According to the Ernst & Young PLT (EY), Malaysia’s market leaders concentrate on using technologies and internet to rebound and flourish in the new age. EY’s Covid-19 market effects study , conducted between April 27 and May 19, showed that businesses had increased product implementation in reaction to Covid-19 and the resulting constraints.
Thirty-seven percent of small and medium-sized businesses and 32 percent of large and listed firms have taken action to improve or update their technological capacities based on an online survey of about 700 large and listed companies and SMEs.
Datuk Abdul Rauf Rashid, managing partner at EY Malaysia, said Covid-19 emerged as a game-changer for digital transformation stated that about 30 per cent of companies have now invested equipment and apps in ‘Work from Home’ to maintain contact with their workers and increase the efficiency of workers.
Where previous technology interventions and programs have met with tiny responses, particularly from small and medium-sized businesses, Covid-19 has enabled companies to intensify their digital transformation.
According to EY, the Movement Control Order (MCO) has shown that Malaysian companies are inadequately prepared to migrate to a more modern work climate. Most companies (83 per cent large and listed companies; 84 per cent small and medium-sized enterprises) experienced problems with online connectivity and communication with their suppliers and customers, in addition to infrastructure issues.
EY said companies ought to step up their digital transition and push technology-enabled processes and technologies into the new mainstream in readiness for a increasingly global world.
In order to meet this demand and allow digital transformation, EY Advisory Services Sdn Bhd’s Malaysia financial services consulting chief, Shankar Kanabiran, said significant improvements need to be made to the digital and communications infrastructure of the businesses and country, particularly online connectivity and broadband speed. He said approximately 40 % of respondents described improved and less costly internet access as areas for action.
They stated that approximately half of the broad and reported respondents and 40% of SME respondents said they will require significant government support in the foreseeable future in order to regain financial strength and profitability in readiness for economic recovery.
Reminding that Financial assistance, development grants, bonuses, tax reduction, improving tax collection, reduced interest rates and expanding moratoria on key repayments are some of the steps that companies are pursuing. There is also a need for more openness on the part of banks against undertakings impacted by the crisis.