BIZSPHERE saw the budget as a survival budget to mitigate the present challenges and to balance the importance of life and livelihood. It lacks focus on revitalising the economy which allows businesses to be sustainable in the long term.

Small and Medium-size Enterprises (SMEs) face many issues including cash flow and supply disruption. Yet, the greatest challenge for businesses especially SMEs is the reduction in demand due to the various movement control orders. It has affected both domestic and foreign demand for goods and services.

Increasing Market Demand

1. Government Procurement for Malaysian Products / Services – Government had proposed to allocate RM150 million for Shop Malaysian Online Programme whilst RM25 million to promote Buy Malaysian Products.

These are efforts to support local traders as well as promote e-commerce. It is a great move to promote domestic consumption but the government may want to be careful on the allocation whereby it supports more local e-commerce platforms selling products originated from Malaysia only.

Yet, the biggest spender in the country is the government. Government and GLCs should buy products and subscribe from Malaysian SMEs instead of glorifying the quality of foreign products, with at least a minimum of 50 percent procurement.

2. SME Vendor Development Programme

Vendor / Supply Chain development programmes are not a new concept. The programme does not only offer business but also consistent capacity and capability development which leads to greater competitiveness in the market.

Bumiputera Vendor Development Programme has been able to nurture new and successful Bumi entrepreneurs. It is timely in this challenging time for the government to introduce the SME Vendor Development Programme.

For example, InvestKL has attracted over 100 investors to Malaysia over one year and Malaysia Mid-Tier Companies which contribute about 1/3 of GDP will also need to strengthen their supply chain. BIZSPHERE urges the government to formulate certain incentives for these so-called “big boys” to support, nurture, and develop SMEs to be global players.

Export Promotion and Marketing

It is rather disappointing to notice that the proposed budget only allocated RM35 million to promote local products via trade and investment mission. Malaysian SMEs need greater market demand.

Export is our only way out when the country continues to implement various movement control orders. In addition, Malaysia just signed the RCEP which opens up 30 percent of the global market.

“The national macro targets under DKN 2030 is to increase SME contribution to total export value to 30.0 percent from today’s 17.3 percent. We need to start branding and marketing now. It takes time to build a brand and gain market confidence.

SMEs will need to be more aggressive in marketing and exploring new markets.” said Yap Keng Teck, Managing Consultant of BIZSPHERE. “MATRADE should be allocated with a higher budget to support SME Go Global,” he added.

Capacity and Capability Building  

The Ministry of Finance in the Economic Outlook 2021 Report acknowledged that with the significant presence of SMEs in the economy, any crisis will inevitably affect various sectors and overall economic growth. Moving forward, government key initiatives will be to accelerate digitalisation, adopt strategic financial planning, and enhance the brand capability of SMEs.

1. Towards IR 4.0 – The government has proposed a budget for various digitalisation programmes including RM1 billion Industry Digitalisation Transformation Scheme, RM150 million SME Ecommerce Campaign, RM150 million SME Digitalisation Grant Scheme and Smart Automation Grant, and RM100 million for Digital Upskilling under MDEC.

“Due to pandemic, SMEs already have a number of loans on hand to service. RM1 billion Industry Digitalisation Transformation Scheme may not be their choice or immediate need. They need subsidised investment which only totals RM300 million, which is also extended to micro SMEs.

While the country aims to encourage a mass digital economy, it is of great importance to support SMEs to gain competitiveness through higher productivity.

Industry4wrd is a great framework but was only allocated with a RM30 million intervention grant in 2020 with a maximum of RM 500,000 per company. We need a critical mass of advanced manufacturers. 60 manufacturers embarking on Industry 4.0 will surely not be capable of advancing the Malaysian manufacturing sector.

2. Business, Finance and Brand Plan – In general, SMEs are poor in planning. Very few SMEs have a documented business plan. They have accounts but not so much of finance. They have advertising and promotion but not so much of branding and marketing.

A lot of incentivised training by the Government are skill-based. There is a need to allocate a budget for leadership development. It should not be limited to training but to include coaching and mentoring to be more effective. Malaysia needs more SME business leaders.

Simplicity and Speed – Key Factor to Save SMEs 

SMEs hope the budget will be passed without much delay. There is an urgency for the budget to be dispersed and reach the hands of the needy. There is a great fear among SMEs that they won’t be able to sustain their business waiting for the promised assistance to reach them.

