KUALA LUMPUR: Malaysia's small and medium enterprises (SMEs) view 2024 as a year of growth prospects despite concerns about rising costs and inflation, Employment Hero's SME Sentiments Report revealed today.
The survey, which polled 540 business leaders across Malaysian SMEs in November-December 2023, found that an impressive 79 per cent of respondents are confident about the growth prospects of their company.
It also found that 50 per cent of SME leaders see Malaysia's economy performing well in the next 12 months, with 18 per cent believing the economy will be poor and 32 per cent remaining cautious that it will be average.
"A healthy majority of SMEs in Malaysia are starting to feel more confident having gone through some challenging years, while some are still concerned, tightly managing their expectations and business," said Employment Hero managing director (Asia) Kevin Fitzgerald.
The report also discovered that 48 per cent of respondents regard rising costs and inflation as their biggest challenge for the year.
Furthermore, it highlighted that medium-sized businesses are struggling with staff upskilling and manpower shortages, owing to factors such as higher salary expectations, a mismatch between industry needs and skills training, and a reported higher-than-average rate of brain drain.
"I hope this analysis of business sentiments in the Malaysia market serves as a crucial compass for leaders navigating the dynamic landscape of 2024.
"Whether it involves new approaches, recalibrating operational processes, or optimising resource allocation, these data-driven insights can help with proactive decision-making," added Fitzgerald.
According to the survey, the top three biggest opportunities for Malaysia's SMEs in 2024 comprise digital transformation, artificial intelligence and automation (32 per cent), global expansion and e-commerce (31 per cent), and employee education and training (28 per cent).
Additionally, among the challenges for Malaysia's SMEs in the year include cash flow (28 per cent) and lower revenues and customers (23 per cent). - Bernama
