KUALA LUMPUR: The to start with Star Fantastic Business Awards (SOBA) 2022 LAB kicked off with the pertinent query on how to make company resilience by using new technological innovation, partnerships and efficient cash management.
Moderated by the Connected Chinese Chambers of Commerce and Marketplace of Malaysia (ACCCIM) small and medium enterprises (SMEs) committee countrywide treasurer and chairman Koong Lin Loong with panel speakers like PKT Logistics Group Sdn Bhd chief financial officer Pang Kong Chek, RHB Lender Bhd and SME Engagement head Sim Ee Chiew and Credit score Promise Corp Malaysia Bhd’s (CGC) Department Sales Administration vice-president Sharifah Attashah Syed Ali.
Koong opened the discussion with the observation that immediately after two and a fifty percent a long time because Covid-19 the business group gears up for a restoration, the transition has been a rocky path, as the world faces headwinds from the Ukraine-Russia War, inflationary strain, provide chain disruptions and troubles with the labour market place.
He also stated that in accordance to ACCCIM’s survey, company communities are even now dealing with cash flow-related challenges these kinds of as the minimize in the earnings, growing expenses and more and questions the job of hard cash movement in making certain business enterprise continuity.
Pang agreed that money stream is important for the survival of organizations.
He explained that the regulate on cash collections or cash conversion for both receivables and inventory ought to be kept within command or be enhanced upon.
He mentioned that receivables are tied to credit history handle relies upon on a superior credit command coverage to regulate or lower the possibility of defaulting.
For inventories he explained an great stage of inventory trying to keep need to be monitored to assure the organization operates at an optimum level.
Sim pointed out that SMEs may also find it challenging to optimise their inventory amount due to the volatility of raw content costs and fluctuating forex.
He reported banks provide quite a few services including SMEs financial loans to permit them to inventory up and cater to their increasing business enterprise activity post-restoration.
Sharifah pressured that it is important for firms – significant and smaller – to ensure they have a wholesome dollars move and that business owners want to put together a money move assertion and carry out regular money circulation investigation.
She famous that the biggest issue that business homeowners confront is in tackling late payments and she prompt offering guide payment bonuses or incentives.
She also brought up invoice funding, which can get some money flowing in by having innovations on unpaid invoices as perfectly as income flow forecasting to assistance entrepreneurs make options in advance.
On electronic transformation, Koong highlighted the requirement of digital transformation for building business enterprise resilience and extra importantly how to start out the journey.
Sim explained financial institution clients now can execute transactions remotely, and even deliver enterprise alternatives that boost operation effectiveness, cut down expenses and build the potential for small business house owners to realize the aim to expand their companies, such as the accounting computer software or HR solution and also digital point-of-product sales methods.
He claimed banking companies are 1-prevent centres that present a large array of companies to buyers.
Pang associated that PKT Logistics had also adopted digitalisation and automation in some of its enterprise processes, as effectively as robotics.
However, he shared that digitalisation can begin with a small step, these as to utilising and taking care of expenses employing an accounting software or with many others, which a application seller can assist out.
He mentioned that SME can faucet into the SME Digitalisation Grant, which features a greatest of RM5,000 or the Wise Automation Grant, at a greatest of RM1mil.
Pang encouraged functioning with an IT specialist who understands the prerequisites and who can produce, deploy and take a look at the set up in the functioning surroundings.
According to Sharifah, CGC retains advisory workshops though its associates to tutorial its customers on how to broaden their organization via electronic transformation.
“SMEs need to have to swap from the traditional business enterprise natural environment to extra hybrid enterprise designs now,” stressed Sharifah. “Equally essential is the shift to accepting digital payments as effectively as QR payments.”
She also introduced up the relevance of investing in cybersecurity as digital transformation has also resulted in an boost of frauds and digital crimes.
Sim shared that financial institutions also provide identical alternatives that will support SMEs run their business functions a lot more efficiently and value-effectively.
“Banks have built-in a method that is capable to deliver client solutions relating to payment and collections, but also other forms of help, to aid customers work additional proficiently,” he stated.
Koong then pointed out that when an organisation ordeals electronic transformation, there will be adjustments that affect human cash and the have to have to re-ability or look for external expertise as their current workforce.
Sharifah said that adjustments in the business enterprise atmosphere by itself may possibly require the talent to be upskilled.
That is to train the staff an state-of-the-art talent set that is related to the career or distinct obligations.
She explained re-scaling prepares staff members for an completely new posture which is not connected to their present-day occupation.
“SMEs need to know what marketplace and the knowledge their companies want to grow in purchase to commit in the proper up-scaling or re-scaling programme,” she stated.
Pang stated that PKT has an instruction arm which features classes on logistics.
A brief-phrase program of 3 months is qualified at college leavers to trains them with the competencies needed to function in a logistics surroundings.
Performing so enables the corporation to also redefine the value of a task part in order to catch the attention of and retain the expertise within the organisation.
“It is the organisational culture that allows us shape unique positions internally so that we are in a position to hire and keep them.”
From the point of view of banking companies, Sim claimed it is critical not only to see SME enterprises mature but to guarantee that they take pleasure in a steady very well-remaining over and above banking.
“We introduced in business associates to help educate customers and their staff members in the locations such as in operations management, human source and accounting in order for them to do their careers much more proficiently,” he mentioned.
With regards to partnership, Sharifah stated that CGC engages with economical institutions to give financing to its buyers as perfectly as engage with all economical establishments, peer-to-peer companies and the capacity-creating company to present funding, substitute funding or suggest to the customers via on-line.
CGC also pairs the SME buyers with a more substantial or worldwide enterprise player in buy to leverage the reach of the more substantial entity to boost their products and solutions.
“Partnership gives great reward to SMEs by opening up new perspectives, skills and information, as perfectly as price-saving in marketing.”
Those people interested can observe the full video clip on the StarBiz Facebook website page at https://fb.observe/ey0TgCJWqx/The upcoming SOBA LAB webinar, titled “Future of function: Reinventing the electronic workspace” will be on Aug 18, at 3pm.
SOBA 2022 is organised by SMG with CGC, Digi, PKT Logistics Group and RHB Lender Bhd as main sponsors, TalentCorp Malaysia as co-sponsor and Matrade as formal trade marketing lover.
Supported by Bursa Malaysia, it is audited by BDO with 988 and Suria as formal media partners.
For much more information and facts on SOBA 2022, contact SMG Functions at 017-231 1789 or go to www.soba.com.my.