Summary
Highlights
His concluding advice to SMEs is to contribute to winning the fight against COVID-19 by adhering to rules (staying home, social distancing). Businesses should prepare their own Standard Operating Procedures (SOPs) to ensure customer comfort, including social distancing measures, hand sanitizers, staff hygiene, and avoiding congestion. These will become the 'new normal' for operations.
Noor Azmi Mat Said, CEO of SME Corp, introduces himself and the organization's role as the central coordinating agency for SMEs in Malaysia. He highlights his background as an entrepreneur before joining SME Corp, with experience in business consultancy and technology-based startups.
Noor Azmi provides statistics on SMEs in Malaysia, stating there are approximately 1 million SMEs, constituting 98.5% of total business establishments. He elaborates on the classification of micro, small, and medium enterprises based on revenue and employee count, and the criteria for businesses to fall under SME Corp's purview, excluding public listed or government-linked companies and specific financial or agriculture sectors.
He discusses the significant shift in SME behavior from pre-MCO optimism to the current challenges. The MCO period presents a 'war' against COVID-19, requiring a balance between health and economic issues. He notes that 70% of SMEs rely on physical businesses, leading to no income but ongoing commitments like rent and salaries. The government's stimulus packages, including moratoriums and discounts, aim to assist.
Noor Azmi emphasizes that consumer habits have changed permanently post-MCO, with a shift towards takeaways, DIY cooking, and online platforms. He advises F&B businesses to adapt to these changes and address customer fears regarding physical interaction. He also highlights the need for businesses to innovate product offerings and acknowledge that recovery times will vary across industries.
He stresses the importance of all stakeholders – government, SMEs, employees, and landlords – playing a role in sustaining the economy. He hopes for compromise on salary reductions and landlord assistance with rent. While unable to disclose details of upcoming stimulus packages, he assures that all feedback from associations and individuals is being considered by the Ministry of Finance.
Noor Azmi highlights SME Corp's existing programs like SME Bizar, which offers matching grants for business automation (e.g., ERP systems, integrated POS). He also mentions the SME Masterclass for CEOs seeking executive education. He notes that SME Corp is re-evaluating its program delivery to incorporate online and virtual approaches due to the MCO.