It is not over exaggerating that it takes up to 6 months before any of the applications are approved. Very often the relevant government department or agencies will take a month or two to draft out the detailed incentive programmes. Another 2 months to allow businesses to apply and another 2 to 6 months to get it approved depending on the complexity of the programme.

“SME just can’t wait that long anymore. Many will not be there anymore to receive government assistance in 6 months’ time. In addition, there are a number of programmes which require application processes with different forms and formats.

Many SMEs highlighted that they struggle to put in an application not to mention some with no clarity in the process,” said Keng Teck who is also the National Vice President of SME Association of Malaysia.

Our government has been constantly engaging with industry to better understand real SMEs challenges. Yet, SME can only win the battle in this economic crisis if the budget allocation is managed and delivered. On the other hand, SMEs should continue to voice out their concerns through proper channels e.g. surveys so that they can be heard and represented.

Covered by Business Today.

BIZSPHERE Brand and Marketing Group (BIZSPHERE) – a SME branding and business consulting company applaud the Government’s commitment in protecting the livelihood of the people and economy.

Overall, there is a lot of allocation for SME financing, upskilling and reskilling as well as some for digitalization.

BIZSPHERE saw the budget as a survival budget to mitigate the present challenges and to balance the importance of life and livelihood.

However, it lacks focus on revitalizing the economy which allows business to be sustainable in the long term.

SMEs face many issues including cash flow and supply disruption. Yet, the greatest challenge for businesses especially SMEs is reduction in demand due to the various movement control orders. It has affected both domestic and foreign demand for goods and services.

Therefore, the Government must into the areas below to rejuvenate our SMEs:

 Increase Market Demand

Government Procurement for Malaysian Products / Services – The Government had proposed to allocate RM150 mil for Shop Malaysian Online Programme whilst RM25 mil to promote Buy Malaysian Products.

These are efforts to support local traders as well as promote ecommerce. It is a great move to promote domestic consumption but the Government may want to be careful on the allocation whereby it supports more of local ecommerce platforms selling products originated from Malaysia only.

The biggest spender in the country is the Government. Government and GLCs should buy products and subscribe from Malaysian SMEs instead of glorifying the quality of foreign products. A minimum of 50% procurement may be? Malaysia is an exporting country with products and services on par with international standards.

SME Vendor Development Programme

Vendor / supply chain development programmes are not a new concept. The programme does not only offer business but also consistent capacity and capability development which leads to greater competitiveness in the market.

The Bumiputera Vendor Development Programme has been able to nurture new and successful bumiputra entrepreneurs. It is timely in this challenging time for the Government to introduce the SME Vendor Development Programme.

For example, InvestKL has attracted over 100 investors to Malaysia over one year and Malaysia mid-tier companies which contribute about 1/3 of GDP will also need to strengthen their supply chain.

BIZSPHERE urges the Government to formulate certain incentives for these so-called “big boys” to support, nurture and develop SMEs to be global players.

Export Promotion and Marketing

It is rather disappointing to notice that the proposed budget only allocated RM35 mil to promote local products via trade and investment mission. Malaysian SMEs need greater market demand. Export is our only way out when the country continues to implement various movement control orders.

In addition, Malaysia just signed the Regional Comprehensive Economic Partnership (RCEP)  which opens up 30% of the global market. So, we need to start branding and marketing now.

It takes time to build a brand and gain market confidence. SMEs will need to be more aggressive in marketing and exploring new markets

 Capacity and Capability Building 

1) The Finance Ministry in the Economic Outlook 2021 Report acknowledged that with significant presence of SMEs in the economy, any crisis will inevitably affect various sectors and overall economic growth. Moving forward, government key initiatives will be to accelerate digitalization, adopt strategic financial planning and enhance brand capability of SMEs.

The Government has proposed a budget for various digitalization programmes including RM1 bil Industry Digitalization Transformation Scheme, RM 150 mil SME Ecommerce Campaign, RM 150 mil SME Digitalization Grant Scheme and Smart Automation Grant and RM 100 mil for Digital Upskilling under MDEC.

