Small businesses to hire more staff after splendid 2018 growth, says survey

CPA Australia says the strong performance among small businesses reflects the sector’s continued focus on being drivers of growth.

PETALING JAYA: Malaysian small businesses did well in 2018 with confidence in business and economic growth at its highest point since 2012, according to CPA Australia’s 10th Annual Asia Pacific Small Business survey,

These businessmen are even more positive that this year will be even better.

CPA Australia Malaysia Country Head Priya Terumalay said the survey results showed a positive shift in sentiment among Malaysia’s small businesses, reflecting the sector’s continued focus on being drivers of growth.

“Malaysia’s small business sector has had a strong 12 months, with 65.5% of respondents reporting that they grew over this period. Looking to 2019, the results are even more positive, with three quarters of small businesses expecting to grow this year.

“The positive shift in sentiment is also reflected in small business confidence in Malaysia’s economy, with nearly 70% (69.1%) expecting Malaysia’s economy to grow, much higher than expectations for 2018, when 53.7% expected the economy to grow,” Priya said in a statement today.

More than 3,600 small business operators in Malaysia, Vietnam, Indonesia, Mainland China, Hong Kong, Taiwan, the Philippines, Singapore, Australia and New Zealand participated in the survey.

The statement did not say exactly how many Malaysian businesses were surveyed.

Priya said it was not surprising that small businesses in Malaysia were bullish about the economy as small businesses focused on factors linked to long-term growth, including innovation, e-commerce and technology.

They also have a strong focus on positive influences of growth such as improved customer satisfaction, attracting and retaining good staff and improved business strategy.

“Small businesses from Malaysia continue to be relatively strong users of digital technologies, particularly in comparison to their competitors from Australia, Singapore and New Zealand,” Priya said.

According to the survey, 43.4% of Malaysian businesses surveyed earned more than 10% of their income from online sales. An overwhelming majority use social media for business purposes, with 45.1% stating that they use it to sell their products or services.

“The positive outlook of Malaysia’s small business sector is translating into jobs, with more than a quarter (25.7%) stating that they added staff in 2018 and are likely to be even stronger creators of jobs in 2019, with 45.1% expecting to add staff,” said Priya.

However, global trade war worries are impacting Malaysian small businesses, with over 33.6% expecting this issue to have a negative impact on their business in 2019, close to the survey average of 34.7%.

However, for some of Malaysia’s small businesses, a trade spat could create opportunities, with 22% stating they expect a trade war to have a positive impact on their business.

“We expect that the positive business conditions experienced by Malaysia’s small businesses in 2018 will continue into 2019, with small businesses remaining focused on innovation, e-commerce and technology,” Priya added. - FMT