Knowledge bank: Star Media Group chief business officer Lydia Wang (front row, sixth from left) with judges for the second round of evaluation for this year’s SOBA participants.
Petaling Jaya: The second Star Outstanding Business Awards (SOBA) 2024 judging session concluded on Dec 9, with the judges determining the awards that rightfully suit the selected participants from the first round, which took place Nov 26 to 28.
The second round identified the finalists from Round One who would go forward as winners for the individual categories, except for Best in Customer Service, then the winners for Entrepreneur of the Year, as well as the Rising Star title.
During the session, StarBiz met with the eight chief judges to ask them what small and medium enterprises (SMEs) can expect in the upcoming year, the challenges and how they can face these challenges head on and succeed.
Malaysia Retail Chain Association (MRCA) vice-president Afendi Dahlan said that SMEs will face issues with the rising cost of doing business, global economic uncertainty, increased digital disruption and finding the right talent.
“In addition to the rising cost of raw materials and utilities, new government policies relating to the minimum wage and Employees Provident Fund contributions effective next year could become a financial burden for SMEs that do not see any business growth.”
He added that unresolved regional conflicts will also affect international trade and to some extent, some sectors like exports and manufacturing may be caught in the economic crossfire of protectionist policies between some countries.
National Technology Association of Malaysia deputy chairman Alex Liew said SMEs in Malaysia face a rapidly evolving landscape shaped by three interconnected challenges: digital transformation, sustainability and workforce shortages.
“Many SMEs are still struggling to adopt advanced technologies necessary for competitiveness in the digital economy, often hindered by limited resources and expertise.”
This sentiment was echoed by Branding Association of Malaysia vice-president Datuk Jennifer Ong who said, “Digital transformation is crucial, but many SMEs still struggle to adopt the latest technologies due to limited resources.”
She also indicated that regulators and consumers are pushing SMEs to embrace sustainable practices, which adds another layer of complexity that requires significant investment and operational changes.
In addition to the rising cost of doing business next year, Malaysia Entrepreneurs’ Development Association president Datuk Teh Tai Yong said that the announcement of the multi-tiered levy system for foreign workers also contributed to the costs for doing business.
“The inflation that we have seen now when we are buying things will also impact consumers’ spending power in the upcoming year.”
The judges also highlighted the shortage of skilled workers, which remains a perennial issue, which makes it difficult for SMEs to attract and retain the workforce they need to thrive.
To face these challenges, Affendi advised SMEs to take a holistic approach consisting of financial and non-financial strategies in order to grow.
“Prudent financial planning and management is essential to optimise cashflow and to weather unforeseen exigencies,” he added.
Due to the higher cost of hiring new talent, he pointed out that SMEs should also focus on increasing productivity in the existing workforce through training and multitasking.
“To diversify revenue streams, SMEs can forge collaborations to promote strategic partnerships and innovation, which can be cost effective in the long run.
Liew’s advice to SMEs is to consider these challenges as opportunities for growth and innovation.
“By leveraging government incentives for digitalisation and sustainability, SMEs can reduce costs and improve their competitiveness in the long term.
Teh added that SMEs need to upskill their workers as Malaysia moves towards becoming a high-income nation.
“We have to make sure our workers are more skilled, equipped and professional in what they are doing, in order to create better value.”
Ong urged SMEs to focus on agility and innovation, leveraging digital tools to streamline operations and access new markets.
“Government support and a proactive mindset towards adapting to changes in consumer behaviour and the business environment will be essential for navigating these challenges,” she said.
For Datin Winnie Loo, president of the Branding Association of Malaysia, being a judge for SOBA has been an honour as she was able to witness the platform’s journey over the past 15 years.
“Each year, I am inspired by the sheer talent, resilience, and innovation of our entrepreneurs. What I would love to see this year is a surge in creativity – new categories that celebrate emerging trends like green technology, sustainable solutions and digital transformation.
She urged the SMEs to continue championing innovation and sustainability, in order to shape a brighter future for all.
Associated Chinese Chambers of Commerce and Industry of Malaysia treasurer general Datuk Koong Lin Loong said he envisioned SOBA evolving into Malaysia’s most prestigious award by recognising the nation’s most elite businesses from a qualitative, rather than quantitative perspective.
“SOBA winners will be considered and classified by the market as the leading representatives in their respective fields and industries, with judges who consist of experts from the relevant fields and representatives from chambers of commerce.”
He said SOBA could position itself not only as an award presenter but as a gateway for its winners in the future.
These would be recognised as “green-lane” companies that are eligible for enhanced support and opportunities, particularly from financial institutions and government agencies.
MRCA vice-president Datuk Vincent Choo said that he would like to see SOBA continue recognising the success of entrepreneurs and businesses.
“I hope to see a wider, broader range of industries participating, especially those who are new company setups and SMEs, as this will benefit the growth of their business and the industries.”
He added that it is good to adapt to new trends by acknowledging areas like artificial intelligence, digital transformation, green energy and environmental, social and governance initiatives.
The final judging session is scheduled for Jan 7 next year.