Due to pandemic, SMEs already have a number of loans on hand to service. RM1 bil Industry Digitalization Transformation Scheme may not be their choice or immediate need. They need subsidized investment which only totaling RM300 mil which is also extended to micro SMEs.

While the country aims to encourage mass digital economy, it is of great importance to support small and medium size SMEs to gain competitiveness through higher productivity.

Industry4wrd is a great framework but was only allocated with RM30 mil intervention grant this year with max of RM500,000 a company. We need a critical mass of advanced manufacturers. 60 manufacturers embarking into Industry 4.0 will surely not capable of advancing Malaysian manufacturing sector.

2)  Business, Finance and Brand Plan – In general, SMEs are poor in planning. Very few SMEs have a documented business plan. They have accounts but not so much of finance. They have advertising and promotion but not so much of branding and marketing. A lot of incentivized training by the Government are skill based.

There is a need to allocate budget for leadership development. It should not be limited to training but to include coaching and mentoring to be more effective. Malaysia need more SME business leaders.

Simplicity and Speed – Key Factor to Save SMEs 

SMEs hope the budget will be passed without much delay. There is an urgency for the budget to be dispersed and reach the hands of the needy. There is great fear among SMEs that they won’t be able to sustain their business waiting for the promised assistance to reach them.

It is not over exaggerating that it takes up to six months before any of the applications approved.  Very often the relevant government department or agencies will take a month or two to draft out the detail incentive programmes.

Another two months to allow businesses to apply and another two to six months to get it approved depending on the complexity of the programme.

In conclusion, SMEs can only win the battle in this economic crisis if the budget allocation is managed and delivered. On the other hand, SMEs should continue to voice out their concerns through proper channels e.g. surveys so that they can be heard and represented.

Covered by Focus Malaysia.

Below is the article published by The Edge Markets.

KUALA LUMPUR (Nov 15): While the Budget 2021 has been touted to be the largest budget in Malaysia, four associations have jointly urged the government to revise the national budget to provide “sustainable and meaningful” assistance.

The four associations are Malaysia Retail Chain Association (MRCA), SME Association of Malaysia, Bumiputra Retailers Organization and Malaysia Shopping Malls Association (PPK).

In a joint statement by the consortium of associations released yesterday, they said the Budget has not lived up to the expectation for businesses that are hoping for a lifeline to sustain themselves through this unprecedented health and economic crisis, which they say is worse than Asian Financial Crisis in 1998 and Global Financial Crisis in 2008.

Thus, the associations have proposed nine forms of aid to address the shortcomings of the Budget in responding to the immediate challenges posed by the pandemic crisis.

As shopping mall owners and landlords are reluctant to provide further rent relief without any incentive from the government, the associations are calling for a waiver or reduction of land assessment tax and utilities payment including water, electrical and telecommunication. “We propose for extension of the electricity discount to December 2021,” said the associations.

On top of the relief on utilities payment, the associations are proposing direct financial assistance to small and medium enterprise (SME) tenants to cover the rental cost for at least two months during CMCO and also another two more months during the recovery period.

The associations also proposed the removal of minimum 30% rent reduction for tenants, as it is not responsive to this dire situation, given every tenant requires a different intervention approach.

Secondly, they are also proposing for a waiver of all statutory payment for businesses until Dec 31, 2021 or for one year after the lifting of the movement control order (MCO), whichever is later.

To encourage domestic spending, the associations propose a targeted tax incentive for retail and tourism spending, by way of individual tax exemption for a sum of RM1,000 monthly (or RM10,000 from May–Dec 2020) for shopping of goods and services, to be substantiated by relevant receipts, and individual tax exemption for a sum of RM5,000 to be substantiated by relevant receipts.

Additionally, the associations said the Coronavirus Disease 2019 (Covid-19) Act 2020 (Covid-19 Act) does not provide adequate protection to businesses due to the limitations set out in its provisions, and hence, they are urging for a revision of the Act.

For instance, tenants are only protected from warrant of distress for arrears from March 18, 2020 to Aug 31, 2020, but subsequently, landlords are allowed to recover rent from tenants from Sept 1, 2020 onwards, despite businesses having been severely impacted by the CMCO.

