One of the world’s largest accounting bodies with more than 166,000 members working in 100 countries around the world, CPA Australia boasts a base of more than 10,000 members in Malaysia.
Conducted between Nov 18 and Dec 12 last year, CPA Australia’s Asia-Pacific Small Business Survey 2019-20 found that many of Malaysia’s small businesses entered the pandemic in good financial health with over two-thirds (67.7%) reporting an expansion in business in 2019.
First detected in China late last year, the Covid-19 virus has spread to 212 countries and regions worldwide, claiming 85,711 of the 1.4 million people who tested positive according to the World Health Organization.
The pandemic and the ensuing restrictions on movement have severely affected the global economy, but with 51.7% of Malaysia’s small businesses generating more than 10% of their sales online last year according to CPA Australia, the accounting body believes that these SMEs are well placed to offset at least some of their lost sales from traditional means.
Noting that small businesses have little margin for error, CPA Australia said prudent management which focuses on the changing needs of customers – and even greater adoption of technology – would be essential to business recovery and ongoing future success.
“The business you had before this pandemic hit will not be the same as the business you have after the pandemic abates and economic activity recovers,” said CPA Australia’s general manager of external affairs Paul Drum.
“Small business owners face the challenge of adapting their businesses to ‘a new normal’ at a time when finances are tight, although stimulus measures by the government are easing that particular challenge,” he added.
Conducted among 4,193 small business operators in 11 key markets in the region, the 11th CPA Australia Asia-Pacific Small Business Survey showed that many of Malaysia’s small businesses are well-managed and focused on their customers.
CPA Australia found that four factors had a particularly positive influence on Malaysia’s small businesses in 2019: customer loyalty, improved customer satisfaction, good staff and improved business strategies.
The accounting body said its survey results consistently show that businesses with a focus on their customers, technology and strategy are more likely to have strong growth than other businesses.
“While it is wise to focus on cash flow and financial health at this time, businesses should also be looking at how they can meet the fast-changing needs of customers, especially through increasing online sales,” said Drum.
“While over half of Malaysia’s small businesses generate more than 10% of their sales online, if a large proportion of Malaysia’s small businesses are to recover, that result will need to be far higher by the time we run this survey again at the end of this year.
“Given that nearly all Malaysian businesses invested in technology in 2019 and that 45.7% stated that such investment was already profitable, it looks as if many of Malaysia’s small businesses have the digital capability to expand their online sales in 2020.”