SMEs outlook in Malaysia
With more than 98.5% of business establishments in all the sectors in Malaysia are Small and Medium Enterprises (SMEs), they play an important role in promoting economic growth and development. In 2017, SMEs contributed 37.1% of the total Gross Domestic Product (GDP) in the country, recording an average growth rate of 7.2%as compared to the national average growth rate of 5.9% during the same period.
The total value added provided by SME was about RM 435.1 billion in 2017 as compared to RM 405.8 billion in 2016. The manufacturing sector contributed 34.6% of the total GDP, 40.6% contributed by the services sector, and 47.1% in the construction sector. The SME exports increased to RM 167.4 billion in 2017, and the employment provided by SME had increased from 65.3% in 2016 to 66% in 2017.
Main challenges facing SMEs
Although SMEs have made favourable growth and development in the last decade, SMEs are also facing difficulties in this volatile, uncertain, complex and ambiguous (VUCA) environment. In terms of labour productivity, the annual growth rate was only 3.6% in 2017 or RM 81,039 per employee. The high costs of advertising, premonition and communication costs seem to be one of the main obstacles for SMEs high growth.
One MD of an SME perceived that SMEs face several issues including the difficulty to obtain a business loan, unable to attract or retain talents, unclear tax policy, and slow to adopt new technologies. SMEs slow involvement in E-Commerce is also attributed to high costs of technology adoption, security for e-payment, and lack of related technicians.
Other issues of concern for SMEs are related to limited of working capital, limited marketing and promotion strategies, lack of information about domestic and international market, management and technology capability constraint, low value add to their product as well as lack of training and limited capability in R&D and Technology.
Guide you into a world of business
About 25% of the total respondents in the SME surveyed in 2017 perceived that the internal challenges facing them were to bring the brand to the next level, lack of professional guidance from branding experts, and also unclear on how to leverage on digital platforms.
According to the International Trade Centre (ITC) report on SME Competitiveness Outlook 2018 – Business Ecosystems for the Digital Age finds that to flourish in the digital age, SMEs need a strong ecosystem with institutions providing business support and skills training.
In this respect, DSMZ Academy Sdn Bhd lends its support to the SMEs that are desirous to leapfrog to the next level of growth and development as Malaysia embarks on the new economies of the 21st century.
DSMZ Academy: Your business counsellor
Despite the turbulent and challenging times now and in the near future, SMEs must realise that it is not the end of the world. This business cycle will surely end in the immediate future as global business leaders complete their adjustments to the VUCA environment. Don’t wait for it to come, as it will only be too late for you to take the abundant opportunities that are made available now for SMEs.
Now is the time for SMEs to do your business plans for the next growth cycle, providing refresher directions for the next level of growth strategies. With almost 30 years experience in the business, industry and public policy advocates, DSMZ Academy Sdn Bhd does not want you to miss this golden opportunity for you to gain insights on how best to prepare your small business as the new business wave creeps slowly now in the current environment in Malaysia and worldwide.
To cope with this changing VUCA environment, DSMZ Academy offers a newer strategic management perspective for SMEs to review and reenergize their business strategies through the ‘ Competitive Strategic Management – AMIRA Approach’ module. AMIRA is the transformational perspective of SMEs in re-evaluating, redesign and realign their strategic business plans and choices consistent with the existing business scenario. Through AMIRA, SMEs can gain more advanced insights on strategic competitive positioning, in order to build a superior high performing SME as we move into the next business cycle in the vicinity.
Providing services beyond expectations
In addition, DSMZ Academy is the only non-IT centric specialist that can help you to understand better and prepare your SME to participate in big data and data analytics so that you can gain many unforeseeable insights of your SME business performance and plan for a superior competitive advantage situation. With the imminent development of Industrial Revolution 4.0 and the Internet of Things (IoT), SMEs must know how to participate in big data and data analytics that will provide exceptional advance compared to others through our modules on ‘Data Analytics for SMEs.
As we are approaching closer to 2020, SMEs must learn new tools and techniques to enhance their small business growth. DSMZ modules on ‘Small Business Growth Strategies’ provides a refresher perspective for SMEs to learn comprehensive tools and techniques that can assist small business owners to realign their business strategies, and participate in newer business opportunities that have been overlooked for too long, thus avoiding unnecessary competition that is very stressful these days.
For more information regarding training, coaching and consulting services, please call 03-21638778 or email: [email protected]