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KUALA LUMPUR: An annual survey by CPA Australia found that 78 per cent of small businesses in Malaysia expect to grow this year, the best result it has seen in 12 years.
CPA Australia's annual Asia-Pacific Small Business survey results show that more small businesses are bullish on their growth prospects in 2024.
In 2023, 66 per cent of small businesses surveyed saw growth.
The upbeat sentiment by nearly three quarters of Malaysian respondents, above the survey average of 65 per cent, is pegged to the confidence in the economy.
The online survey of 308 respondents from Malaysia was conducted amongst a random sample of small business owners/ senior managers from organisations with fewer than 20 employees between November and December 2023.
"59 per cent sought external funding for business growth in 2023 reflecting a shift from business survival in 2022," it said in a statement.
The report said increasing cost of doing business remained a key concern with materials, utility costs, staff costs and rent being the costs that impacted businesses the most last year.
Close to 50 per cent said increasing cost negatively impacted their business. "Young entrepreneurs are driving the momentum on innovation and technology uptake. The survey results have shown over many years that small business with younger entrepreneurs are more likely to be growing, innovating, using emerging technologies and exporting," said President of CPA Australia Malaysia Division Surin Segar.
Strong returns from online sales through a wider choice of new digital and payment technologies and greater social media presence are driving technology spending.
Mobile apps remained the most popular technology for Malaysian small businesses to invest in 2023, with almost 50 per cent reporting their technology investment improved profitability.
32 per cent said they will introduce a new product, process or service to Malaysia or the world in 2024.
This will support long-term growth and improved competitiveness of Malaysia's small businesses.
"With many small businesses being risk averse, it is imperative for policymakers to support potentially inexperienced young people owning or in key positions to seek business advice," added Surin.
Meanwhile, 52 per cent of small businesses owners reviewed their cybersecurity in the last six months compared to 48 per cent in 2022.
Surin noted it was encouraging to see the increase in cyber risk awareness as the government continues to strengthen regulatory frameworks with the new Cyber Security Bill tabled in Parliament. "This is aligned with the Communications and Digital Ministry's call for collective action and global coordination to counter cyber threats," said Surin.
Environmental, social and governance (ESG) focus for small businesses centred on staff health and safety, supply chain sustainability, diversity and inclusion policies.
"We hope to see increased investment in advanced ESG practices such as renewable energy and the adoption of green and sustainable finance opportunities," Surin said.
CPA Australia's 15th annual survey of small businesses polled 4,222 in 11 markets in Australia, New Zealand and Asia.
2023 was a year of growth for most small businesses, with most markets reporting an increase in the number of small businesses that grew in 2023 compared with 2022.
Source: https://www.nst.com.my/business/economy/2024/04/1033939/survey-says-78pc-small-businesses-malaysia-expect-growth-2024-its