The story that we are about to share with you is truly an interesting one. It is about an individual who bounces back after a tragic event to reach greater heights.
Let’s meet Mr. Sanz Teoh, Chief Executive Officer and Founder of Jumix and his inspiring story below.
Smart Investor: Thanks for taking the time to talk to Smart Investor. Can you tell us a little bit about yourself, about Jumix, and what makes you started the company?
Sanz Teoh: Hi, I’m founder and CEO of Jumix. In 2014, I was almost murdered by a local gangster group. That inexperienced me was trying to work a side hustle while having a full-time digital marketing job.
It was at that moment, I decided that I have to fully commit my time, effort, and energy to my own business. I promised myself that no one else in this world should go through the same experience as I did, and I set out to make this my business mission.
Combining my educational knowledge in marketing and my personal passion in creating digital products, I founded Jumix. It started off as a web design & digital marketing agency, now we also do Branding and NFTs for businesses.
Smart Investor: We heard about your recent foray into the NFT scene with BeU, care to elaborate on that?
Sanz Teoh: Yes, and I’m very excited about this. There’s a story behind why we are doing NFT. Previously during the MCO, we have a long discussion with a creative agency to come out with a ‘Virtual Influencer’ that is set for a launch in late 2020.
My entire team put a lot of effort and commitment into that project. But due to some contractual dispute, the plan didn’t work out. It is then we decide to take things into our own hands, and is determined that we are going to create something new all by our own instead of working with another agency.
This is why we decided to dive into the NFT scene. Being a seasonal cryptocurrency investor and familiar with blockchain technology myself, I proposed to my team that we can use utilize our creativity to create characters, which will then be a set of collectibles on the blockchain.
Starting from scratch, my team brainstorm, sketch, draw, produce and code the entire BeU NFT project. Throughout the entire journey, we learnt a lot more about NFTs and how NFTs can really help brands and creators to bring a lot more to the table.
People who are interested in an NFT project can ‘own’ it and enjoy the benefits or utilities that the NFT project gives.
For example, people who own BeU NFT will get another NFT for free, which is the ‘egg’ of the original character, which will ‘hatch’ and revealed later on. It would remain a mystery for now.
All owners will also get to involve in the roadmap of BeU project, which include deciding on which charity foundation that we will donate our money to, getting access to exclusive BeU merchandise, stand a chance to win life-size BeU figurine, and ultimately, be the first to access the virtual world that BeU created – BeUtopia.
Smart Investor: How big is the NFT industry in Malaysia and are Malaysians ready to get on board the NFT phenomena?
Sanz Teoh: I would say that the NFT industry in Malaysia is still pretty new. But so far I’ve already seen quite a number of artists, creators and brands that have dived into NFTs.
Things are just going to get more interesting for Malaysians, but just like any other market, there’s always a stigma when it comes to adopting or investing into something new.
I believe with more brands and creators embracing NFT with more following suit, this is why Jumix is going to bring more both brands and creators into this industry, and drive the growth of Malaysia’s market together.
Smart Investor: With the recent crash of the crypto market, does it have an effect on the NFT market?
Sanz Teoh: Crypto market has its ups and downs over the years. While I’m not talking about cryptocurrencies trading, the price crash of crypto does affect the NFT market as well.
When prices of crypto drops, it actually makes NFTs more appealing, as you can now purchase NFTs at a much lower price. This makes collecting or investing in NFTs much more approachable to the public.
Smart Investor: Can you share with us your plans for the future?
Sanz Teoh: BeU is only the first NFT project that Jumix pushes out, we’ll have more NFT projects in collaboration with other brands, which would include more utilities, features and more creative concepts.
For the next 6-12 months, other than growing the BeU community, I’m also looking to work with brands who are interested in NFT to build new projects with them.
Smart Investor: What is your advice to Malaysians out there who wants to get involved with NFT?
Sanz Teoh: There will be two groups of people here. The first ones are the brands and creators.
For brands and creators, my advice is to get involved as soon as possible, as the trend is rising rapidly and the attention in this space is high. But please do not take this opportunity as a money grab, NFT is still very community-driven and it should be created for the community, not for your own profit’s sake.
The second group of people are the owners and investors. For investors, don’t take this as a get-rich-quick investment, but something more like a long-term investment. But before putting in your hard-earned money, make sure that you believe in a particular NFT project and do your own due diligence.
For smaller NFT owners, go ahead and support your favourite creators and brands while enjoying the benefits that the NFTs provides, experience how blockchain and cryptocurrency work, and have fun at the same time.
Smart Investor: Can we really make money from NFT, is NFT a good investment to venture into?
Sanz Teoh: I’m not one to tell people that we can ‘earn money’ from NFT. I would tell them to first, truly understand as to what, why and how cryptocurrency, blockchain and NFT exists.
Once you fully understand the benefits of blockchain and NFT, then, like any venture or business, you have to be creative, committed, and create something that people want, or of interest, to be able to ‘make money’ from it.
For the general public, some NFTs project are really good, and has good utilities, visionary founders, responsible project team and for a good cause. These are NFT projects that you can invest into.
For brand and business owners, investing in creating NFTs is a good way to differentiate your brand and business, raise funds, or to offer additional utilities and benefits to your fans or loyal customers.
The potential of NFT is vast. With proper strategy and ethical purpose, NFT is definitely the way to go.
Insurers in Asia are experiencing above inflation rises in the cost of employer-sponsored medical benefits programs over pre-pandemic levels, according to a report by Mercer Marsh Benefits (MMB). According to findings in MMBHealth Trends, costs in Malaysia decreased by 3% in 2020, but increased by 8% in 2021. Insurers are expecting medical costs to further rise by 12% in 2022 – six times the predicted general inflation rate for Malaysia, the third highest increase in Asia, the report noted.
The MMB Health Trends report surveys 210 insurers globally, including 74 in Asia, and identifies key trends influencing the future of employer-provided medical benefits. The results show that five countries in Asia experienced higher medical trend rates than the regional average (8.8%) in 2021, namely India with the highest medical inflation rate of 14%, followed by China (12%), Indonesia (10%), Vietnam (10%), and the Philippines (9%). Overall, 81% of insurers in Asia indicated an upward trend in medical claims activity in 2021, even though 53% of insurers reported lower medical claims than pre-pandemic levels.
Malaysia’s Ministry of Health has estimated that non-communicable diseases (NCDs) cost the Malaysian economy RM 12.88 billion in terms of productivity losses arising from absenteeism, presenteeism or premature death in persons of working age per year.[i].
The MMB Health Trend report reveals that cancer (55%), diseases of the circulatory system (43%), and COVID-19 (36%) were the top cost drivers of medical claims in Asia in 2021, while respiratory diseases (47%), gastrointestinal diseases (36%) and COVID-19 (34%) are healthcare conditions that experienced the most frequent claims.
