THE CPA AUSTRALIA
ASIA-PACIFIC
SMALL BUSINESS
SURVEY 2015
MALAYSIA REPORT
2 | THE CPA AUSTRALIA ASIA-PACIFIC SMALL BUSINESS SURVEY 2015 – MALAYSIA REPORT
LEGAL NOTICE
CPA Australia Ltd (‘CPA Australia’) is one of the world’s largest accounting bodies, representing more than 155,000 members of the financial,
accounting and business profession in 118 countries.
ISBN: 978-1-921742-73-6
For information about CPA Australia, visit our website cpaaustralia.com.au
First published 2016
CPA Australia Ltd
ACN 008 392 452
Level 20, 28 Freshwater Place
Southbank Vic 3006
Australia
Copyright © CPA Australia Ltd (ABN 64 008 392 452) (‘CPA Australia’), 2016. All rights reserved. CPA Australia owns all copyright in these materials or uses it
under licence or applicable law. For permission to reproduce any material, a request in writing is to be made to the Legal Business Unit, CPA Australia Ltd, Level
20, 28 Freshwater Place, Southbank, Victoria 3006 Australia.
DISCLAIMER
CPA Australia has used reasonable care and skill in compiling the content of these materials. However, CPA Australia makes no warranty that the materials are
accurate and up to date. These materials do not constitute the provision of professional advice whether legal or otherwise. Users should seek their own
independent advice prior to relying on or entering into any commitment based on the materials. The materials are purely published for reference purposes alone.
CPA Australia, their employees, agents and consultants exclude completely all liability to any person for loss or damage of any kind including but not limited to
legal costs, indirect, special or consequential loss or damage (however caused, including by negligence) arising from or relating in any way to the materials and/or
any use of the materials. Where any law prohibits the exclusion of such liability, then to the maximum extent permitted by law, CPA Australia’s liability for breach of
the warranty will, at CPA Australia’s option, be limited to the supply of the materials again, or the payment of the cost of having them supplied again.
3 | THE CPA AUSTRALIA ASIA-PACIFIC SMALL BUSINESS SURVEY 2015 – MALAYSIA REPORT
OVERVIEW
CPA Australia Asia-Pacific Small Business Survey 2015 is the sixth in a series of annual reports measuring small
business confidence, the drivers of confidence, technology uptake and access to finance by small businesses. The
data is compared across the eight economies included in this survey and over time.
In total, 2932 participants completed the survey, including 510 from Australia, 610 from Mainland China, 265 from
Hong Kong, 306 from Indonesia, 310 from Malaysia, 311 from New Zealand, 310 from Singapore and 310 from
Vietnam.
The online survey was conducted with a random sample of small business owners/managers between 24
September and 14 October 2015. The sample was obtained through panel providers. To qualify for the survey,
participants were required to be an owner, a senior manager (defined as being a director, a principal, a CEO, a
CFO, a senior manager or a managing director) or a qualified accountant of a business with fewer than 20
employees.
4 | THE CPA AUSTRALIA ASIA-PACIFIC SMALL BUSINESS SURVEY 2015 – MALAYSIA REPORT
SUMMARY OF MALAYSIA RESULTS
Malaysia’s strong focus on innovation and e-commerce should boost competitiveness
and business growth.
CPA Australia’s Asia-Pacific Small Business Survey reveals that there is much to be positive about in Malaysia in
2016 and beyond owing to a strong focus by many Malaysian small businesses on innovation, e-commerce, social
media and exporting.
The focus on these key drivers is flowing through to business growth, with the number of Malaysian small
businesses expecting to grow in the next 12 months at 69.6 per cent, a rise of 10.4 percentage points from the last
survey.
Malaysia’s small businesses do face challenges, however, including a fall in economic confidence (46.8 per cent
expect Malaysia’s economy to grow in the next 12 months, a 20.7 percentage point decline from the last survey).
Yet nearly seven in ten small businesses expect to grow in the next 12 months – a demonstration of their resilience
in less favourable economic conditions.
Despite this fall in economic confidence, the survey results clearly show that there are very good reasons to be
confident in Malaysia’s future, with many small businesses expecting to undertake innovation through the definite
introduction in the next 12 months of a new product, service or process that is unique to Malaysia or the world (29.0
per cent of Malaysian small businesses compared with the survey average of 22.0 per cent).
