ASEAN SMEs embracing digitalisation to improve business sustainability

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    • ASEAN SMEs embracing digitalisation to improve business sustainabilityASEAN SMEs embracing digitalisation to improve business sustainability
    16 September 2020


    By UOB Business Banking


    The start of the new decade has seen significant shifts for many ASEAN businesses. With the global economy grappling with the pandemic, ASEAN’s small and medium-sized enterprises (SMEs) have been likewise impacted. How these SMEs respond and find ways to manage the disruption to their business is of significance – they are the backbone of the region’s growth, accounting for at least 97 per cent of businesses across ASEAN.

    In the ASEAN SME Transformation Study 2020 by UOB, Accenture and Dun & Bradstreet, almost nine in 10 SMEs surveyed (88 per cent) expect a decline in revenue this year. While ensuring sufficient cash flow is the immediate priority for almost half of the SMEs, 60 per cent of them are refocusing on digitalisation as a top priority to secure their long-term competitiveness.

     

    Top 5 preferred strategies to gain competitive advantage before the COVID-19 outbreak

     

    Top 5 preferred strategies to gain competitive advantage during COVID-19

     

    The study was conducted before and during COVID-19 and involved surveying a total of 1,000 SMEs across Indonesia, Malaysia, Singapore, Thailand and Vietnam, to find out how their businesses have been impacted by the pandemic. The report also explores other areas including the potential opportunities for ASEAN SMEs as they prepare for economic recovery.

     

    Opportunities for ASEAN post-COVID-19

    While ASEAN continues to weather the impact of COVID-19, the region’s strong fundamentals – including a young demographic, rising consumption and increased infrastructure spending – ensure that its long-term growth potential remains intact.

    The findings of the survey back this belief in the ASEAN growth story. Some 33 per cent of ASEAN SMEs say that they will expand into new markets once the pandemic ends. The top three most attractive markets are Singapore (64 per cent), Malaysia (51 per cent) and Thailand (50 per cent).

     

    Sectoral outlook for 2020 by country

    Indonesia

     

    Malaysia

     

    Singapore

     

    Thailand

     

    Vietnam

     

    Source for sectoral outlook: Dun & Bradstreet

     

    Download the report

     

     

    This article shall not be copied, or relied upon by any person for whatever purpose. This article is given on a general basis without obligation and is strictly for information only. The information contained in this article is based on certain assumptions, information and conditions available as at the date of the article and may be subject to change at any time without notice. You should consult your own professional advisers about the issues discussed in this article. Nothing in this article constitutes accounting, legal, regulatory, tax or other advice. This article is not intended as an offer, recommendation, solicitation, or advice to purchase or sell any investment product, securities or instruments. Although reasonable care has been taken to ensure the accuracy and objectivity of the information contained in this article, UOB and its employees make no representation or warranty, whether express or implied, as to its accuracy, completeness and objectivity and accept no responsibility or liability for any error, inaccuracy, omission or any consequence or any loss or damage howsoever suffered by any person arising from any reliance on the views expressed and the information in this article.

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