Joan Collar, Asia Regional Leader, Mercer Marsh Benefits, commented: “Costs have soared despite lower levels of medical treatment than before the pandemic, a trend exacerbated by deferred healthcare treatments that for many have resulted in more adverse outcomes, leading to higher costs. Reducing NCDs remains a key priority for employers for the health of their employees and their business. More than ever, employer-sponsored medical benefits should be viewed as an investment in employees’ well-being. Employees who feel their employer cares about their health and well-being are more motivated, productive, committed, and loyal.”
Gaps remain in mental health coverage though inclusive benefits increase
Of all global regions, the report identified Asia as having the most inadequate coverage in relation to mental health, with only 34% of insurers providing coverage for outpatient treatments in mental health, and just 21% providing coverage for preventive mental health measures. Moreover, 32% do not offer any coverage for mental health services, reflecting a huge protection gap between access to benefits against the burden of mental health risks.
However, the study shows that 33% of insurers are making changes to facilitate more inclusive medical plan designs by allowing coverage for the non-permanent or full-time workforce with 54% either adding or considering extending eligible expenses that are more inclusive for women.
“Employers need to develop a mental health strategy to enhance the overall well-being of their employees and refine their benefits strategy accordingly to align it to their diversity, equity, and inclusion goals and the different needs of their employees. With a sharp rise in the number of employees experiencing burnout and fatigue, this has become a workplace imperative. Employers need to deploy investments and resources to ensure they maintain a mentally resilient workforce,” Ms. Collar added.
The Mercer Marsh Benefits (MMB) is the service value proposition that Marsh brings to its clients. MMB is not an insurance product. In India, an insurance product can be provided only by a registered insurance company. Insurance is a subject matter of solicitation.
About Marsh
Marsh is the world’s leading insurance broker and risk advisor. With over 45,000 colleagues operating in 130 countries, Marsh serves commercial and individual clients with data-driven risk solutions and advisory services. Marsh is a business of Marsh McLennan (NYSE: MMC), the world’s leading professional services firm in the areas of risk, strategy and people. With annual revenue nearly $20 billion, Marsh McLennan helps clients navigate an increasingly dynamic and complex environment through four market-leading businesses: Marsh, Guy Carpenter, Mercer and Oliver Wyman. For more information, visit mmc.com, follow us on LinkedIn and Twitter or subscribe to BRINK.
[1] The Impact of Noncommunicable Diseases and Their Risk Factors on Malaysia’s Gross Domestic Product (2020). Putrajaya, Malaysia: Ministry of Health Malaysia.
The world we live in is highly dynamic and we face different challenges daily. This is even more pronounced if you are involved in the operating a small and medium-sized enterprise (SME). Due to a lack of resources, many SME owners may actually overlook the finer details of managing the operational and financial risks of their businesses.
Many also view paying for insurance as an additional, unnecessary expense or a luxury instead of a necessity. This often results in the average SME owner missing out on crucial protection to cover their business and mitigate risks.
Facilitating Risk Management
The Covid-19 pandemic has provided a timely opportunity for SME owners to reassess and review their business operations. This also includes potential financial risks that could be transferred to insurance companies to minimise potential losses if an unexpected scenario occurs.
Naturally, different types of businesses are exposed to different levels of risk, which calls for different protection plans. The insurance market offers various forms of protection packages in order to suit the unique requirements and needs of each individual SME.
Let’s explore a few major areas that SMEs should consider for protection.
The Basics
Young Asia girl wear face mask turning a sign from open to closed sign on glass door cafe after coronavirus lockdown quarantine. Owner small business, food and drink, business financial crisis concept
The first order of business is to ensure that the operations and premises of your SME are fully covered. This is to ensure assets are protected against financial losses caused by fire, burglary, and/or damage from natural disasters.
A common protection package will include fire insurance cover for the building, fixtures and fittings, and all assets inside, as well as insurance against burglaries.
Depending on the nature of your business (for example food and beverage, beauty, education, office, healthcare, hospitality, retail, construction), SMEs can also opt for optional coverage deemed necessary, such as coverage for loss of income due to business interruptions (consequential loss), breakdown of machinery or electronic equipment, glass breakage, loss of money on the premises, or during the transit between the premises and bank, floods, fallen trees and so forth.
With the basic minimum coverage to protect against fire and burglary, should these unfortunate incidents occur, insurance claims can help to negate or reduce your losses on assets, thereby cushioning the financial blow to your business.
However, there are many other operational risks that occur in running a business. For example, if a small construction or renovation business neglects safety procedures during business activities, this could end up causing injury to employees or even the general public.
Extra money will need to be forked out in order to compensate for the damages, injuries and other related claims. This could pile up to a hefty amount which will affect business cash flow.
To minimise the financial impact of risks associated with doing business, it is advisable to protect your SME against potential claims with various liability insurance options available:
Directors and Officers (D&O) Liability
Coverage is intended to protect individuals from personal losses if they are sued as a result of serving as a director or an officer of a business or other type of organisation. It also covers legal fees and other costs incurred as a result of such a suit.
Employers’ Liability
Protects employers from financial loss if a worker has a job-related injury or illness that is not covered by workers’ compensation. Employers’ liability insurance can be packaged with workers’ compensation insurance to further protect companies against the costs associated with workplace injuries, illnesses, and even death.
Professional indemnity
Often referred to as professional liability insurance or PI insurance, this covers legal costs and expenses incurred in your defense, as well as any damages or costs that may be awarded, if you are alleged to have provided inadequate advice, services or designs that causes clients to lose money.
Public Liability
Covers the cost of claims made by members of the public for incidents that occur in connection with your business activities. Public liability insurance covers the cost of compensation for personal injuries, loss of or damage to property, and death.
Product Liability
Covers manufacturing or production flaws that cause unsafe defects products.
Protecting Your Greatest Assets
Confident Vietnamese business executive with digital tablet working at his table
Did you know that SMEs can also protect against the loss of key staff such as the CEO, CTO or any team member you deem crucial to your business? The loss of such personnel could lead to financial losses due to disrupted sales, loss of creditor confidence, and customer relationships.
Keyman insurance is a protection for SME owners to ensure the company has sufficient funds to keep the business going in the short term before a successor is recruited and trained. The coverage calculation can be ten times of the person’s annual compensation.
It is also important that business owners take care of all their employees. SMEs may consider providing group insurance coverage for employees that includes group personal accident cover for accidental death, total permanent disability, and hospitalisation income.
While group medical insurance provides hospitalisation and medical surgery coverage, these benefits can also be extended to an employee’s spouse and family members.
With suitable protection as a safety net, your business can operate with minimum interruption in the knowledge that should the worst happen, public property can be repaired and employee welfare is taken care of.
Ensuring Business Continuity Interest
Many businesses come to a standstill or even close down when one of the partners passes away or chooses to exit the business. In fact, plenty of SMEs do not generate enough money to buy over the shares of the owner who passed away, making it tricky for the remaining parties to continue the business.