In addition to the strong focus on innovation, Malaysian small businesses are well placed to grow and compete in
the coming years as:
 a large percentage expect to grow their e-commerce presence (35.2 per cent of Malaysian small businesses
expect to grow their e-commerce presence to a large extent in the next 12 months compared with the survey
average of 32.2 per cent)
 many expect to grow revenue from overseas markets (18.7 per cent of Malaysian small businesses expect their
revenue from overseas markets to grow strongly in the next 12 months, just below the survey average of 19.1
per cent).
The positive business outlook and focus on some of the key drivers of future growth should contribute to the
creation of a large number of new jobs in the sector, with 46.8 per cent of Malaysia’s small businesses forecasting
they will increase employee numbers in the next 12 months.
The strong focus by many Malaysian small businesses on innovation and e-commerce means they should find
themselves in a good position to outcompete their less nimble and tech-savvy competitors and remain competitive
against rivals from fast-growing neighbouring economies, who are taking big steps to improve their
competitiveness.
The Malaysian government has done much to encourage an innovation and entrepreneurial mindset through policy
initiatives such as equity crowd funding. With the survey results demonstrating that small businesses that are
innovating, growing their e-commerce presence and exporting are significantly more likely to be growing and
creating jobs, this is clearly the right policy approach and should help offset any temporary fall in economic
confidence.
5 | THE CPA AUSTRALIA ASIA-PACIFIC SMALL BUSINESS SURVEY 2015 – MALAYSIA REPORT
Other results from the survey
ASEAN Economic Community
 A slight majority of Malaysian small businesses expect that the creation of the ASEAN Economic Community
will have a positive impact on their business.
 Only 5.5 per cent of Malaysian businesses thought the AEC would have a negative impact on their business.
Demographics
 Malaysian small businesses and their business owners are younger than the survey average (74.2 per cent are
under 40 compared with the survey average of 53.2 per cent).
 There is a strong correlation between younger business owners and those businesses that expect to grow, sell
online, use social media for business purposes, and innovate through the introduction of new products,
processes or services.
Improved business management
 Malaysian small businesses were more likely to state that improved business management had a major positive
impact on their business in the past 12 months than the survey average (31.3 per cent compared with the
survey average of 25.4 per cent).
Access to finance
 For those Malaysian small businesses that sought finance in the past 12 months, access to finance was more
likely to be difficult than easy (only 31.9 per cent found access to finance easy or very easy compared with the
survey average of 47.6 per cent).
 These relatively difficult financing conditions seem to have had an impact on demand for external finance, with
the percentage demanding external finance falling from 73.6 per cent in the last survey to 57.7 per cent in the
current survey
 Growth remains the most important reason for accessing finance and banks are the main source of that finance.
6 | THE CPA AUSTRALIA ASIA-PACIFIC SMALL BUSINESS SURVEY 2015 – MALAYSIA REPORT
MAJOR FINDINGS FOR MALAYSIA
Malaysian small businesses, with their strong focus on innovation, are well
placed to grow, create jobs and export in 2016 and beyond.
Small businesses with an e-commerce presence are more likely to be
growing and creating jobs. More Malaysian small businesses could
therefore benefit from greater investment in e-commerce.
With small businesses that expect to grow revenue from exporting
being more likely to be growing and creating jobs, it is important
for more Malaysian small businesses to consider exporting as part
of their business strategy.
With the survey results showing a strong connection between
social media use and business growth, the very strong uptake of
social media by Malaysia’s small businesses is a competitive
advantage.
Reflecting strong business conditions, nearly half of Malaysia’s
small businesses plan to increase their headcount in 2016.
Malaysian small business confidence in the growth prospects for their
own business is up in 2016 despite lower confidence in the local
economy.
The ASEAN Economic Community expected to have a positive influence on small
business across the ASEAN region.
7 | THE CPA AUSTRALIA ASIA-PACIFIC SMALL BUSINESS SURVEY 2015 – MALAYSIA REPORT
KEY SURVEY FINDINGS FOR MALAYSIA
INNOVATION
Malaysian small businesses, with their strong focus on innovation1, are well placed to
grow, create jobs and export in 2016 and beyond.
Small businesses that will in the next 12 months definitely introduce a new product, service or
process that is new to their market or the world2
Indonesia
45.8%
China
31.6%
Malaysia
29.0%
Vietnam
26.1%
Hong Kong
17.7%
Singapore
New Zealand
Australia
1
15.2%
6.8%
5.1%
Innovation, for the purpose of the survey, is taken to be the introduction of a new product, service or process that is unique to a market or the
world.