Other assistance and reliefs proposed are the extension of wage subsidy programme for up to six months at RM1,000 per employee earning less than RM 4,000 a month, tax relief for safety and hygiene expenditures, blanket extension of the bank loan moratorium until June 2021, a ‘Travel Bubble’ programme to restart tourism industry with selected neighboring countries to reignite the tourism industry, and a Covid-19 SOP compliance certification for retail and restaurant premises.

Article source: https://www.theedgemarkets.com/article/sme-retail-and-mall-associations-urge-govt-more-aid-budget-2021

Below is the article published by The Star.

PETALING JAYA: With 2020 taking on a decidedly disappointing turn for businesses, small and medium enterprise (SMEs) were counting on Budget 2021 for more support to survive the current challenging economy and be positioned for recovery.

SME Association of Malaysia president Datuk Michael Kang believes the focus on helping SMEs to survive this pandemic and transform is not there.

Article source: https://www.thestar.com.my/business/business-news/2020/11/07/mixed-responses-from-smes-on-the-budget

Below is the article published by New Straits Times.

KUALA LUMPUR: Small and medium enterprises should take advantage of the consultative approach adopted by the government to voice their needs during the Movement Control Order (MCO) period.

Entrepreneur Development and Cooperatives Minister Datuk Seri Wan Junaidi Tuanku Jaafar said the government has been actively engaging with SMEs during the MCO to gauge their status and needs throughout the period.

“Undeniably, the impact of the Covid-19 outbreak and the subsequent MCO was immediate on businesses, especially SMEs.

Based on data from the Companies Commission of Malaysia (SSM), he said, a total 31,190 business entities had filed for cessation between March and October this year.

He added that SSM had also taken the initiative to revoke dormant companies by sending notices to 35,944 companies under Section 551 of the Companies Act 2016.

SSM also recorded 281,781 new businesses registered within the same period, he said, adding that a bulk of newly registered business entities consisted of sole proprietors and partnerships (89.3 per cent), followed by companies (9.8 per cent) and Limited Liability Partnerships (0.8 per cent).

“The official statistics highlighted the fact that the number of new businesses significantly outweighed the number of business entities that ceased operations despite the challenges of Covid-19 and the MCO.

“Meanwhile, surveys on Covid-19 in May and August 2020 (by SME Corp Malaysia and the ministry respectively) indicated that the percentage of businesses that have ceased operations was slightly lower in August 2020 at 1.4% compared to 1.6% in May 2020.”

Wan Junaidi said the crisis was unprecedented not just in Malaysia but in the world, and the only options that SMEs had was to adapt to the new normal and look for opportunities in adversity.

Among others, the MCO, he said, had hastened e-commerce adoption by SMEs that had been procrastinating diversification of their sales channels and encouraged people to embrace various kinds of digitalisation to work from home and communicate virtually.

He added that the MCO had also encouraged multinational and large companies in Malaysia to substitute imported parts and components with locally sourced materials following supply disruption from abroad.

“SMEs form 98.5 per cent (907,065) of business establishments in Malaysia. They are a heterogeneous group that vary in size, sector, stages of business lifecycle, and others.

“Therefore, there can never be a one-size-fits-all solution. Thus, the government has long realised the need for a strong framework for SME development to garner optimum results from various initiatives to enhance economic growth.”

This was reflected by the establishment of the National SME development council, now known as the National Entrepreneur and SME Development Council, said Wan Junaidi.

He added that in 2020, a total 211 entrepreneurship and SME development programmes were being implemented with a total allocation of RM12.9 billion reported by 17 ministries and more than 60 agencies.

Article source: https://www.nst.com.my/news/government-public-policy/2020/11/641509/take-advantage-govts-consultative-approach-voice-out

Below is the article published by The Star.

KUALA LUMPUR: The Covid-19 pandemic has exposed underlying problems in the way SMEs conduct business.

The pandemic has also created a new normal in business practices, which includes adopting digital business models, re-orientation in supply chains and embrace the shift in consumer behaviors.

SMEs need to improve their capability and capacity to be more resilient, agile and flexible to face uncertainties, according to the Economic Outlook 2021 report.

The SME Corp undertook a series of internal surveys between March and May 2020 to assess the impact of the MCO (Movement Control Order) on SMEs.

The surveys indicated that cash flow disruptions were the main challenge to SMEs during the Covid-19 crisis, followed by lower demand, supply chain disruption and legal issues.