To offer a safety net for business continuation, the company can take up an option on life insurance to provide capital for the required liquidity. Together with a buy-sell agreement and a confirmed share valuation, business partners can buy a policy assigned to an insurance trust as a source of funding to pay for the share of the business partner who passes away or wishes to exit.
This buy-sell agreement effectively keeps business ownership in the hands of existing owners in the event of a sudden exit of one of the partners due to unforeseen circumstances. It can also grant existing partners the first option to buy the exiting owner’s share of the business according to a pre-set valuation formula.
Existing owners can buy out the share through a direct payment to the exiting partner or the partner’s heirs. This also prevents beneficiaries from being stuck in a business they are not interested in, while protecting the remaining partners from being forced to deal with new partners unexpectedly.
I would say that all SMEs should assess their operational and financial risks based on their nature of the business, and seek suitable insurance protection to transfer risk for financial peace of mind.
About the Author
Angel Pau, CFP, IFP is a financial planner with Wealth Vantage Advisory.
We at Smart Investor and Wealth Vantage is committed to help you better manage your financials. Get a free consultation from an expert by filling in your details here: https://www.smartinvestor.com.my/SIxWealthVantage
The Inland Revenue Board of Malaysia (IRB) conducts tax audits to ensure that taxpayers have declared the right amount of income in their income tax returns in accordance with current tax laws and regulations.
There are two types of tax audits that can be carried out by the IRB, namely, desk audits and field audits.
Desk audits are conducted on the supporting documents requested by the IRB from selected taxpayers in relation to the taxpayers’ business transactions and income tax paid. As the name suggests, field audits are usually carried out at the taxpayers’ premises. However, during the Covid-19 pandemic, the IRB officers have been mainly conducting desk audits to comply with the standard procedures enforced by the Malaysian government.
The period of review for the tax audit ranges from three to five years of assessment. Cases selected for tax audits are mainly based on risk assessment, third party information, specific industries targeted by the IRB, specific issues related to taxpayers, etc.
A tax investigation is another approach adopted by the IRB to examine documents relating to taxpayers’ business and financial matters, including their personal documents. While there is a limited period of review for tax audits, there is no limitation as to the investigation period, but it normally covers five years of assessment based on the IRB’s current practice.
The modus operandi of the IRB investigation officers is to carry out an inspection visit to taxpayers’ business premises, residences, tax agents’ premises and other related premises. Taxpayers may be chosen through a random selection and computer screening process.
The basis of selection of investigation cases includes risk analysis, insider information, intelligence information and information from other law enforcement agencies. During the Covid-19 situation, the IRB investigation officers have cancelled inspection visits. As an alternative, desk investigations which are similar to desk audits are carried out.
A comparison between tax audits and tax investigations conducted by the IRB officers is as follows:
Source: Crowe KL Tax Sdn Bhd.
Taxpayers should be aware that a tax audit is merely an examination of records and does not imply that taxpayers have intentionally made errors in their income tax returns. Having said that, one should be prepared for a potential tax audit or investigation by keeping in mind the following information.
Keep Sufficient Records For Seven Years
Taxpayers are required to keep sufficient records for a period of seven years from the end of the year to which any income from the business or operations relates. This means keeping records in manual or electronic form to explain each transaction, that have enabled a true and fair profit and loss account and balance sheet to be prepared.
Although tax audits or investigations may only involve examination of accounting records for a period of three to five years of assessment, it is mandatory for taxpayers to keep sufficient records to avoid a penalty of RM300 to RM10,000, or imprisonment of up to a term not exceeding 12 months, or both.
Supporting Documents For Any Payments Made
During a tax audit or investigation, the IRB officers will request for supporting documents for expenses incurred or payments made. Invoices, purchase orders, receipts or any proof of payment are essential to substantiate the expenses claimed in the tax computation.
Otherwise, the expenses claimed will be disallowed for deduction.
Payments Made To Non-Residents
The payments made to non-residents such as royalty or contract payments may be subject to withholding tax. If the payment is subject to withholding tax but no withholding tax had been deducted and remitted to the IRB previously, taxpayers are not allowed to claim tax deduction for these payments.
As such, taxpayers are advised to determine the withholding tax implications for any payments made to non-residents.
Accruals Or Provisions For Expenses
The deductibility of expenses depends on the nature of expenses. If an expense is an accrual amount (an amount set aside for a known expense) and taxpayers are able to provide the relevant invoices or other supporting documents, i.e. the final amounts are ascertainable, the expense will be allowed as a deduction. However, if the amount is merely an estimate and no supporting documents from a third party are available to prove the expense, the expense may be disallowed.
Segregation Of Expenses Between Separate Business Sources
If a business entity carries out several business activities which are distinctly different from one another and therefore treated as separate business sources for tax purposes during a year of assessment, taxpayers should be able to segregate the expenses incurred in respect of the different business sources with proper justifications.
Taxpayers should take note that different expenses may be allocated by using different bases of apportionment to ensure that allocation of expenses between different business sources is fair and reasonable.
Capital vs Revenue
Tax authorities and taxpayers frequently have major contentions about whether a receipt is capital or revenue in nature. If a taxpayer has received a large lump sum of income during a year of assessment, it is important for the taxpayer to determine the taxability of the income received or obtain a tax opinion from a reputable tax consultant as to its tax position.
An assessment of the income received based on the badges of trade or other tax principles may provide the relevant indications as to the taxability of the receipts.
Allowance For Doubtful Debts Or Bad Debts
It is common for business entities to make provisions for doubtful debts or write off bad debts if the trade debtors fail to settle their amounts owing due to various commercial reasons. Based on Public Ruling No. 4/2019, Tax Treatment of Wholly or Partly Irrecoverable Debts and Debt Recoveries, taxpayers are required to take reasonable steps to recover the doubtful debts or bad debts, e.g. issue letters of demand, reminder letters or other correspondences.
Otherwise, the IRB may disallow the doubtful debts or bad debts recorded in the financial statements.
Direct Expenses Incurred In Respect Of Other Income
Taxpayers may receive other income in addition to the business income from their business operations. To gain maximum deduction, taxpayers may need to identify the direct expenses incurred to generate the other income as these expenses are not allowed for set-off against business income. Any adjusted loss (income less allowable expenses) derived from the other income is a permanent loss for taxpayers.
Taxpayers will need to keep the supporting documents for direct expenses incurred because the IRB may verify these documents during a tax audit or investigation.
If the above cannot be properly substantiated during an IRB’s tax audit, any adjustments made by the IRB would result in additional tax payable and penalties being imposed under Section 113(2) of ITA. Therefore, taxpayers should consult their licenced tax agents on the taxability or deductibility of income or expenses prior to the transaction taking place or prior to submission of income tax returns.
About the Author
Dr. Voon Yuen Hoong is an Executive Director of Crowe KL Tax Sdn Bhd.
