Tech, innovation top priority for M’sian businesses over next five years

KUALA LUMPUR: In order to remain resilient, Malaysian businesses have shared that technology and innovation play a key role in this changed and challenged world.

HSBC Malaysia country head of commercial banking Andrew Sill said investing in technology and innovation is the biggest measure Malaysian businesses plan to take in the next five years and it is one of their key priorities for development.

“Malaysian businesses see technology as a major enabler for future success. Over the past six months, Malaysian businesses have felt the advantages of technology in their ability to innovate more than companies in the rest of the world. Their ability to be agile, and be er deal with their customers and their workforce, has set them apart from other markets,” he said at a webinar on the key findings from HSBC’s new report, ‘Navigator: Building Back Be er’.

The survey measures the pulse of businesses as they adapt to current challenges and highlights the steps they have taken to be resilient in the future.

The report surveyed 2,604 companies across 14 markets globally including 200 firms from Malaysia.

Sill said the survey revealed that nearly half (47 per cent) of Malaysian businesses strongly agree and nearly all (95 per cent) of them agree that times of adversity showcase how businesses can leverage technology to enhance or improve how they work.

He said in line with all the other markets, Malaysian businesses felt that resilience is built on four main factors – customers, employees, agility and a strong balance sheet – indicating that it is not limited to the business’ balance sheet alone but to the things which contribute to a strong balance sheet.

He said the survey found that over the past two years, Malaysian businesses have taken three main actions to build resilience, and these reflect their views on the characteristics of a resilient business.

“Investments in technology and innovation were the main focus across Malaysian businesses (69 per cent) followed by diversifying their business (55 per cent) and consolidating their financial position (54 per cent).

“By investing in new technologies and innovations, Malaysian businesses can ensure that they are future ready while contributing to the positive outlook and growth of the economy,” he said.

In addition, he said, the two key changes Malaysian businesses surveyed are planning to make to their supply chains in the next one to two years are the same as those planned across all markets – to increase their supply chain security followed by increasing transparency in the supply chain.

“Other top changes that are reshaping supply chains include diversifying the supply chain to work with more suppliers, creating a more traceable supply chain and increasing transparency in how their suppliers work and who their supply chain is,” he added. — Bernama