Survey finds 40pc small businesses using more digital tech
Malaysian small businesses have made greater use of digital technologies in response to Covid-19, a survey by CPA Australia shows.
The survey said 40 per cent of small businesses in Malaysia had increased their focus on online sales in the past 12 months.
It said e-commerce was not the only digital technology used by small businesses during Covid19, as social media was also an important tool for the sector, with over 60 per cent using it to promote their business and 55 per cent to communicate with customers.
CPA Australia Malaysia division president Jimmy Lai said the strong connection between technology usage and business growth and the quick returns many Malaysian businesses experienced when investing in technology was no doubt helping to drive this uptake.
“Forty-two per cent reported positive returns from their technology investment last year.”
The survey said while most Malaysian small businesses offered customers new digital and mobile payment options, 61.5 per cent still received 50 per cent or more of their sales in cash, above the regional average of 46.4 per cent.
“Small businesses may be offering limited digital and mobile payment options due to a lack of understanding about what is available or scepticism towards these solutions.
“This echoes findings from CPA Australia’s 2020 Report on Business FinTech Usage Survey that showed 31 per cent of businesses with fewer than 50 employees identified a lack of fintech understanding among the board or senior management as a challenge to fintech adoption.
“More can be done to assure business that digital and mobile payment options can provide better customer reach, which should contribute to recovery this year,” Lai added.
Meanwhile, the survey said difficult financing conditions looked likely to remain a concern for many Malaysian small businesses this year, with nearly 50 per cent expecting they would face problems accessing finance.
These difficulties, plus an uncertain outlook, are also expected to impact the solvency of many businesses, with 32 per cent anticipating it will be difficult to repay debts this year.
Despite the uncertainty many businesses face, over a quarter of Malaysia’s small businesses expected to innovate this year, the survey said.
This is a higher result than for small businesses in Australia, Hong Kong, New Zealand, Singapore and Taiwan.