SMEs Positive And Confident

SMEs Positive And Confident

Malaysia’s small and medium enterprises (SMEs) are experiencing positive business conditions, with many adding jobs and investing in technology, according to a new survey released today.

The findings, from CPA Australia’s eighth annual Asia-Pacific Small Business Survey, follow extensive surveying of nearly 3,000 SMEs in Malaysia, Vietnam, Indonesia, Hong Kong, Singapore, Australia, New Zealand and China.

CPA Australia Head of Policy, Paul Drum said that while Malaysia SMEs reported weaker business growth than in 2016, the sector was still experiencing positive business conditions and was a strong creator of jobs in 2017. Malaysia SMEs were likely to create even more jobs in 2018.

“More than a quarter (27.5 per cent) of Malaysia SMEs added staff in 2017, reflecting strong growth for many Malaysian SMEs. A healthy 40.1 per cent are expecting to add additional staff members in 2018.

“SMEs from Malaysia continue to be strong users of digital technologies in their business. Over half of Malaysian businesses surveyed (53.4 per cent) earned over 10 per cent of their income from online sales, and over 80 per cent use social media for business purposes.

“However, Malaysia's small businesses would benefit from a stronger focus on new digital payment options, such as AliPay, ApplePay and WeChat Pay. Only 29.1 per cent allow customers to pay through this new technology, well below China (65.5 per cent) and the survey average (42.7 per cent).

Malaysian SMEs were the most likely to nominate customer loyalty as having the most positive impact on their business in 2017.

“It is good business practice to focus attention on existing customers, as it is always much easier to keep a customer than attract a new customer."