On the way to recover and survive in the new norm, businesses need to step back a little bit and start focusing on other things out of the book of plans. Business owners and marketers in Malaysia have landed their pivot on technology and digital as by the survey found by Ernst & Young (EY). The survey on Covid-19 business impact received nearly 700 responses from companies coming from large to list, along with SMEs.
Covid-19 has merged as a game-changer for digital transformation. Where previous initiatives programs to go digital have met with lukewarm responses, particularly from the SMEs, Covid-19 has spurred Corporate Malaysia to accelerate its digital transformation,” said Abdul Rauf Rashid, the managing partner of Ernst & Young PLT Malaysia.
The recent MCO has revealed that businesses in Malaysia are quite inadequately armed to go to a more digitally-enabled work shift, reported by the survey.
Most companies faced complications in communicating with their suppliers and customers. They also have to deal with unstable online connectivity and insufficient functioning infrastructure during MCO.
In response to the pandemic, businesses have to speed up the technology adoption. About 32% of the large and listed company including 37% of SMEs that took the surveys said they had made their move to enlarge their technology power or upgrade it.
Work from Home hardware and software was introduced and almost up to 30% of businesses have invested in it to ensure the continuity of connections with their employees as well as in helping to improve employee productivity.
Be that as it may, it seems like EY feels that businesses must put in significantly more effort in order to support the demand and allow digital transformation. “there need to be significant enhancements to the businesses’ and nation’s digital and communications infrastructure, online connectivity and broadband speed beside ensuring the stability of the technology infrastructure,” says Malaysia’s financial services consulting leader of Ernst & Young (EY) Advisory Sdn Bhd, Shankar Kanabiran.
The lead-in digital transformation can be taken by the government in place of handling online transactions or accepting digital documents for import clearances for instance by transitioning its own processes and operations to be more digital-enabled, Shankar adds.
“Malaysia must not be left behind”, he notes.
The demand for higher technology proficiency in vision to connect businesses, supply networks, and customers is promoting the digital world.
48% of large and listed as well as 40% of the SME respondents said they will need the government direct assistance to reinstate financial stability in short order alongside economic recovery preparation. After that only they’ll look into development priorities and investment for the new norm.
Simultaneously, so as to maintain operations and cash flow, practically half of the respondents have done started the cost-cutting measures. According to the survey, these include putting a postpone on CAPEX and payments, managing indirect overhead costs, and applying cost refinement action. Some of them were found by the survey, also grasp the Economic Stimulus Packages. Regardless of how to support through financial reliefs form government is said needed by businesses to restore strength and liquidity of finance.
In addition, many of the companies have also mentioned the desperate need for MCO to be lifted in tandem with other measures for the purpose of resuming operations for business together with mitigating financial burdens. Businesses should work with IT companies in Malaysia as partners in the act to overcome this situation.
Abdul Rauf did say that the government and corporate Malaysia should work together to get past the pandemic well.
He says, “Given the impacts of the pandemic and restrictions on people’s lives, jobs, businesses, and the wider economy, recovery is likely to be lengthy, challenging, and multifaceted. The start of the journey towards economic recovery is contingent on rebuilding trust and confidence in the public and business realms and the deliberate intervention by the Government,”
“Businesses need to work hand-in-hand with the Government to resume operations and kick-start economic activities through well-considered, decisive, and effective measures.”