Most investors swear by the saying “Never put all your eggs in one basket”. They usually invest in various types of investment vehicles by putting more money into safer types of investments rather than the riskier ones. Previously, most Malaysians chose shares, unit trusts, real estates, fixed deposits and bonds as the main vehicle to grow their money.
Over the last few years, a range of new investment vehicles have emerged in Malaysia, namely, cryptocurrencies, peer-to-peer (P2P) financing, robo-advisors and equity crowdfunding.
As the saying goes, there are two things you cannot avoid in life – death and taxes. This article aims to explore the tax concerns when investing into certain types of investment vehicles in Malaysia, with a greater focus on these popular, emerging investment vehicles:
1. Shares
Over the shoulder view of and stock broker trading online while accepting orders by phone. Multiple computer screens ful of charts and data analyses in background.
When investing in shares or stocks, investors may focus on investing either for dividend yields or capital gains. Any capital gains on shares are not subject to tax under the Malaysian Income Tax Act, 1967 (ITA).
However, if the activity of trading in shares is frequent enough, the Malaysian Inland Revenue Board (IRB) may treat the gain as a revenue gain which will be taxable. Alternatively, dividends distributed by a company is taxed at the company’s level as a final tax. Hence, dividend yields are exempted from tax in the hands of the shareholders.
2. Unit Trusts
The return on investment for unit trust holders is usually in the form of income distribution or capital appreciation which is derived from the pool of assets supporting the unit trust fund. Generally, unit holders are subject to tax on their share of the total taxable income of the unit trust.
The distribution received by the unit holders are net of tax. In this regard, unit holders are advised to check their dividend statements to identify the Section 110 tax credit. Unit holders are entitled to utilise this tax credit to offset against any income tax payable by them. In the event the tax credit exceeds the tax liability of the unit holder, the excess will be refunded to the unit holders.
3. Equity Crowdfunding
Happy young Asia businessmen and businesswomen meeting brainstorming some new ideas about project to his partner working together planning success strategy enjoy teamwork in small modern home office.
Start-ups and small-to-medium enterprises often use equity crowdfunding to raise funds from the public. The term “angel investor” is usually related to equity crowdfunding. An angel investor is generally a high net-worth individual who invests in start-ups.
In Malaysia, angel investors are accorded tax incentives in terms of a tax exemption of up to RM500,000 per year in the second year of assessment following the year of assessment in which an investment is made. Prospective angel investors are required to apply to the Malaysian Business Angel Network (MBAN) to ensure that the eligibility criteria are met and to accredit them as angel investors (see Public Ruling 12/2020, IRB).
4. Cryptocurrencies
The IRB has mentioned that all cryptocurrency transactions will fall within the ambit of the ITA. The IRB referred to Section 3 of the ITA where any gains from trading in cryptocurrencies will be taxed if it is revenue in nature for the investor.
Therefore, gains made by occasional trading in cryptocurrencies should be viewed as capital gains and under the local tax law, capital gains are not taxed.
With that said, the Malaysian tax authorities have recently updated its Guideline on Taxation of Electronic Commerce Transactions in 2019 to include digital currency under its scope of charge. This now effectively allows the IRB to collect revenues generated by cryptocurrency trading.
With the absence of any provisions in the Malaysian tax law on taxing virtual assets, investors involved in digital currency activities are strongly advised to keep their transaction records and any relevant documents for seven years in case of a tax audit.
5. P2P Financing
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P2P financing is akin to traditional borrowing with the exception of a financial intermediary such as a bank or financial institution. Therefore, the subject of concern in P2P financing will be the interest earned. So will the interest income be subject to tax? Yes, the interest earned is taxable for both Malaysian resident and non-resident investors.
What is the tax treatment on your P2P interest earned? While Malaysian resident investors will need to declare the interest earned as interest in their annual income tax returns, the P2P financing operators will directly deduct 15% withholding tax at source for non-resident investors.
6. Robo-Advisors
Certain investors prefer to simply let a third party handle the investment aspect of their money. This is possible with the existence of robo-advisory platforms which use algorithms to allow an investor’s portfolio management to be automated.
Robo-advisor platforms typically invest in exchange traded funds (ETFs) which are a compilation of stocks, bonds and other investments. Furthermore, most robo-advisor platforms in Malaysia tend to focus on foreign ETFs.
Investors should be aware that the dividend yields from trading in foreign ETFs may be subject to withholding tax depending on the jurisdiction of the ETF. The distributions received from the foreign ETFs will be exempted from tax in Malaysia as it is considered a foreign source of income.
About the Author
Shanthini Parama Dorai is a Tax Senior Manager at Crowe Malaysia PLT. Crowe Malaysia PLT is a member firm of the Crowe Global network of independent accounting and advisory services firms. She can be contacted at shanthini.dorai@crowe.my.
As of 2020, there are over 1.1 million SMEs registered in Malaysia, making up about 97.2% of total business establishments in the country. Microenterprises make up 78.4% while small businesses account for 20% and medium ones are 1.6%.
With JustLogin making its debut in Malaysia, the leading HR Cloud software provider from Singapore offers a suite of HR and office collaborative applications with its mobile-first and employee-first approach tailored for today’s hybrid and remote workstyle where digitalisation is at the forefront.
JustLogin is not only payroll-focused as it has a host of solutions including SafeClock – all of which enhance the productivity and office efficiency through streamlining administrative work processes and communication channels.
Recently, Smart Investor did an exclusive interview with Mr. Chan Chiou Hao, COO of JustLogin to share his insights.
1. Why is it so important to adopt digitalisation within the SME community?
In line with the challenges faced by SMEs, many do not have the budgets that larger organisations have when it comes to hiring the necessary headcount required to run their companies efficiently. However, with the advent of technology, especially the democratisation of enterprise software with cloud technologies, it has enabled SMEs to do more with less. They are able to be more effective with less people and are able to outsource more functions of their business.
In a time-starved era, it’s more crucial than ever to adopt digitalisation. SMEs will risk being left behind when it comes to meeting their customers’ demands if their core business operations or structure is compromised or neglected.
Only with a solid base foundation, SMEs can focus on ‘important’ matters – which include making informed business decisions, enhancing productivity and increasing efficiency and accuracy.
We believe that in order to grow the economy, the necessary essentials are needed to kickstart or digitise business operations. We have seen a boom in start-up ventures over the years with the trend of businesses moving towards digitalisation and the IR4.0 era.
2. How are HR, tech and business related? And how do these aspects affect how a business would operate?
In most businesses, HR costs (e.g.: salaries) are usually one of the biggest (if not the biggest) costs in a company’s P&L. However, it is quite surprising that a lot of businesses tend to under-invest in HR or systems that support their HR.
Take constructing a building for example. Without a proper or solid base foundation, it will be at risk of collapsing as it is vulnerable.
