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Association of Chartered Certified Accountants (ACCA) conducted a survey and found that businesses in general were not at all prepared to face the Covid-19 crisis, especially when faced with cashflow problems.
The survey had 10,000 respondents, including 919 finance professionals in Malaysia.
According to The Sun, 24% of businesses could fold within the next six months, while up to 49% could go under in 12 months.
Since the start of the pandemic, less than half (47%) have successfully implemented a business continuity plan (BCP). 20% said that they BCPs were not effective in dealing with the crisis, while a third (33%) had no BCP at all.
The ACCA Malaysia country head Edward Ling told The Sun that businesses should establish a dedicated crisis-management team in response to the difficult times and stay informed on updates regarding government policies.
Response to the crisis can include signing up for economic stimulus plans, cooperation with government programs, or even proactive business marketing.
Edward Ling also mentioned that ACCA had set up a Covid-19 Global Online Hub to help organisations deal with the impacts and implications of the pandemic. Businesses may be able to make better decisions with reference to financial experts and their analysis of financial data and trends.
The crisis is also a good time to look for opportunities to improve and innovate, he says. This disruptive period can make change easier, such as streamlining business operations to make it more efficient and agile. An example is how many businesses in Malaysia have embraced working-from-home as an option for their employees.
Ling also cautions businesses to not overlook their employee’s well-being either. It’s important to implement human resource policies that address the crisis with a cohesive communications plan that will engage and update employees regularly.
Anne is an advocate of sustainable living and the circular economy, and has managed to mum-nag the team into using reusable containers to tapau food. She is also a proud parent of 4 cats and 1 rabbit.