The surveys revealed that nearly 60% of SMEs reported not having any sales during the MCO period, while 39% experienced lower sales.

They also claimed not having money to pay staff salaries and benefits, business loan repayments, rental, utilities, raw materials and packaging.

More than 90% of SMEs are expected to survive up to five months with their cash-in-hand.

The SME Corp surveyed showed that only 34% were able to continue operations as essential services providers.

Majority of SMEs had to undertake various actions including negotiating with employees on salary and benefit cuts (37%), retrenching (34%), limiting business trips (33%) and working from home (33%).

For SMEs to retain their pre-crisis growth momentum, assistance other than commercial loans are necessary. This includes soft loans, deduction on corporate and business tax and a dedicated government agency as SMEs focal point.

Hence, all the initiatives under the stimulus packages, the wage subsidy programme, six-month loan moratorium, free internet services and special relief facility initiatives were impactful.

A total of 72% of SMEs are anticipated to rebound within a year and the rest, more than a year.

Moving forward, among the initiatives that will enable SMEs to endure any crisis are accelerating digitalization, adopting strategic financial planning and enhancing branding.

Accelerate digitalization

The adoption of digitalization is necessary to transform SMEs to be more competitive and resilient. Only 62% of SMEs are connected to the internet, 46% have fixed broadband and 18% have a web presence of some kind.

Adopt strategic financial planning

More than 70% of SMEs financing needs are sourced internally or from personal savings; the rest obtained from banks and development financial and microcredit institutions.

Many SMEs lack awareness and know-how to conduct effective and efficient budgeting including alternative financing.

Enhance branding

Currently, local SMEs contribute only 18% of total exports due to lack of knowledge on market access and readiness in exporting.

Insufficient funds for brand and marketing is the top internal challenge for SMEs. In contrast, the high cost in brand communication was the main external challenge.

Article source: https://www.thestar.com.my/business/business-news/2020/11/06/economic-outlook-2021-smes-resilience-the-way-forward

With the introduction of Budget 2021 that was announced last week on the 6th Nov 2020, by our Minister of Finance – Tengku Zafrul Aziz, the new budget for next year can be seen as bringing hope to SMEs across Malaysia.

In our continuous effort to help SMEs maximise their full potential, BIZSPHERE Brand & Marketing Group has taken the initiative to summarize some key things that would benefit the SMEs. Keep reading to know more!

As a Content Marketer, you will play a role in:

1. Content Strategy Planning, creation and content management for Bizsphere and clients
2. Content writing to drive traffic, engagement, and leads that deliver sales and customer retention.
3. Collaborate with designers, brand and business consultants, and industry experts to produce relevant content that meets the needs of both key stakeholders and audience.
4. Write in multiple styles/formats as required by client/prospect personas such as articles, effective headlines, taglines, call-to-action, blog posts, video scripting, and etc.
5. Research, content creation, and quality control for Bizsphere and customers content delivery.
6. Custodian of Bizsphere Communication Assets (Website, Facebook, LinkedIn, Video Channels, and any outreach communications) in terms of developing, managing, update, review, and improvement of Bizsphere communication delivery channels, content, and materials.
7. To actively contribute with members in clients brand and marketing projects (brainstorming, research, proposal development, copy writing, translation, strategic business plan, award submission, grant applications, and etc).
8. Develop in-depth understanding of Bizsphere and it’s service lines, while remaining up to-date with current/new developments in SME community development service capabilities

To be successful in this role, you will need to have:

1. Understanding of various types of social media content, and how they play a role in content marketing strategy.
2. Preferably candidates with a Diploma/Degree in Marketing or Business, Mass Communication, and Advertising. However academic qualification is NOT A MUST. The writing, communication, and ability to craft a compelling story are skills that we are looking for. Digital Marketing skills is an advantage.
3. Required language(s): English and Mandarin/Bahasa Malaysia.
4. At Least 2 years++ of working experience in the related field is required for this position.
5. Must be able to demonstrate your content content creation and marketing work (portfolio) during the interview

If you want to make an impact in the business world with your writing and ideas, expand your skills and knowledge in Branding & Marketing, as well as Business Management. This is an exciting opportunity to bring your fresh ideas to the fore and elevate your career.

