By Ben Thompson
NO matter what industry you work in, the COVID-19 pandemic has certainly brought about some business challenges.
Nobody could have predicted the magnitude of the effects that COVID-19 would have on the global economy and local Malaysian businesses, but looking ahead into 2021, it’s time for local small and medium sized enterprises (SMEs) to consider how to best manage these challenges moving forward.
SMEs are the backbone of the Malaysian economy, making up 98.5% of all business establishments in the country and contributing nearly 40% of the gross development product (GDP), employing almost two-thirds of the workforce.
For many of these SMEs, the movement control order (MCO) has had a negative impact on their business, with over 50,000 SMEs being forced to shutter since the start of the MCO in March 2020.
It is unsure what kind of impact the latest MCO 2.0 will have for SMEs, and how long the lockdown will last for Kuala Lumpur and Selangor. However, after the abrupt shift to working from home last year, more businesses are now better prepared for remote working and having hybrid teams.
Many businesses had to adjust to the “new normal” of working in the past 10 months since a pandemic was declared and MCO restrictions were put in place.
However, I believe that this “new normal” is here to stay, digitisation and remote working is the future of businesses in Malaysia and it is key for SMEs to quickly pivot and reinvent themselves and their workforce to remain relevant, competitive and resilient. SMEs must adapt rather than lag behind to continually play catch up.
Government support, including the allocation of RM2 bil through grants and financial aid, has certainly helped to sustain cash flow and save jobs. However, it is imperative that SMEs invest in their own resilience by embracing digital solutions that will give them a stronger competitive advantage in the long run.
I agree with the Economic Outlook 2021 recently published by the Finance Ministry that indicated how SMEs need to improve their capability and capacity to be more resilient, agile and flexible to face uncertainties.
The good news is that despite the challenges ahead, Malaysia’s SMEs appear to be up to the task. In our 2021 Employment and Recruitment Trends for Malaysian SMEs report, we found a majority (82%) of employees said they feel ready to face upcoming changes in 2021.
But, of course, this is just one side of the equation – and employers need to be ready to meet talent expectations as we move ahead into this relatively unknown future.
SME employers must prepare for anticipated challenges in the coming year. A significant proportion of the local workforce will still be working remotely, and so to maximize the utility of this virtual model, SMEs must ensure they have the right digital solutions in place to facilitate productivity, engagement and communication.
This means reframing traditional workplaces by enabling integrated and effective management of recruitment, HR and employee activities from anywhere around the world.
With a platform like Employment Hero, critical connectivity and inclusiveness between employer and employee is improved, fuelling resilience across the board and positively impacting overall business performance.
COVID-19 may have changed the way SMEs work, but they have also played a critical role in the Malaysian government’s push towards renewing, transforming and rebalancing the country’s economy in 2020.
Also, amidst all the disruptions to the working world, Employment Hero’s core platform has helped SMEs globally to innovate and manage their people in the most optimal way, ensuring businesses can focus on navigating the bigger issues. – Jan 15, 2021
Ben Thompson is the CEO and co-founder of Employment Hero.
The views expressed are solely of the author and do not necessarily reflect those of Focus Malaysia.
