‘FINANCIAL DISCIPLINE A CHALLENGE FOR BUMI SMEs’

KUALA LUMPUR: Bumiputera small and medium enterprises (SMEs) need to upscale their working capital management and leverage the government’s assistance to expand their businesses.

“The government has been assisting SMEs through loans and grants but without adequate financial management knowledge, they would be less likely to succeed,” said Deloitte Malaysia executive director Dr Nordin Mohd Zain, here, yesterday.

He said lack of financial discipline was one of the many challenges faced by SMEs, especially Bumiputeras.

“They should realise that when they grow bigger, the ability to manage working capital and cash flow is paramount in the challenging business environment of today,” said Nordin.

Many have benefitted from government assistance, including financial management training through various agencies such as SME Corp Malaysia (SME Corp), he said.

“It is important for SMEs to realise that the key to success depends on their ability to contain their cash flow, manage their debts and ensure the sustainability of their businesses,” added Nordin.

A fact sheet circulated by SME Corp at the press conference revealed that the number of Bumiputera SMEs in the top 50 enterprise list in Malaysia had been declining from 2014.

In that year, there were 30 Bumiputera SMEs among the top 50 Malaysian enterprises, but their number had dropped to just 16companies this year. Bernama