Tuesday 28 June 2022

Impact of COVID-19 on Malaysia's Small and Medium-Sized Enterprises | Chapter 8 | Current Aspects in Business, Economics and Finance Vol. 1

Numerous nations have seen major social and economic repercussions as a result of the COVID-19 epidemic's global expansion. Before the pandemic, Malaysia had the fourth-largest economy in Southeast Asia, and it had been prospering recently. Real GDP growth is predicted to slow down, according to projections from the World Economic Outlook, which was published in April 2021. As a result, the impact of COVID-19 on SMEs in Malaysia becomes the main topic of this paper. A questionnaire survey and interviews that took place in July and early August 2020 were used to collect the data. The SMEs were the subject of this research, which also examined their history, how the COVID-19 problem affected them, notably how much they relied on online sales channels to stay afloat, and the government's small company economic stimulus programme. The results of this study demonstrate that COVID-19 significantly impacts small and medium-sized enterprises in a number of ways. They have demonstrated how the kind and size of businesses have an impact on small and medium-sized enterprises (SMEs). According to this study, some of the repercussions were a change to the digital distribution channel, a decline in product supply and demand, poor output, and financial instability. The study also demonstrated the need of government assistance for SMEs' survival during difficult times. Adopting policies that offer additional stimulus packages for small and medium-sized firms, such as funding, consulting services, and training, has major implications for governments. In addition, governments should encourage non-governmental organisations (NGOs) to offer small and medium-sized businesses (SMEs) financial and non-financial assistance to assist them in coping with the challenges posed by COVID-19 through guidance, training, counselling, and psychological support. The results of this study suggest that in order to preserve their long-term sustainability, small and medium-sized firms should learn from the crisis and develop new plans and strategies.


Author(s) Details:

Hanafiah Hasin,
Faculty of Accountancy, Universiti Teknologi MARA Cawangan Melaka, Kampus Alor Gajah, Malaysia and Accounting Research Institute, Shah Alam, Selangor, Malaysia.

Anita Jamil,
Faculty of Accountancy, Universiti Teknologi MARA Cawangan Melaka, Kampus Alor Gajah, Malaysia.

Yang Chik Johari,
Faculty of Accountancy, Universiti Teknologi MARA Cawangan Melaka, Kampus Alor Gajah, Malaysia.

Eley Suzana Kasim,
Accounting Research Institute, Shah Alam, Selangor, Malaysia.

Please see the link here: https://stm.bookpi.org/CABEF-V1/article/view/7303

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