A survey by express transportation company FedEx Express and SME Association of Malaysia shows that over 50% of Malaysian small and medium enterprises (SMEs) want to grow within Asia Pacific (APAC) region in the first half of 2022.
According to the joint survey titled ‘Levelling Up the Logistics Strategy for SMEs in Malaysia’, the majority of Malaysian SMEs are seeking opportunities in international trade within APAC region, especially within Southeast Asia and East Asian markets such as China, Japan, Korea and Taiwan.
Survey respondents also identified other markets of interest including those in Europe, the Middle East and the Americas.
The survey said more than half (58%) of the respondents indicated they are looking at expanding their business presence, while the remaining respondents (42%) remain cautious.
Over half (54%) cited sustaining sales as their key priority for the first half of the year, amid the continued impact of the pandemic.
One-third (34%) of SMEs want to focus on enhancing operational efficiencies so that their businesses remain sustainable and operational costs are optimized. The remaining SMEs (12%) will adopt a wait-and-see approach in view of the changing business environment.
FedEx Express Malaysia managing director SC Chong said the joint survey with SME Association of Malaysia showcased valuable insights into the current mindset and intent of small to medium businesses in Malaysia.
“We at FedEx Malaysia are already adapting and digitizing with agility to better support these businesses in scaling up cross-border commerce capabilities.
“As an essential service provider, FedEx has operated throughout lockdowns, prioritising our customers’ recovery and e-commerce growth. We are committed to help minimise disruptions to their supply chains, in and outside of Malaysia.
“Our global network helps ensures timely delivery within Asia, as well as the U.S., Canada and Europe, further offering Malaysian businesses the reliability, affordability and customer-focused support they depend on,” said Chong.
SME Association of Malaysia president Ding Hong Sing said Malaysian SMEs are shifting their focus to markets within the APAC region, with intra-Asia trade burgeoning because of rising e-commerce transactions that has driven by the Covid-19 pandemic.
“For SMEs looking to expand their market outreach, there is a prevailing optimism despite the current intense competition in the e-commerce marketplace, economic uncertainty and government restrictions being introduced.
“We believe that there are pockets of opportunities present within the e-commerce sector which will continue to experience an upward trajectory,” he said.
Conducted at the end of 2021, the survey saw participation from 383 Malaysian SMEs, with the majority of them recording up to RM10 million in turnover in 2021.
Over 70% of the companies registered an average of 200 shipments per month last year through e-commerce activities, utilising a mix of logistics services to ship via air and land.
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