This applies to businesses as well. At the core of every organisation, these 3 key elements (HR, tech and business) make up the backbone of the company. With the integration of these key elements, other ground work will operate at a smoother pace.
3. Tell us about the tech behind JustLogin’s solutions. What are the key features set to be a gamechanger in the Malaysian business landscape and how were these features developed?
With the advent of the gig economy, more and more companies are finding themselves hiring a mix of permanent, part-time and gig workers. This has further complicated how HR operates as they have to deal with complex requirements. JustLogin’s HR Cloud is perfectly suited for this new workforce. Some of JustLogin’s features include digitised expense claims, employee time management, leave entitlements which includes medical, compassionate and maternity, benefit management, people insights, payroll management and SafeClock, an all-in-one contactless temperature scanner, attendance tracker and door access.
These features are fully updated and integrated to comply with Malaysian statutory regulations. JustLogin can also automatically generate EA forms, for example and is always up-to-date with contribution rates and other policy changes made by the Malaysian government.
JustLogin’s mobile app allows employees to handle HR matters wherever they are – at home, on the bus, or at a cafe. Whether they have to apply for leave, download their payslips or look up their colleagues’ contact, it’s all there in their pocket.
4. As a pioneer in HR on the cloud, what are some significant changes that you have seen in the industry in the last 2 decades?
Companies are now moving towards the cloud. A lot of business owners are starting to be more comfortable with having their corporate systems on the cloud. This has increased the ability of small companies to punch above their weight. They are no longer limited by the budget requirements of enterprise systems of the past.
With more than 50% of the workforce being millennials or Gen Z, it has caused a seismic shift in how companies retain employees. If your systems are still archaic and manual, chances are companies will have a harder time hiring and retaining employees from these generations of workers. Companies need to start thinking of mobile and employee-first approaches.
There is constantly an upgrade or update in the host of solutions offered in the market. However, not all of them are suitable or customisable to meet business needs. What is commonly lacking is the integration between these solutions, which can be quite challenging when it comes to syncing to a business’s operations. Business owners often find redundancy in multiple apps/platforms that will need to be used.
Now, we have a varying selection of helpful tools on the cloud. Take for example, JustLogin has essential tools from onboarding new employees, Payroll, Leave, Attendance, Expense management, Mobile App to SafeClock – all integrated on one platform!
5. Why has JustLogin decided to venture into Malaysia?
Based on the latest data in Malaysia Statistical Business Register (MSBR) released by Department of Statistics, Malaysia (DOSM), the total number of SMEs in Malaysia in 2020 was 1,151,339 or 97.2% of total business establishments.
On average, the number of SMEs has increased by 4.9% every year since 2015. The services sector has consistently accounted for more than 80% of all SMEs whereby in 2020 it contributed 85.5%, amounting to 984,643 SMEs. The construction sector climbed up to be the second largest contributor during the year by contributing 7.4% (85,637).
Meanwhile, about 5.1% of SMEs (58,439) were involved in the manufacturing sector, followed by 1.7% (19,130) in the agriculture sector, with the remaining 0.3% (3,490) in the mining & quarrying sector.
In terms of size, microenterprises accounted for 78.4% (903,174), the largest share of SMEs. There has been an increment of 209,504 microenterprises, registering an average growth rate of 5.4% every year from 2015 until 2020. The small-sized formed 20.0% (229,876) of the total SME establishments and the balance 1.6% (18,289) were medium-sized SMEs.
Seeing this data, it was only natural for us to expand to Malaysia, as the Malaysian business landscape is made up of more than 97.2% of SMEs. With more start-ups and SMEs emerging in the market in the last 3 years, it is considerably timely for us to come in and equip start-ups, SMEs and business owners alike with the right solutions to further streamline business operations and enhance productivity.
With Malaysia’s market size aside, we want to be part of Malaysia’s SME digitisation journey. We have seen many of our customers experience success by implementing JustLogin and have stayed with us for many years. We hope to see the same success and growth with our Malaysian customers too.
6. JustLogin is offering an exclusive 6-month complimentary trial to all SMEs with valid SME Status Certificate by SME Corporation Malaysia (SME Corp. Malaysia). Are there any other collaborations in the pipeline?
Yes, we are constantly on the lookout to collaborate with different agencies, partners and authorities which are relevant and will aid the market in Malaysia.
7. What are the requirements needed to get started with JustLogin?
If you have a stable WiFi or Internet connection and a smartphone, you are set to go – it’s that simple!
In a nutshell, as long as you have access to the Internet (via mobile, desktop, tablets etc), you will be able to use JustLogin.
8. Do share about JustLogin’s expansion efforts to Malaysia.
Our objective is to definitely help SMEs nationwide solve HR problems with our products, driven by intuitive design and innovative technology. JustLogin’s customers no longer require manual data entry or tedious administration, just productivity and an employee-first approach.
In terms of East Malaysia, it’s an untapped market where we would like to have our presence in the Sabah and Sarawak region. For one, as Sarawak is moving towards a digital economy, it’s the perfect timing for us to expand our services to benefit entrepreneurs, SMEs and business owners, as long as the demand is present.
According to the Economic Census (2016) by Department of Statistics Malaysia (DOSM), Sabah and Sarawak are both among the states each with a large presence of SMEs of over 6% and growing, apart from Selangor, WP Kuala Lumpur, Perak, Johor and Penang. We believe that this number will continue growing and we are excited to embark on our services in these states.
About JustLogin
What is JustLogin?
JustLogin is the premier Software-as-a-Service (SaaS) provider offering a suite of HR & office collaborative applications for the global business community. We are an award-winning software and expert cloud-based HR company from Singapore that strives to understand the administrative pains of any business.
Ranging from managing staff leave to the dissemination of payrolls and claims, JustLogin has just the right solution for all businesses, including start-ups and Small Medium Enterprises (SMEs). We emphasise productivity and a mobile-first and employee-first approach, that is tailored to meet individual needs. Our solutions are unique and are aimed at saving time, manpower and money while increasing productivity, efficiency and accuracy.
How does JustLogin work?
It allows users to access and download payslips on the go, apply for leave anytime anywhere, deal with expense claims effortlessly and clock-in and out of work via its face recognition technology. The snap, scan and send functions also make submitting claims hassle-free and seamless.
Instead of being bogged down with tedious forms and manual data entry for both HR and staff, JustLogin steps in to automate and streamline the administrative process powered by AI and microservices technology.
When was JustLogin established?
JustLogin was established on 3 February 2000 and we have just celebrated our 22nd anniversary!
What was the inspiration behind JustLogin?
JustLogin began with the goal of simplifying and automating HR, so companies can devote more time to people and productivity – not paperwork. We pioneered HR on the cloud back in 2000 so small to mid-sized businesses could enjoy the productivity only availed to big enterprises with deep pockets back in the day. HR on the cloud enabled small businesses to subscribe to enterprise-level software for a fraction of the cost without having to invest in their own R&D.
