Friday 29 Mar 2024
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KUALA LUMPUR (March 22): Malaysian small businesses made greater use of digital technologies in response to the Covid-19 pandemic, with 40% increasing their focus on online sales over the past 12 months, according to a new survey by professional accounting organisation CPA Australia.

According to the CPA Australia’s 12th annual Asia-Pacific Small Business survey, e-commerce wasn’t the only digital technology used by small businesses during Covid-19.

It said social media was also an important tool for the sector, with over 60% using it to promote their business and 55% using it to communicate with customers.

“The strong connection between technology usage and business growth and the quick returns many Malaysian businesses experience when investing in technology is no doubt helping to drive this uptake. 42% reported positive returns from their technology investment last year,” said Jimmy Lai, president of CPA Australia’s Malaysia division.

While most Malaysian small businesses offer customers new digital and mobile payment options, 61.5% still receive 50% or more of their sales in cash, above the regional average of 46.4%, the survey noted.

“Small businesses may be offering limited digital and mobile payment options due to a lack of understanding about what’s available or scepticism towards these solutions. This echoes findings from CPA Australia’s 2020 Report on Business FinTech Usage Survey, which showed 31% of businesses with fewer than 50 employees identified a lack of fintech understanding among the board or senior management as a challenge to fintech adoption.

“More can be done to assure businesses that digital and mobile payment options can provide better customer reach, which should contribute to recovery this year,” Lai added.

Meanwhile, difficult financing conditions look likely to remain a concern for many Malaysian small businesses this year, with nearly 50% expecting to face problems accessing finance.

These difficulties, plus an uncertain outlook, are also expected to impact the solvency of many businesses, with 32% anticipating it will be difficult to repay debts in 2021.

Nevertheless, developments such as the vaccine roll-out and easing of restrictions suggest a more positive picture for 2021. About 70% of respondents expect their revenue to grow this year, up from 56% last year.

Exporting also will make an important contribution to growth, with 45% expecting revenue from overseas to grow this year.

Edited BySurin Murugiah
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