KUALA LUMPUR, Feb 10 — About 71.6 per cent of Malaysian micro, small and medium enterprises (MSMEs) saw their revenue rise year-on-year last year, according to Alliance Bank Malaysia Bhd’s MSME Business Outlook 2023 report.
The report said that 46 per cent of the businesses said revenue has returned to pre-pandemic levels or exceeded expectations.
This indicates an encouraging recovery momentum by the MSMEs in 2023, which is backed by Malaysia’s strong gross domestic product (GDP) growth of 9.3 per cent in the first three quarters of 2022.
Despite the projected weaker global economy and a possible impending recession in 2023, 32.9 per cent of MSMEs are optimistic about making business decisions and are willing to take bolder strides for better future gains.
The report also found that Malaysian MSMEs are adopting digital initiatives to stay competitive and have an expansionary view that takes into account environmental, social, and governance (ESG) concerns, with 52.5 per cent of them planning to introduce new products and services as part of their digital offerings; 48.8 per cent to increase the use of new technologies; 48.1 per cent plan to leverage digital initiatives to expand into new markets and 51.3 per cent to rethink their business models.
Group chief SME and commercial banking officer Raymond Chui said that MSMEs play a significant role in growing the Malaysian economy as the sector contributes 11.7 per cent to the country’s total exports and provides employment to 47.8 per cent of the population.
“By supporting MSMEs to grow, we are also helping them maximise their impact and contribution to the economy,” he said in a statement.
The report captures responses from over 300 MSMEs surveyed by the bank Digital SME (Alliance DSME) in November and December 2022.
The report provides an overview of MSMEs’ key concerns, investment plans, digital initiatives, and ESG considerations for 2023.
— Bernama