Are there any plans for regional expansion?
Yes. Before we tap into different markets, we will first identify and conduct market research on the regions with potential for growth which will benefit from JustLogin.
Which industries can benefit from JustLogin?
Just about any industry across the board can enjoy our solutions ranging from Retail, F&B, Tech, Consulting to Manufacturing.
How can I ensure that there isn’t any data or security breach of my company’s assets or sensitive information with JustLogin?
We’re certified compliant with ISO 27001 standards, a widely-recognised security management standard that dictates best practices and comprehensive controls for an information security management system (ISMS). The ISMS includes people, processes and IT systems by applying a risk management process.
The certification requires us to:
Systematically evaluate our information security risks, taking into the account the impact of company threats and vulnerabilities
Design and implement a comprehensive suite of controls and other forms of risk management to address company and architecture security risks
Adopt an overarching management process to ensure that the controls meet our information security needs on an ongoing basis
The ISO 27001 certification is specifically focused on the JustLogin ISMS and measures how our internal processes follow the ISO standard. The services included in the scope for our ISO 27001 certification include: Payroll, Leave, Clock, Expense, Benefit and People.
Who is the Certifying Agent for JustLogin?
JustLogin’s Certifying Agent is TÜV SÜD Management Service GmbH, an established and internationally recognised testing body, whose certifications are well accepted by manufacturers, third party buyers and government authorities worldwide.
How does one begin using JustLogin?
We offer a 14-day free trial (www.justlogin.com/my/free-trial) where potential customers can see how our solutions can work for them. Our friendly employees are also happy to chat and provide more in-depth detail for customers by tailoring services to business needs. Simply connect with us via our website or at our landline numbers available at www.justlogin.com.my
Who are some of JustLogin’s customers?
Some of our customers include IKEA, Sumitomo Chemicals, Valentino, Owndays, Toyota Tsusho, Asus, Hansgrohe, Nippon Airways, Roquette Asia, and more.
Malaysian customers include Inside Scoop, Rinnai and Sunway Medical Centre, and more.
How many customers does JustLogin have?
Over 2,500 customers have enjoyed our services over the course of 22 years from different regions.
What is JustLogin’s current workforce size?
We have over 85 professionals at JustLogin.
Which countries are JustLogin’s customers from?
We have been fortunate to have customers from Australia, Belgium, Cambodia, China, Cyprus, Fiji, Holland, Hong Kong, India, Indonesia, Japan, Korea, Malaysia, Maldives, New Zealand, Philippines, Singapore, Switzerland, Taiwan, Thailand, UAE, USA and Vietnam.
A well-coordinated team is a true asset to any organisation. According to research on team dynamics and performance, diverse and inclusive teams tend to make better decisions and are more innovative.
Striving to increase workplace diversity is not an empty slogan — it is a good business decision.
Diversification and equity initiatives are critical to a company’s success. However, these aspects don’t mean anything in the absence of an inclusive workplace. So the question becomes – how do employers establish a workplace that prioritises all three elements?
Diversity, Equity & Inclusion In the workplace
Diversity in the workplace usually involves people from different backgrounds, ethnicities, genders, ages working together without any disparagement. It usually refers to a gender ratio that is balanced, but it can also refer to people of non-binary genders. As a result, it can be defined as a balanced representation of all genders in any workplace.
On the other hand, equity is the value of being fair and equal based on individual contributions. There may be some confusion as to the difference between equity and equality. While equality means being equal to everyone by providing the same benefits to all, equity is an organisation’s ability to offer flexi-benefits according to individual needs so that they are able to reach their full potential.
Workplace equity is all about empowering employees and ensuring that everyone is on an equal footing. When organisations promote equity in the workplace, they gain a competitive advantage by employing a diverse workforce. There is equal opportunity when there is equity.
Inclusion is the state that provides each and every employee with a sense of belonging despite gender racial and age differences. Workplace inclusion efforts help to give traditionally marginalised groups, even those with physical or mental disabilities, a way to feel equal in the workplace.
However, because we are human beings driven by emotions as much as objectivity, it is easy to fall short of what constitutes a best practice and mistakes happen. To safeguard all employees and to ensure the highest standards of diversity, equity, and inclusivity, nonetheless, I would recommend using an automated system like WorkSmartly.
With a trusted tool that is unbiased, employers can be more assured of employees having access to equal opportunity.
How Organisations Can Develop Diversity, Equity & Inclusion
Human resources, Talent management and recruitment business concept and empty copy space for your text
Developing equitable workplaces will require sustained and prolonged efforts on the part of management and Human Resource (HR) teams as the most effective way to implement major changes effectively is through the top-down approach. Understanding internalised biases and their effects are the first steps in building equitable work environments as everyone was brought up differently and coming from various walks of life. This leads to different work experiences.
Everything should be colourless and generous to every employee, with a focus on matters or incidents rather than individuals. For example, companies should look to have a neutral time (example: company fiscal year) to hand out bonuses during “neutral” time periods, rather than during festive periods like Chinese New Year, Hari Raya, Deepavali as this may show bias toward a particular race.
Additionally, recruiters should demonstrate neutrality when selecting candidates. They should hire new employees based on their performance, skills, and capabilities, not on their own culture or other factors. Robust HR platforms like WorkSmartly filter candidate profiles and resumes according to their achievements, skills, and suitability. This would be particularly useful here as automated systems do not run the risk of being swayed by non-work-related differences. Ultimately, this ensures transparency in an environment that prioritises growth.
Another aspect to look forwards to is increasing digitisation which will create more opportunities for diversification. From remote work options to the rise in the gig economy, employers are no longer forced to default to traditional work practices. New generations are becoming more open and their cultural acceptance has increased due to greater exposure via technology. For example, the way the current workforce thinks and acts is getting more unified based on the influence of social media.
Challenges that Malaysian Employees Face in the Workplace
Skyscrapers in Kuala Lumpur, Malaysia City Center skyline.
In Malaysia, 56% of women have experienced at least one form of gender discrimination in the workplace, according to the “Voices of Malaysian Women On Discrimination & Harassment in the Workplace” survey. Women’s low participation in the workforce could be due to a variety of factors, including discrimination, harassment, and a greater unpaid care burden, which affects both employees and job seekers.
Besides that, people who have been out of work for a while have typically found it much harder to get a job. If being unemployed and finding a job weren’t hard enough already, research shows that large work history gaps are the main reasons that unemployed people aren’t getting hired. Prejudice against the unemployed isn’t limited to those who have been out of work for a long time, it can also apply to those who have recently quit or lost their jobs.
While this has been an ongoing problem for many during the pre-pandemic period, those who faced retrenchment due to pandemic-related business closures have been particularly hard hit.
It is also important to note that diversity, equity and inclusion can’t be achieved when there is bias in the hiring process-the number one step for organisations to build strong, long-lasting foundations. Most companies typically lean towards hiring more experienced employees rather than fresh graduates. Many employers believe that this hiring strategy makes the transition easier as they already have background experience.
