Can SMEs leverage teleworking to survive MCO?

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SMEs Can Leverage Teleworking to Survive MCO

Small and medium-sized enterprises (SMEs) can utilise teleworking and digitalisation to maintain operations during the Movement Control Order (MCO). Given that non-essential businesses are mandated to cease physical operations under the MCO, adopting digital technologies through teleworking presents the primary avenue for continued business activity, thereby mitigating the risk of permanent closure.
Benefits of Teleworking

Teleworking, also referred to as telecommuting, involves employees working from home and connecting with their office via the internet through phone or email. This practice has demonstrated significant advantages, with reports indicating a 22 per cent increase in employee productivity, a 20 per cent reduction in employee turnover, and a 60 per cent decrease in employee absenteeism. These benefits stem from factors such as increased focus away from office distractions and the flexibility offered by remote work arrangements.
Digitalisation as a Strategic Imperative

Digitalisation is a key component of Malaysia's economic strategy, as highlighted in Budget 2020. For SMEs, which are significant contributors to employment, accounting for 66.2 per cent in 2018, and to GDP with a 38.3 per cent contribution in the same year, embracing digital technologies is crucial. Experts anticipate that digital advancements will unlock substantial opportunities for enhanced productivity, job creation, and innovation across various sectors.
Support for SME Digitalisation

Recognising the importance of digital adoption, government initiatives and financial support are available to assist SMEs. The Ministry of Finance, through programmes like BSN's SME Digitalisation Initiative, provides grants to facilitate the adoption of digital solutions. This support aims to overcome the initial investment barriers that SMEs might face when implementing teleworking and digitalisation strategies, positioning them for future growth within Malaysia's evolving digital economy.

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Can SMEs leverage teleworking to survive MCO?

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