KUALA LUMPUR: The most recent edition of the Star Outstanding Business Awards (SOBA) 2021 webinar not only revealed key learnings from managing a business during crisis periods, but also shed light on how small and medium enterprises (SMEs) can forge a foundation for stable growth.

       Titled “#SOS: Save Our SMEs Surviving the Cash Flow Crisis and Planning Your Business Continuity”, the webinar was hosted by 988 announcer and celebrity entrepreneur Chan Fong in Mandarin.

       The first panel discussion saw Associated Chinese Chambers of Commerce and Industry of Malaysia national council member-cum-SMEs committee chairman Koong Lin Loong, Big Onion Food Caterer Sdn Bhd managing director (MD) Liang Foo Kuan, Senz Marketing (M) Sdn Bhd founder and MD Katherine Leong and Klinik Dr Chong Sdn Bhd director Dr Chong Tze Sheng relating to the aspects SMEs can focus on to survive and tackle obstacles to doing business when crisis strikes.

       Despite the shifting priorities in the top challenges faced by SMEs in the first movement control order in March 2020 as compared to this year’s lockdown, Koong pointed out, “The largest problem they face is still cashflow management, in particular in ensuring that they have sufficient funds to pay their overhead costs and set aside money for any unexpected eventualities.”

       Chong stressed that in the short term, the key to surviving the Covid-19 pandemic is ensuring cash flow liquidity.

       Helping SMEs move forward: (From left) Chan Fong, Lee, Pang and Yip share insights on how small companies can embed continuity into their business.

       “We need to take the initiative to approach our suppliers and request to lengthen our credit terms – be it for 30, 60 or 90 days – instead of cash on delivery,” he said.

       With his food and beverage (F&B) business involved in large-scale event catering, Liang noted that aside from looking into ways to reduce operational expenditure, companies need to boost sales through diversifying their products and services or pivoting their businesses by exploring new opportunities with potential.

       Adding that companies needed to be proactive in tapping into available government aid to lessen their burden, he said, “The most important aspects, for an F&B business to continue operating during the pandemic, are our staff and our suppliers. So there must be clear communication and cooperation with these stakeholders to discuss to bring about an outcome that benefits all sides.”

       Focusing on business continuity in times of crisis was the second panel discussion, which featured Maxis Business SME head Kevin Lee, PKT Logistics Group Sdn Bhd chief financial officer Pang Kong Chek and RHB Bank Bhd SME banking head Yip How Nang.

       Sharing his experience with businesses that have not only survived through the pandemic, but also thrived thus far, he said that the reason lies behind the companies being able to properly manage their cashflow, which involves the three key areas of accounts receivable and payable, as well as inventory.

       “In unprecedented times like these, SME leaders need to think of financial institutions as business partners and approach their banks for discussions as soon as they can on financial repayment matters, or where necessary, apply for financial aid or loans,” he said, adding that they can also consider rescheduling and restructuring options.

       Sharing PKT Logistics Group as an example of how SMEs can find solutions to thrive in adversity, Pang said, “Brainstorming and implementing an agile diversification plan that includes innovating your products and services into recession-proof segments, such as e-commerce, can help you expand your customer base to create a diversified revenue stream that can help tide you through any crisis.”

       With the pandemic revealing the necessity of business continuity, Lee said that a significant number of SMEs have been agile in adapting to the challenges arising from the pandemic, as they have leveraged technology and digitalisation to seek new revenue channels and customers.

       “Although SMEs have embraced technology to a certain extent, for the long term, they need to look at adopting solutions that help embed continuity into their business – such as through using seamless remote working solutions – to minimise disruptions in case of any eventuality, without having to invest capital expenditure,” he said.

       SOBA 2021 is organised by Star Media Group Bhd with Credit Guarantee Corp Malaysia Bhd, Maxis, PKT Logistics Group and RHB Bank as the main sponsors and the Malaysia External Trade Development Corp as the official trade promotion partner.

       Supported by the International Trade and Industry Ministry and Bursa Malaysia, it is audited by BDO with 988 and Suria as official media partners.

       For more information on SOBA 2021, call The Star Events at 017-817 8099 or visit www.soba.com.my.