The downside to this practice, however, is that it limits the opportunities and options for fresh graduates to learn new skills and demonstrate their talents to a company, eventually resulting in an out-dated talent pool. Therefore, I urge organisations to keep their windows as open and inclusive as possible to provide younger talents with opportunities to grow, thereby making way for fresh, new ideas that could result in a breakthrough.
It’s important to value diversity, equity, and inclusion. They make organisations stronger and more agile, and they are more important than ever in today’s rapidly changing business environment. Leaders who want to make significant progress should apply universal principles with care to their unique cultural and strategic circumstances. It’s important to consider the context.
This article is written by Victor Phang, CEO and Founder of WorkSmartly
About WorkSmartly
WorkSmartly is an end-to-end HR solution that is designed specifically for HR processes throughout the employees’ work life cycle. It began as iTalent in 2008 before being rebranded to WorkSmartly in 2018. With 8 offices globally and more than 200 clients including several Fortune 500 companies, WorkSmartly is aspiring to be the leading enterprise HR-tech provider globally. Among WorkSmartly’s clients are EasyParcel, Emart, Exabytes, MDEC, PETRA Mobilia, Pgeon, Roche, See Hup and Sony.
“The Malaysian experience seems to suggest that raising the minimum wage has been good for us.“
The need to implement minimum wages is based on the protection it offers to workers at the lowest income strata. These often tend to be workers from groups often marginalised in society such as youth workers and women. They may not have the bargaining power to demand higher wages without direct government intervention.
For several decades there was a near-consensus among economists that raising minimum wages just like any other floor would substantially reduce employment. Some persist on the potential employment costs argument. However, that view has changed where a majority now view a significant rise to be a good idea.
To understand the shift, it is important to appreciate the natural experiments conducted by Nobel Laurette David Card, who found that increasing minimum wages did not lead to increased unemployment[1]. In fact, it was found to lift many out of poverty and benefit those in the bottom half, including those making more than the minimum wage[2].
There are those who view the implementation of a higher minimum wage as harming low-wage workers as it is an artificial value imposed by the government rather than determined via market forces. This is because those with lower skills or experience tend to have lower productivity levels. Hence, a higher cost structure would put-off hiring of these workers rather than employing them at lower wages until they become more experienced.
However, my opinion is that the wage policy in Malaysia should be based on the domestic context. In 2013, the minimum wage was first set to be at RM 900 per month for West Malaysia and RM 800 for East Malaysia. The rate has since gone up in stages over the years. About a decade later, it is set to reach RM 1,500 per month effective 1st May 2022.
This seems to be a fair rate given that the International Labour Organisation reported that the average minimum wage around the world for developing and emerging nations to be about 67% of the median wage[3]. At the end of 2019 before the pandemic, according to the Department of Statistics Malaysia (DOSM), the median income in Malaysia was at RM 2,442 where the minimum wage was set at RM 1,200 (about 49%). However, according to data from DOSM, the pandemic has lowered the median income to RM 2,206, a minimum wage of RM 1,500 represents about 68% which is in-line with the global average. Given that the economy is expected to see a strong rebound of more than 5.5% in 2022, the median wage can be expected to surpass 2019 levels by 2024. This would eventually represent a minimum wage representing 60% of the median wage.
Research on the implementation of previous minimum wage levels in Malaysia shows that it tends to increase labour productivity, act as a motivator, and reduce employee turnover[4]. In fact, longer terms studies have shown that it reduces unemployment and increases labour participation rates[5]. Research also documents that the previous increase in 2016 also did not result in any significant reduction in labour demand[6].
There have been views that increase of minimum wages may lead to inflationary pressures. For example, if a restaurant owner is suddenly forced to pay his workers RM 1,500 instead of RM 1,200, he needs to raise the price of his product to account for this increase in costs.
malaysia people holding flag celebrating independence day together
But in the Malaysian context, it is likely that most employees in urban areas are already being paid close to the proposed rate of RM 1,500. Thus, there might be very little additional price pressure in these areas. It is likely that the new rate would account for the difference in wages and costs in urban versus rural areas, in-line with the current approach.
In addition, inflation tends to be insignificant as a determinant of employment in Malaysia[7]. In fact, research in Malaysia shows that labour markets in Malaysia tend to follow the efficiency-wage theory where the increase of costs (of higher wages) would be recouped through greater productivity as well as increased employee retention[8]. Thus, inflationary pressures are unlikely to be severe, given that increased productivity would then counter the potential increase in price levels. Thus, it seems that the new higher rate may point towards a positive picture overall.
However, given the potential that it may harm SMEs which are unable to offer higher wages, there is a need to explore a mechanism beyond minimum wages going forward. Imposing minimum wage laws puts the role of reducing poverty on the business owner. But a different approach via social welfare programmes for low-wage workers would allow all taxpayers to share the financial burden. Among areas that would be beneficial to B40 households would include part cover for housing costs, healthcare as well as childcare costs.
About the Author
Professor Dr Hafezali bin Iqbal Hussain is the Head of Research at the Faculty of Business and Law, Taylor’s University and a member of the Centre for Industrial Revolution and Innovation (CIR4I). Taylor’s Business School is the leading private business school in Malaysia for Business and Management Studies based on the QS World University Rankings by Subject 2021 edition.
The new normal of workplaces today is more than just our homes and offices. In Malaysia and across multiple regions, the demand for flexible work practices emerged, with interest in coworking spaces and solutions booming in 2016.
A 2020 global coworking study conducted by CoworkingResources projected that the number of coworking spaces available worldwide would reach over 40,000 by 2024, compared to the almost 20,000 in 2020.
It was not until the pandemic occurred that many businesses collapsed. Most shuttered completely or temporarily as the nation went into lockdown, resulting in the dampening of the emerging market. Many of the companies that stopped operating for a tricky period of time were left behind in the dust, not having the chance to grow or expand their horizons.
Those who managed to continue their operations had to adapt to the regulatory changes and social restrictions. Some operators chose to delay opening new spaces while others were offering discounts to secure tenants and members.
Overall, despite an initial decline in 2020 compared to the year prior, the global coworking industry is still estimated to be on an upward course, set to surpass US$13.03 billion by 2025, with a compounded growth rate of 12%.
While many have settled into working from home, others have opted for coworking spaces as the ideal option, spurring the growth for such operators.
Coworking behind the mask of coronavirus
When people visualise coworking spaces, the notion of a casual high-density community from various organisations has been dispelled. Social distancing has become the key consideration for those utilising the facility – people are required to sit away from one another, socialising frivolously is frowned upon, and people remain behind their masks, working over their devices or taking Zoom calls.
However, the draw behind the coworking movement lies in its flexibility. For individuals with a more flexible schedule, coworking spaces help cultivate a better work-life balance as employees are better able to separate and juggle work and home.
