Thursday 28 Mar 2024
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KUALA LUMPUR (March 23): The majority — or 86% of Malaysian businesses — are ready to live with Covid-19, while 77% of companies are prioritising technology adoption in the near term as they look to accelerate their adaptation to the new normal, according to Ernst & Young Consulting Sdn Bhd (EY).

EY conducted the EY Business Pulse Survey between October and December 2021 to assess the readiness of Malaysian businesses to transition to the Covid-19 endemic phase. Over 500 companies participated in the online survey, including both large enterprises and micro, small and medium enterprises (MSMEs).

The survey also found that 43% of respondents are optimistic that business will recover to pre-pandemic levels within the next one to two years. This is encouraging as Malaysia moves into the endemic phase on April 1.

Technology has most positive impact on large companies and MSMEs during pandemic

EY revealed that 48% of large companies and 37% of MSMEs said technology had the most positive impact on their business during the pandemic.

According to its statement on Wednesday (March 23), the movement control order during the pandemic accelerated the adoption of technology in businesses and the transition to a digitised work environment.

“In contrast, the respondents experienced more negative impact in the financial (44% of large companies; 63% of MSMEs) and supply chain (54% of large companies; 44% of MSMEs) areas,” said EY.

While large companies have better access to technology and talent, challenging circumstances require organisational agility to navigate disruptions, close current gaps and accelerate actions to build resilience, said EY Asean Consulting Leader and Malaysia Consulting Managing Partner at Ernst & Young Consulting Sdn Bhd, Chow Sang Hoe.

“It is about the survival of the fittest,” said Chow.

Employee reskilling and digitalisation are key priorities

In the short term, 85% of respondents are prioritising improving employee safety and implementing standard operating procedures, including flexible work arrangements, while 77% focus on improving digitalisation to facilitate contactless IT infrastructure.

Looking ahead, the top business priorities are: 74% will focus on reskilling employees and another 74% will concentrate on implementing digitalisation. “At the same time, a higher proportion of MSMEs are paying greater attention to readapting business size, changing the business model or entering new business ventures (58%) and improving their financial positions (48%),” noted EY.

On the other hand, 51% of survey respondents said they need further support in improving digital technology; 47% in adapting the business to be more resilient; 42% in accessing resources for business recovery; 40% in transforming the physical space to better prepare for life with Covid-19.

Beyond the recovery and improvement phase, 58% of respondents said they need support to enter new markets; 54% want to form new partnerships; 53% have access to digital skills and talent; and another 53% are developing new business models, products, and services.

“With the evolving market disruptions and changing consumer preferences amplified by the Covid-19 pandemic, businesses need to prioritise capability development as they seek to transform their operating models for the future. Speed and agility are of the essence,” Chow concluded.

Edited ByLam Jian Wyn
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