BIZSPHERE has been consulting SMEs for more than a decade. There are many SMEs which have great products and superior service standards but are unable to unveil value propositions in the most relevant and convincing manner. SMEs need a simple framework to help them organise their thoughts. We recommend SMEs to use the simple model below to help craft the ideal value proposition.

VALCOM 3C™ model is developed by BIZSPHERE to enable SMEs to craft their own appealing messages to be communicated to their clientele. VALCOM = Value Communication whilst 3C refers to Customers; Company; Competitors. In our opinion, each piece of communication must bring value to both the sender and the receiver. The key is to Communicate What Matters Most. It is not only about what we want to communicate, but how customers value it and whether competitors are saying the same thing. VALCOM 3C™ model is best to be explained using a Venn Diagram. Each circle represents the core elements of customers, company and competitors.

Customers – What Matters Most to Them?

Let’s be practical. Customers want everything especially if they do not need to pay extra. We need to identify what is good to have and what is a must to have from customers’ perspective. We will not be able to satisfy everything that customers want. Our branding and marketing effort should focus on what matters most to them. For example, what matters most to a customer who goes into a café? Would it be the coffee aroma, the origin of the coffee bean, the ambience, the personalised service with a smile, the price, a nice wall for selfie, the barista or the location? SMEs can use survey forms, get the front liners to ask the customers directly or organise some contests to get their feedback.

Company – What are Your Strengths?

SMEs will need to ask themselves. Do they have what it takes to offer and fulfill what matters most to their customers? SMEs must review internally what strengths they command from the list of “What Matters Most to Customers?”. For example, your company might have five strengths out of 10 attributes that matters most to customers. Is that great? Not really. You have the strengths that matters most to them means that your products and services are “RELEVANT” to them. They might like you but not choose you. Customers will still do their research and comparisons. They will approach different suppliers based on what and how these suppliers communicate their key value proposition. SMEs must seriously look at their operations if they do not have enough strengths that matters most to their customers. For SMEs that can’t find strengths relevant to what matters most to their customers, then it’s time to review their target customers or whether they are in the right business.

Competitors – What are They Not Addressing?

There are low barriers of entry in today’s economy. The uniqueness of products and services offerred today can be copied the very next day. There is always another supplier who can offer similar products at the same or lower price. Can we still differentiate ourselves if other competitors can do what we do? POSSIBLE! We need to acknowledge that not every company is active and consistent in branding and marketing. They might have the strengths but may not be communicating it clearly, loudly and consistently. This is what we call “What the Competitors are Not Addressing?”. A simple example is the milk formula “Enfagrow”. Most other brands in the market also contain DHA, but do not actively shout it out. “Enfagrow” took the lead, advertised heavily on benefits of 4xDHA. The market thought they were the only one having DHA. They have the 1st mover advantage and taken the biggest market share then.

In short, we can gain a “Competitive Advantage” by addressing what matters most to our customers which are not communicated by other competitors, although they have the same or better capabilities. In the case where the competitors and the company do not address what matters most to customers or have the strengths, this will be the area of “Potential” where the Research and Development or the Strategic Planning unit can look at. This is the vacuum where the opportunity for the ones who move faster.

The Ideal Message/Value Proposition

A SME can craft out an Ideal Message or Value Proposition when they have the strengths to the attributes that matters most to customers and yet not addressed by competitors.

What matters most to your customers + What strengths you have to offer + What competitors are not addressing = Ideal Message and Value Proposition.

Simple guide in using VALCOM 3C™ Model:
1. List down 10 attributes that matters most to customers. (List X)
2. Filter out attributes which your company has the strengths from the List X. (List Y)
3. Filter out the attributes where competitors do not address from List Y.
4. The Ideal message will be the centre sweet spot of the Venn Diagram.

By Keng Teck Yap, Managing Consultant of Bizsphere Brand and Marketing Group.
Written for Business Today Magazine, Issue March 2020.

Year 2020 is the new beginning of a decade. Business landscape had changed in tremendous speed in the past 10 years. It will not slow down but will move even faster. Are SMEs prepared for the new decade? Can SMEs continue to operate the same way as it was in the past 10 years yet maintain competitiveness? In this article, I would like to urge SMEs to be prepared for and welcome the 10 Cs of the new decade.