Additionally, more organisations are deciding to take the opportunity to evaluate their office space options, with some foreseeing scaling down their offices as they roll out work from home and hybrid practices.
Before the Covid-19 pandemic hit, some companies were already incorporating coworking spaces into their workplace strategy. By utilising such areas efficiently and effectively to spark teamwork and collaboration, employees can better produce results for business growth as they get immersed in the hybrid culture.
Even as we see large enterprises terminating their office leases favouring flexible work locations, it is important to note that it is the office concept that is changing and evolving – likely in part due to increased flexibility and agility.
What is in store for the upcoming year?
Small to large corporations are always on the lookout for coworking spaces. As Malaysia (and the rest of the world) is starting to open up again, membership rates have picked up as tenants are keen to get back into the swing of things.
Coworking and event spaces have become conventional, offering a viable solution for those unable to work from home. A coworking space provides them with the perfect alternative to signing a traditional office lease for increasing freelancers and remote workers.
In efforts to de-densify and decentralise their office spaces and real estate portfolio, companies are also exploring corporate coworking solutions as they adopt hybrid work models.
In order to stand out, coworking operators are honing in on their key differentiators to bring in and serve as many tenants as possible. For example, as technology continues to evolve, solutions and their integration into the coworking experience become a unique selling point that draws members looking to incorporate automation to boost experiences and productivity. At WORQ, we differentiate ourselves as a community-centric coworking space focusing on community building, not just among members, but also including the wider community.
Assuming the industry continues to remain on track to reach 40,000 spaces available globally, the desire to differentiate from competitors will lead to more purpose-filled options, catering to particular groups of individuals. This could materialise in specialised communities being formed, such as female-only spaces and hacker spaces.
All in all, while addressing social distancing rules and adhering to extra health and safety, the coworking movement is here to stay for the foreseeable future, even post-pandemic. Employers, managers and employees have gotten exposed to the benefits of remote working. They are unlikely to go back to how things used to be pre-pandemic, as coworking spaces are regarded highly for encouraging a more collaborative environment and improved workflow.
With many companies being forced to pivot, digital solutions are in demand.
The sudden pandemic has caused some small and medium-sized enterprises (SMEs) to lose their positions. Most of them are traditional, non-information enterprises, offline businesses, or lack effective digital management models and are isolated by the pandemic.
In the beginning, there was general confusion over high threshold, high costs and long cycle of digital transformation.
“After the pandemic, more and more companies have discovered that accelerating digital transformation can accurately control inventory, improve management efficiency and reduce business operating costs,’’ says Volservers Solutions managing director Tan Yik Jaan. While many SMEs have started to digitise (convert their data and documents into a digital format), they have yet to embrace digital transformation and change their business model; slow internet connection (many industrial estates do not have fibre optics infrastructure) is also a problem.
Digital transformation involves looking at holistic solutions like enterprise resource planning (ERP) and customer relationship management systems. Supply chain management (SCM) has moved to 6PL which is an artificial intelligence driven SCM, but many SMEs have not gone beyond 3PL that offers first stage supply chain integration.
“SMEs need to have a progressive mindset that embraces business transformation with digitalisation (converting business processes to use digital technologies) as a tool,’’ remarks Small and Medium Enterprises Association of Malaysia (SAMENTA) national secretary Yeoh Seng Hooi.
Apart from the lack of financial and skilled resources, SMEs also face challenges in protecting their digital platforms and data from cyber-attacks.
“A difficult part of the digital journey is to find the right partners at an affordable cost,” explains managed security service provider Vigilant Asia group CEO Victor Cheah.
Most SMEs already have two years’ experience of manoeuvring through their digital journey in the pandemic, and a common challenge is the execution and integration of processes.
“The hit to the tech supply chain has resulted in massive delays in many hardware reliant products and solutions, while continuous uncertainty is affecting cost especially on hardware reliant solutions,’’ says IT asset lifecycle management solutions company Rentalworks Malaysia managing director Alan Puah.
SMEs need to have a progressive mindset that embraces business transformation with digitalisation– Yeoh Seng Hooi,SAMENTA
Potential roadblocks The biggest challenge faced by SMEs these days is integration across multiple systems. “The most difficult part for SMEs is the mixing and matching of various solutions that can solve their problems while allowing for future expansion,’’ says Wavelet Solutions CEO Vincent Lee.
To address this integration issue, Wavelet Solutions, an ERP solutions provider for SMEs, provides operational data lake solutions built on Amazon Web Services (AWS) platforms. (A data lake is a centralised repository for structured and unstructured data at any scale, while AWS is the world’s most comprehensive and broadly adopted cloud platform).
For digital transformation, the digital experts from Volservers work closely with brands across various industries to help SMEs grow their brand identity in the market.
Volservers is an experienced market research agency that provides panel and full-service research solutions, online survey programming, hosting and reporting services to the market research industry, and builds a pleasant customer experience for customers’ platforms.
User-centric expertise at Volservers looks deeply into user behavior, expectations and business goals when designing a seamless journey for customers’ products. “We provide interactive UI/UX designs, web and mobile applications for multiple platforms, namely, on Apple and Android, to help maximise customer reach,’’ shares Tan.
In terms of cybersecurity services, Volservers has the capabilities to identify vulnerabilities in clients’ environment and develop strategies to remediate and improve their security posture. Volservers’ services consist of solutions that protect customers’ IT infrastructure such as endpoint protection, web application firewall with anti-DDOS and much more. This includes an experienced security incident response team to ensure minimal recovery time and damage to customers’ business reputation.
In terms of managed IT services, Volservers has multiple platforms of solutions whether it is in cloud or hybrid infrastructure; its team offers support, product consultation and monitoring for multiple operating systems and databases.
Today, there are many cyber threats including zero day viruses and ransomwares which cannot be detected by traditional anti-virus and firewall solutions. Vigilant Asia is able to provide 24/7 monitoring which is bundled with advanced tools to provide protection, detection and remediation services. These tailor-made services include vulnerability assessments, security frameworks and training.
“It is affordable for SMEs to subscribe to our services which are tools provided based on a subscription model, on a per-user-per-month basis,’’ explains Cheah. Concerns over cashflow and work mobility has also prompted many SME to seek leasing programmes for endcomputing devices; short term rentals of preloved or previously used laptops and tablets are highly sought after.
To help customers navigate through the whole asset life cycle process, Rentalworks offers its mobility device leasing programmes with fixed monthly repayments plus cloud-based firewall, flexible tech support and data erasure for device end of life.
“Our specially-curated lease-to-use approach ensures that the process of deployment, maintenance and refresh are all managed by Rentalworks, making it easy for SMEs to focus on growing their businesses,’’ says Puah.
The SME digital journey is a longterm process; despite the economic reopening and return to physical locations, the road to digitalisation has started and will continue to score greater achievements.
