Based on the CPA Australia Asia-Pacific Small Business Survey 2022-2023 Malaysia market summary, Malaysian small businesses will expect to grow and 2022 has been a stronger year for the nation. During 2022, the report shows 54.6% of businesses grew in the last 12 months and 72.2% of businesses expect the local economy to grow in the next 12 months, exceeding the survey average in 2022.
The strong growth is due to several characteristics, which include innovation, e-commerce and the heavy use of technology. These are the top factors that will impact Malaysian businesses positively from 2020 to 2022, according to the report:
Customer loyalty
Loyal customers are those who keep coming for the businesses products and services because they are happy with what it offers. This makes them come back for more and stick to the brand. As they are satisfied with the offerings, it is natural to recommend and boast about them to others, especially to the people closer to them, such as friends and family. This is what makes it effective and will contribute to more sales and business revenue. The more loyal customers a business has, the less effort it takes for them to draw in new customers.
E-commerce
E-commerce enables businesses to reach a larger audience, potentially worldwide, resulting in higher sales and revenue. Payment options that are given to customers, such as using GrabPay, Touch ‘n Go, iPay88, PayPal and Boost, have resulted in 72.9% of businesses receiving more than 10% of sales. Other than that, e-commerce also reduces costs since there is no need for physical stores, making operations less costly. When they reduce costs, this will allow businesses to increase profits and expand their market reach. Additionally, this will provide convenience to their customers, especially those who are far away from the physical stores. Hence, they can shop anytime without spending too much effort traveling for their products and services. Also, this can be a chance for businesses to expand their reach in the global market.
Cost control
While e-commerce can certainly help control costs for businesses, there are several other strategies that can also bring benefits to cost control. Businesses could reduce costs by, for example, utilizing automation, such as AI, outsourcing and optimizing the supply chain. Other than increasing business profits, they will be able to maintain financial stability and adapt to unexpected market changes.
Positive overall economic environment
When the Malaysian economy is expanding, it will contribute to a positive overall economic environment. With increasing consumer spending and confidence, small businesses experience a surge in demand for their products and services. This will, in turn, drive business growth and expansion. Furthermore, Malaysia’s strategic location and strong international trade linkages provide opportunities for small businesses to enter global markets, aiding their rapid growth trajectory.
Conclusions
Overall, small businesses in Malaysia are growing fast because of technology, innovation, e-commerce and the positive economic environment. Due to this, customers keep coming back, resulting in loyalty, which leads to profits, an increase in revenue and growth. All of these factors combined are helping small businesses in Malaysia grow quickly and succeed.