1.CHANGE 

Evolution of technology, disruptive business models, dynamics of consumer behaviour and expectations are forcing SMEs to be fast and agile in order to survive. With the new government in power, there are already multiple changes in policies within a year. Minimum wages, SST and digital transformation are some that impact SMEs the most. Political and socio-economic condition will continue to be volatile while waiting for new government to stabilise and govern our country systematically with a clear direction. SMEs have to prepare for and adapt to these changes.

2.CAPACITY AND CAPABILITY

Malaysian SMEs are too used to working with what they have while hoping for the better. Most often, there are minimum investments in automation, upskilling, branding and marketing. Many manufacturers still dependent on foreign workers while services companies continue to squeeze most out of their employees with minimum training and upskilling. SMEs are deemed to fail If capacity and capability building is not in the radar of their business planning. There are many free seminars / forums / conferences and special upskilling programmes from HRDF while government agencies like MPC, MATRADE, MIDA and SMECORP also offer various incentive programmes to help SMEs build and grow their capacity and capability. SMEs must be pro-active in enrolling themselves for these programmes.

3.CREATIVE THINKING

Creative thinking is not proprietary to artists and designers, it is an essential skill in businesses especially for SMEs who wish to challenge the market. The result is always referred to Disruptive Economy. Design thinking is one of the most popular creative thinking methods recently and I foresee it will be the basis for new business ideas. Key to creative thinking is to challenge and question the norms. SMEs are small and have greater advantage to leverage on creative thinking to change their business models compared to bigger conglomerates.

4.COLLABORATION

SMEs often want higher control of their operations by having all managed in-house. Lack of resources and focus deters excellence in what they do and limit their growth potential. In the new decade, businesses should focus only on what they do best and collaborate with others on areas they do have expertise in. Collaborative partners will be able to maximise their competitive advantage to create higher value than what SMEs can achieve independently. Collaborative model not only eases SMEs’ investment burden, but also offers greater performance and results.

5.CONTENT MARKETING

Content marketing has been a very popular business strategy in the last decade and it will continue to be even more important in this decade. The availability of 5G technology allows content to be transferred in light speed. Content sharing format will go beyond video and may see virtual reality and augmented reality becoming the norms in the coming years. Content enrichment capabilities have no limits. It will surely change how we consume content and that offers a whole new opportunity for marketing and branding.

6.CONVERSATION

Consumerism has put a great impact on the world we live in. We are exhausting the earth’s resources while we enjoy the goods and services offered. The younger generation has greater awareness on this threat and more people are beginning to be environmentally friendly. They will support businesses which adopt or promote sustainable economy conserving nature and resources in their own ways. Some businesses see it as Corporate Social Responsibility (CSR) but I see it as a purpose economy which not only brings goodness in what we do but a great revenue stream to SMEs. SMEs should grab this opportunity and benefit from the first mover advantage.

7. CUSTOMISATION

In the age of 4th industrial revolution data and artificial intelligence offer endless possibilities. Today, mass customisation is possible and it will only get more common and affordable in the next few years. However, consumers would only want what is unique to them. SMEs who can produce or market such products will win the battle in the competitive market.

8. CONNECTIVITY

We are living in a world that is nearly fully connected. We can share information and content to anyone in any part of the world while businesses can connect to its operations in real time with machine twinning. The world is now accessible virtually, hence SMEs can market its services to everyone and anywhere in real time. Conglomerates and MNCs which historically control the market loses its competitiveness to SMEs as everyone is now competing in a level playing field.

9. CLOUD

Business operations and transactions will no longer be server dependent. SMEs will just need to get on Cloud and start migrating their systems for higher operational efficiency.

10. CYBERSECURITY

Last but not least, cybersecurity will be the biggest concern for SMEs. Digital threat will overtake theft or robbery. As of today, very few SMEs has made efforts to strengthen their cybersecurity measures and do not realise the detrimental impact including risk losing the whole business. SMEs can no longer afford to neglect this in this new decade.

To conclude, I am confident that SMEs will triumph in this decade as every aspect of economic, political and technological development is in favour of SMEs.

By Keng Teck Yap, Managing Consultant of Bizsphere Brand and Marketing Group.
Written for Business Today Magazine, Issue Feb 2020.