All ears: The second panel discussion at the SOBA Elevate event involved (from left) Ling, Siti Noraini, Sim and Choo.
THE Star Outstanding Business Awards (SOBA) launched its first Elevate event for participating small and medium enterprises (SMEs) at Menara Star, Petaling Jaya, last Wednesday.
It was a full day event with the first half involving two separate panel discussions, while the second half of the event was a masterclass session.
The first panel discussion, which kicked off after two short presentations by sponsors Credit Guarantee Corp (CGC) and RHB Bank Bhd, was titled “Navigating environment, social and governance (ESG) Investment and Compliance for SMEs”.
It was moderated by Malaysia External Trade Development Corp (Matrade) senior director in export promotion and market access division S. Jai Shankar, with speakers from KPMG sustainability services department director Tanushree Mainrai, Saxon Renewables founder and managing director Reik Ong and RHB Bank’s SME banking head of engagement Sim Ee Chiew.
Tanushree pointed out that ESG is not new and that companies have to comply with the laws and standards that are compatible with them.
She added that an SME based in Malaysia should prioritise its supply chain and its human rights.
The supply chain transparency for SMEs that are part of the longer supply chain for an organisation that applies to the European Union (EU) or global market is critical, as the EU Regulation on Deforestation-free Products (EUDR) is on the horizon despite delays.
She also mentioned that besides deforestation, the EUDR has also highlighted human rights as part of the compliance requirement.
Ong said that while some companies explore ESG on a voluntary basis, most learn when they lose customers or business opportunities due to non-compliance.
He said that the knowledge gap is a challenge for most SMEs and that top management should be the first to understand the pros and cons and the risks and the consequences of adopting ESG.
Ong also pointed out that many multinational companies (MNCs) seek to reduce their Scope 3 emissions by pressuring their suppliers, some of which are SMEs, to reduce their carbon emissions.
Scope 3 are emissions arising from activities that are out of the company’s control but are still indirectly affected by its value chain.
Ee Chiew shared that SMEs face two key challengers. The first is information and knowledge on ESG and the second is resources and financial capacity.
He also said that a survey RHB Bank has conducted showed that 75% of MNCs intend to change their suppliers in the foreseeable future, with many of them to replace 35% of their suppliers by next year.
“This presents both a challenge and an opportunity for SMEs to either get ready and get on board the ESG bandwagon quickly or be frozen out of the MNC supply chain.”
The second panel discussion explored the topic of “Exploring Business Expansion Through Partnerships and Collaborations”.
Moderated by Urban Ground Sdn Bhd managing director Datuk Vincent Choo, the panellists included Secret Recipe Cakes and Cafe Sdn Bhd managing director Patrick Sim, Nippon Sushi Malaysia Sdn Bhd founder and director Che Siti Noraini Nuawi, as well as TikTok Shop offline acquisition manager Cherise Ling.
Sim shared that Secret Recipe aims to bring excitement to the market and one of the ways it does so is through its product.
“We collaborate with strong brands that we feel relate very well with our customers, such as with Milo, with the Milo cheesecake.” It is a brand that people recognise and generates a lot of excitement, he said.
For Siti Noraini, whose background was in branding and marketing, collaborating with the right people to set up her food and beverage (F&B) business and learn the operations within the industry was crucial.
Ling explained that TikTok Shop partners with trade exhibitions in order to encourage the online presence of the exhibitions.
“Besides trade expo organisers, we also work with industry associations and telecommunication companies,” she added.
She said challenges she faced include convincing exhibition participants to get online to reach a wider audience and sorting out technical difficulties that participants face when airing their wares online during the exhibitions.
Besides the discussions, there was also a masterclass conducted by consultant, speaker, trainer and author Kevin Chan on “Mastering the art of business presentations.”
SOBA 2024 is organised by SMG with CGC, PKT Logistics Group Sdn Bhd and RHB Bank as main sponsors, with Matrade being the official trade promotion partner. It is audited by BDO while radio stations 988 and Suria are official media partners.
For more information, call SMG Events (017-231 1789) or go to www.soba.com.my.