2
All data for China excludes Hong Kong, which is shown separately.
8 | THE CPA AUSTRALIA ASIA-PACIFIC SMALL BUSINESS SURVEY 2015 – MALAYSIA REPORT
The relationship between innovation and jobs creation, business growth and exporting
Percentage that expect to
definitely introduce a
product, service or
process that is new to
their market or the world
EMPLOYEE NUMBERS
Expecting to increase employee numbers in the next 12 months
NOT expecting to increase employee numbers in the next 12 months
BUSINESS GROWTH
Expecting to grow their business in the next 12 months
NOT expecting to grow their business in the next 12 months
EXPORTING
Expecting revenue from overseas sales to grow strongly in the next 12 months
NOT expecting to grow their revenue from overseas sales in the next 12 months
9 | THE CPA AUSTRALIA ASIA-PACIFIC SMALL BUSINESS SURVEY 2015 – MALAYSIA REPORT
With Malaysia’s small business sector being a leader on innovation in the region, Malaysian small businesses are
well placed to grow and outcompete their rivals from Malaysia and elsewhere. To maintain this advantage, more
Malaysian small businesses should be looking to innovate.
With the survey results showing that innovative businesses are significantly more likely to be growing, exporting
and creating jobs, it is easy to see why Malaysia’s government, through agencies such as the National Innovation
Agency Malaysia, is focused on stimulating and developing an innovation ecosystem in Malaysia. As a recent
OECD paper on innovation stated, ‘in the long run, it is difficult to imagine growth without innovation’.
The OECD estimates that innovation can contribute up to 50 per cent of economic growth depending on the
3
country, the level of economic development and the phase of the economic cycle. Such an estimate highlights
why Malaysia’s government is absolutely right to have innovation as a core policy focus.
Businesses are also more likely to definitely expect to undertake innovation through the introduction in the next 12
months of a new product, service or process that is unique to their market or the world if they:
 have a business owner/manager aged under 40
 have between 5 and 19 staff
 are in the banking, finance and insurance sector, or the manufacturing sector.
KEY FINDING
Malaysian small businesses, with their strong focus on innovation, are well placed to grow, create jobs and
export in 2016 and beyond. We suggest that those Malaysian small businesses that are not innovating should
take advantage of the support the government offers to promote innovation.
3
OECD Innovation Strategy: An Agenda for Policy Action, OECD Publishing, Paris, 2015, p. 4
10 | THE CPA AUSTRALIA ASIA-PACIFIC SMALL BUSINESS SURVEY 2015 – MALAYSIA REPORT
E-COMMERCE
Small businesses with an e-commerce presence are more likely to be growing and
creating jobs. More Malaysian small businesses could therefore benefit from greater
investment in e-commerce.
Small businesses that generated revenue from online sales – by market 4
Indonesia
93.8%
China
90.1%
Vietnam
85.1%
Hong Kong
80.4%
Malaysia
73.2%
Singapore
63.6%
New Zealand
37.0%
Australia
33.0%
Small business that intend to grow their e-commerce presence to a large extent in the next 12
months – by market5
Indonesia
86.3%
Hong Kong
42.6%
China
36.4%
Malaysia
35.2%
Vietnam
33.5%
Singapore
New Zealand
Australia
4
5
19.4%
9.6%
8.2%
All data for China excludes Hong Kong, which is shown separately.
All data for China excludes Hong Kong, which is shown separately.
11 | THE CPA AUSTRALIA ASIA-PACIFIC SMALL BUSINESS SURVEY 2015 – MALAYSIA REPORT
The relationship between e-commerce and business growth, jobs creation and exporting
Percentage that expect to
grow their e-commerce
presence to a large
extent
BUSINESS GROWTH
Expecting to grow their business in the next 12 months
NOT expecting to grow their business in the next 12 months
EMPLOYEE NUMBERS
Expecting to increase employee numbers in the next 12 months
NOT expecting to increase employee numbers in the next 12 months
EXPORTING
Expecting revenue from overseas sales to grow strongly over the next 12 months
NOT expecting to sell into overseas markets in the next 12 months
12 | THE CPA AUSTRALIA ASIA-PACIFIC SMALL BUSINESS SURVEY 2015 – MALAYSIA REPORT
Small businesses from Malaysia are leading their peers and competitors from Singapore, Australia and New
Zealand in generating revenue from online sales. This advantage is only likely to grow as small businesses from
Malaysia are more likely to expect to grow their e-commerce presence in the next 12 months than businesses from
those markets.
