PETALING JAYA: Small and medium enterprises (SMEs) need to decide which revenue streams need to be rationalised or maintained amid the current challenging environment.
They also need to encourage new ideas from outside and within, as well as embrace technology, said Pemandu Associates Sdn Bhd chairman and president Datuk Seri Idris Jala.
Idris, who was speaking during a roundtable discussion on Budget Impact to SMEs at the Annual Tax Symposium organised by Syarikat Ong, explained that SMEs should first run a financial simulation to assess the survivability of their business based on optimistic, pessimistic and realistic scenarios.
This is followed by a segmentation of profit and loss to the lowest level to identify revenue streams that are doing well or performing poorly.
Businesses should then conduct problem solving labs to identify innovative business opportunities and measures to address declining revenue.
“If the survivability of your business depends on Covid-19 ending, you need to innovate immediately.
“If that is not the case, then business owners should ensure that their business can survive future pandemics, ” he said.
Citing examples such as businesses diversifying into e-commerce and how Malaysian designers branched into designing face masks, Idris said technology can be utilised to conduct business activities and pivot businesses to new in-demand products and services.
SME Association of Malaysia president Datuk Michael Kang concurred, adding that SMEs can no longer rely on the traditional ways of doing business, and should instead ensure that both online and offline operations are complementary to one another.
As for strategies that SMEs should focus on over the next 18 months, International Real Estate Federation (Fiabci) Malaysia president Datuk Koe Peng Kang highlighted that SMEs should prepare in advance for marketing activities.
They should have a global mindset to venture beyond, as well as optimise cash flows and cost controls, he said.
Meanwhile, during the roundtable discussion on the Budget Impact to the Property Sector, Malaysia My Second Home (MM2H) Club Hong Kong founder Vincent Fong commented on the megatrends of property demand in Malaysia going forward.
This includes a rapid ageing society, housing affordability, online and borderless living as well as technology disruption.
On housing affordability, Chur Associates managing partner Chris Tan opined that home ownership in Malaysia is still realisable at present, as individuals with income and good credibility with banks are still able to find a price that matches their ability to afford.
“Going forward, the local property sector may see a turn in ‘home ownership’ to a scenario of home versus ownership.
“Individuals will still be on the lookout for homes, but ownership may be less of a concern, ” said Tan.
Addressing the topic on home ownership for foreigners, Malaysia Proptech Association president Elizabeth Siew suggested that property players can look into the tokenization of properties where foreigners can invest in a share of a property, without the need for obtaining the state government’s consent.
Syarikat Ong managing partner Agnes Wong was the keynote speaker and moderator for both roundtable discussions.
The Annual Tax Symposium is organised by Syarikat Ong, Pemandu Associates and Malaysia My Second Home (MM2H) Club Hong Kong.
Syarikat Ong is a provider of corporate secretarial, tax and accounting services.