Partner’s Perspective: Three Factors for SMEs to Watch in 2024

2024 is already unfolding, and it’s crucial for us at Syarikat Ong, and indeed all SMEs in Malaysia, to roll up our sleeves and face the year’s unique SME challenges head-on. Here’s my take on three issues that aren’t making the mainstream discussions but should be at the forefront of our planning.

SME Challenges: Weather or Not

It’s not just our local elections that matter. Elections across the globe, particularly in influential nations like the United States, can send shockwaves through international markets, directly affecting Malaysian SMEs. U.S. foreign policy decisions, especially regarding China, can alter trade conditions, sway tariffs, and shift technology trade dynamics. While the US election garners global attention, it’s just one of many elections worldwide that SMEs should monitor. Each election has the power to signal changes that may affect global supply chains and, by extension, businesses both large and small. It’s a reminder that our business strategies must be nimble, ready to adapt to the ever-changing geopolitical landscape.

The World Votes, We Feel It

It’s not just our local elections that matter. Elections across the globe, particularly in influential nations like the United States, can send shockwaves through international markets, directly affecting Malaysian SMEs. U.S. foreign policy decisions, especially regarding China, can alter trade conditions, sway tariffs, and shift technology trade dynamics. While the US election garners global attention, it’s just one of many elections worldwide that SMEs should monitor. Each election has the power to signal changes that may affect global supply chains and, by extension, businesses both large and small. It’s a reminder that our business strategies must be nimble, ready to adapt to the ever-changing geopolitical landscape.

Subsidy Rationalisation & Tax Expansion

Here at home, this year is all about making every ringgit count. The government’s budgetary reforms bring a dual challenge of subsidy rationalisation and tax expansion. For SMEs, adapting to the nuances of subsidy rationalisation, aimed at providing targeted relief, especially for lower-income groups, is crucial. While subsidies are being targeted more precisely, tax policies are widening, both of which will have a profound impact on SMEs. These policy directions will significantly influence the cost structures and financial planning of SMEs. We must invest wisely to ensure our businesses continue to thrive.

At Syarikat Ong, we recognize 2024 as a year of adaptation. As one of the SMEs, we’re as committed as ever to steering through these times with the determination and flexibility that’s seen us through many a year. For all SMEs, let’s embrace adaptability as our mantra and transform potential obstacles into stepping stones for innovation and growth. Here’s to a year where we not only adapt but excel.