD)

1. BehaviouralInsights

“An inductive approach to policy making that combines insights from psychology, cognitive science, and social science with empirically-tested results to discover how humans actually make choices” (OECD).

Source: OECD

2. Understanding human behaviours

- The way we think (slow & fast)- Our biases

Source: OECD

3. Self-nudging

• “empowering interventions that enable people to design and structure their own decision environments—that is, to act as citizen choice architects”. (Reijula & Hertwig, 2020)

Self-control strategies1. Modify physical and social aspects of a

person’s external world 2. Modify mental aspects of a person’s

internal world.

Tackling new normal with BI

What is the problem?

What are the behavioural

drivers?

Design intervention

Adapted from OECD (2019)

Test

“If you want to encourage a behaviour, make it Easy, Attractive,

Social and Timely (EAST)”. (Service. O et al, 2014)

Example #1: Work from home

Prompts (eg. a weekly & daily planner – To-do list, progress update/report, reminders of deadlines)

Put phone on silent mode or away from work station

What is the problem? • Productivity

What are the behavioural

drivers?

• Self-control

Design intervention

Policymakers can partner with employers

Goals1o Improve health of citizens

2o Improve savings

What is a potential

behaviouralintervention?

Eat out Food delivery

Take-away Cook @ home

Options

Which behaviourneeds changing?

Best option

Example #2: Lifestyle

Source: Berita Harian

No Option Key points

1 Eat out Restricted due to COVID-19

2 Take away Business has to go on. Convenient.

3 Delivery Business has to go on. Convenient.

4 Cook @ home Require efforts & time.

Because role of policymakers is quite limited in changing the architecture of the environment (options 2 & 3), self-nudging is likely more effective to achieve the goals.

Policymakers can guide citizens for self-nudging, conduct test on target groups etc.

How to make it easy?

Example #2: Lifestyle

Example #3: Lifestyle

Goals 1o Recharge/happy time

2o Promote local tourism

Policymakers can work with industry partners to encourage/ “nudge” more people to opt for

local holiday.

Social norms Framing Prompts

Behavioural interventions

Cuti-cuti Malaysia @ Staycation

Overseas vacation

Purchase of goods More people turn to on-line

purchases.

1o Safety & security

2o Effectiveness (cashless transaction)

Example #4: Consumption

Public policy goal:

sustainable consumption

BehaviourBehavioural

interventions

Reduce use of plastic

wrappings

Urban transportGoals

1. Less pollution

2. Sustainable consumption

3. Efficient

Options

1. Own transport

2. Public transport - inconvenient (for some)

Example #5: Consumption

Source: Berita Harian

Example #5: Consumption

• Identify target groups

• Which behaviour needs changing?

• Develop intervention

• Test

Source: CityLab

Recommendations

• Identify BI/nudges in the new normal environment that can achieve/improve outcomes.

• Educate the public on self-nudges. Given the BI tools, citizens can also implement nudges for their own wellbeing.

• Test & implement BI for the new normal.

This aesthetic keynote designed by AD2RIN

mah@nudge.com.my