(This is a sponsored article at HSBC.)
2020 has sparked a wave of unpredictability in the business environment, and 2021 seems to be starting on the same footing too. But it's not all doom and darkness. Some managed to look for new opportunities while others had to close due to lack of demand.
In HSBC's annual Navigator survey, they found that 55% of Malaysian companies have managed to adapt to the new challenges. And 30% of them thrived because of these changes – compared to the global percentage of just 24%.
Note: HSBC's 2020 Navigator survey was conducted by Kantar (a market research company) on behalf of HSBC. You surveyed over 10,000 companies worldwide. The Malaysia-specific report is based on a survey of 200 Malaysian companies from various industries.
Here are some of the survey results that will help prepare your business for the economic recovery ahead.
1. Demand alone is not enough, changes are required
Companies in Malaysia did not get off to a good start in 2020 due to the early Movement Control Order (MCO) in March. However, consumer spending is slowly recovering with various government stimulus and support programs.
The survey indicates this 76% of the companies believe they can return to pre-COVID-19 profitability levels by the end of 2022.
Many local businesses have enjoyed the increased local demand for their goods and services and the demand is expected to increase in 2021. However, it is not enough just to meet local demand.
Ultimately, companies must learn to make changes and adapt to changing market demands. Some have changed to offer their services digitally, for example companies are creating their own online platform to make their products more accessible to consumers rather than relying on their retail presence.
74% of the companies surveyed said they have made changes in their business over the past 12 months to adapt to the new reality. Looking to the future, Malaysian companies see innovation and collaboration as the two most important success factors in their business.
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These payments are then transferred to your account the next business day, which boosts cash flow. You also have access to a consolidated report to keep track of payments. This solution is also available for your e-commerce or m-commerce business.
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2. Increase the investment in the business
Even with the intent of improving the company's digital capabilities, a company cannot optimize its revenue if it does not reinvest in the company in the right tools and resources.
The survey found that 78% of the companies will examine more opportunities to invest in their company in 2021. In fact, 25% of them plan to increase their capital spending by 20%. They prioritize their investments Cash flow improvement, marketing and Product innovation.
Maintaining healthy cash flow is vital, especially for SMEs. A robust tool for managing cash flow can therefore simplify many banking tasks for SMBs.
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You can even access different company accounts from a single profile. You get an overview of your company's cash position and can manage day-to-day banking, e.g. B. Make payments, and also track local and overseas transfers.
Once you have the ability to accept payments overseas, you are ready to expand internationally.
3. Prepare to expand business to APAC
And in terms of expansion, 74% of the respondents I have plans to expand into APAC in 2 years. With 86% of the companies surveyed already trading within APAC, they believe the expansion will help make their business more competitive.
Before companies can think about expanding, however, they must consider changes to their supply chain. For this reason, 99% of the companies surveyed have made appropriate adjustments, e.g. B. the use of digital technologies and the diversification of their suppliers.
These changes can lead to cost reductions, an increase in the transparency of the supply chain and a closer relationship with the end user.
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Image credit: HSBC
4. Streamline the process of receivables for better cash flow
Managing a global business can be challenging when you don't have healthy cash flow. There are times when your customers don't pay you fast enough and you have to make payments to your suppliers at the same time.
This can put your business at risk if not carefully managed.
Take advantage of HSBC's Receivables Financing (RF): RF Express is a simplified receivables financing solution designed with streamlined approval. As an alternative source of funding, you get access to cash from your accounts receivable as soon as you invoice your customers, so you don't have to wait weeks or months for your payments to arrive.
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As you can see from the survey, companies that have been successful and have good prospects for the future have been able to do so thanks to a combination of smart choices.
Despite the current MCO 2.0, there is an economic recovery in everyone's mind. However, equipping them with the right digital tools can be the tipping point companies are looking for to compete in a post-COVID world.
Image credit: HSBC
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Selected image source: HSBC