7.3% Of SMEs Shut Down Between 2020 and July 2021

SME Corp Malaysia CEO Rizal Nainy said the number of micro, small and medium enterprises (MSMEs) has dropped by 7.3% between 2020 and July 2021.

According to him, the Covid-19 pandemic, Movement Control Orders (MCOs), and December last year's floods had caused many SMEs to shut down.

 

The factors behind the decline

Rizal said the decline was not a surprise because of the pandemic and MCOs that have impacted the MSMEs' operations. Two more critical challenges in the pandemic were interrupted cash flow and the disruption in supply.

He also listed high operating costs as another factor behind the decline. The December 2021 floods affected many MSMEs. He said SME Corp understood that these issues have made it challenging for MSMEs to operate, and they needed support. 

He further highlighted that SME Corp is dedicated to helping MSMEs overcome their obstacles.

Rizal said that more than 7,000 entrepreneurs accepted assistance from SME Corp last year. SME Corp acknowledged that with limited funds, it could not help all MSMEs in the country. But, those who have accepted its assistance have displayed a positive growth in recruitment, revenue, sales and profit. 

 

SME Corp's MyAssist MSME

Czarif Chai Abdullah, SME Corp's business advisory and support division senior director, talked about the many programmes SME Corp provides to help MSMEs in this nation.

SME Corp's programmes include the MyAssist MSMEs programme, which is created to assist SMEs in overcoming their challenges by offering them advisory services, access to financing opportunities, and business matching services. 

Under the MyAsisst programme, SME Corp has developed a specialised online portal named MeetMe. MeetMe is a conducive and comprehensive platform that enables SMEs and entrepreneurs to get advice from business counsellors online. Some of the topics that you can discuss are:

• Financial Management,

• Marketing and branding,

• Laws,

• Financing,

• Export,

• Supply Chain Management, 

• Labour Management,

• Operations,

• Certification,

• Technology Applications,

• Packaging,

• Intellectual Property and more.

SME Corp has also launched a webinar series to help MSMEs enhance their business management skills to grow their business. Soal Usahawan is a series of online Pocket Talks on entrepreneurs and SMEs. It serves as a platform for entrepreneurs to exchange ideas, connect and find support to overcome challenges. Soal Usahawan also functions as a channel to provide business advisory services and the dissemination of information.

It features: 

• Subject matter experts,

• Resourceful speakers,

• SME Corp. Malaysia's Business Counsellors, and 

• Inspiring entrepreneurs.

If you wish to learn more about MyAssist MSME, click here.

 

SME Competitiveness Rating for Enhancement

Czarif also encouraged SMEs to use the SME Competitiveness Rating for Enhancement (SCORE) to assess their strengths and weaknesses and identify areas for improvement that will allow them to become more competitive in the marketplace.

The SCORE is a diagnostic tool used to rate and enhance the competitiveness of SMEs based on their performance and capabilities.

To learn more about SCORE, click here.

 

Source: The Malaysian Reserve