Mid-market enterprises positive on sales growth

PETALING JAYA: A whopping 93% of mid-market enterprises (MMES) in Malaysia are optimistic on the prospects of growing their top line in 2023 despite softening economic growth globally.

This figure is in line with the global average across 14 markets, according to HSBC’S latest Business Balancing Act (BBA) survey.

Out of these optimistic MMES, three in 10 are expecting sales to grow by 15% to 20%, while a quarter surveyed are even more positive and are expecting sales to grow by more than 20%, HSBC said in a statement yesterday.

The survey polled 171 chief executive officers and chief financial officers from rising and established Malaysian MMES with an annual turnover of between Us$10mil (Rm47mil) to Us$500mil (Rm2.4bil).

A majority of these MMES were from the manufacturing, retail, digital and financial services sectors.

The research was carried out for HSBC by polling company Toluna.

It found that the optimism of sales growth in 2023 stemmed from two major catalysts, with more than half (56%) of the MMES sharing that the introduction of new products and services for their businesses, as well as technology-driven efficiencies in their operations (53%) will be the major growth drivers.

The ability to attract investments and secure financing for their business and increasing domestic demand were the other two top drivers cited by the MMES.

On major threats to business growth for MMES in Malaysia next year, the most common concerns raised were inflation and the higher cost of living (63%), rising interest rates (44%) and uncertainty in the political environment (43%).

Commenting on the BBA survey findings, HSBC Malaysia head of commercial banking Karel Doshi said that despite the headwinds and challenges, it is encouraging to see many MMES are resilient and positive about their business prospects as they zero in on growth in 2023.

“The BBA survey shares that the key engines of growth for MMES are the introduction of new products and services, leveraging on technology to drive efficiencies and expand into new markets.

“MMES are a significant driver of growth to the Malaysian economy, and their optimism in growing their businesses next year in spite of the tougher economic environment expected is definitely a positive sign,” she added.