However, with businesses from other markets in the region outpacing Malaysia on e-commerce usage, there is
scope for more Malaysian small businesses to consider establishing and growing their e-commerce presence.
With the survey results showing that small businesses that are selling online and seeking to grow their e-commerce
presence are significantly more likely to be growing and creating jobs, it is easy to see why Malaysia’s government
has a strong focus on encouraging business to make greater use of e-commerce and technology more broadly.
While online sales are not relevant for all businesses, when you combine the results that show a strong connection
between e-commerce and growth, and growing digital penetration and literacy of customers, the findings suggest it
would be wise for all Malaysian businesses to investigate establishing and growing their e-commerce presence.
Small businesses are also more likely to earn income from online sales where:




the business has between 5 and 19 staff
the business has been established for less than 21 years
the respondent is aged under 40
the business is in the manufacturing sector.
KEY FINDING
With the results showing businesses making online sales are significantly more likely to be growing and creating
jobs, we suggest that more Malaysian small businesses should consider making a larger investment in ecommerce.
13 | THE CPA AUSTRALIA ASIA-PACIFIC SMALL BUSINESS SURVEY 2015 – MALAYSIA REPORT
SMALL BUSINESS AND EXPORTING
With small businesses that expect to grow revenue from exporting being more likely to
be growing and creating jobs, it is important for more Malaysian small businesses to
consider exporting as part of their business strategy.
Small businesses expecting revenue from overseas sales will grow in the next 12 months – by
market6
Indonesia
China
57.8%
15.7%
Vietnam
40.6%
22.3%
Singapore
Malaysia
46.1%
19.7%
Hong Kong
17.7%
7.1%
Australia
6.1%
32.8%
15.7%
15.7%
New Zealand
24.2%
15.7%
16.4%
13.3%
Grow strongly
6
All data for China excludes Hong Kong, which is shown separately.
Grow a little
14 | THE CPA AUSTRALIA ASIA-PACIFIC SMALL BUSINESS SURVEY 2015 – MALAYSIA REPORT
The relationship between exporting, and jobs creation and business growth
Percentage that expect
their revenue from
exporting to grow
strongly
EMPLOYEE NUMBERS
Expecting to increase employee numbers in the next 12 months
NOT expecting to increase employee numbers in the next 12 months
BUSINESS GROWTH
Expecting to grow their business in the next 12 months
NOT expecting to grow their business in the next 12 months
While Malaysian small businesses outperform those from Australia and New Zealand when it comes to forecasting
an expected increase in revenue from exporting in the next 12 months, they are behind other developing ASEAN
nations. For Malaysia, this may in part be due to weak economies in many key markets.
This means that the many of Malaysia’s small businesses are focused on the domestic market. This domestic
focus means that those businesses are not only limiting their growth potential but increasing their risk exposure
should Malaysia’s economy slow.
While a stronger exporting focus comes with risks, including foreign exchange risks and the potential for downturns
in key markets, the advantages of exporting over focusing on the domestic market are likely to be significant. For
example, exporting reduces the risks associated with a focus on a single market and potentially increases a
business’s exposure to new ideas from overseas markets, which in turn can assist them with innovation in their
home market.
15 | THE CPA AUSTRALIA ASIA-PACIFIC SMALL BUSINESS SURVEY 2015 – MALAYSIA REPORT
With the survey results showing a strong link between increasing revenue from exporting and business growth and
jobs creation, it is easy to see why governments across the region are taking action to support and encourage
international trade with initiatives such as the ASEAN Economic Community and the Trans-Pacific Partnership.
Small businesses are also more likely to expect strong growth in their earnings from overseas in the next 12
markets if:




the business is in the manufacturing sector
the businesses has between 5 and 19 employees
the respondent is aged under 50
the business has been established for less than 21 years.
KEY FINDING
With the results showing that small businesses that expect revenue from exports to grow in the next 12 months
are significantly more likely to expect their business to grow and to increase employee numbers, it is important
for more Malaysian small businesses to consider exporting as part of their business strategy.
16 | THE CPA AUSTRALIA ASIA-PACIFIC SMALL BUSINESS SURVEY 2015 – MALAYSIA REPORT
SOCIAL MEDIA
With the survey results showing a strong connection between social media use and
business growth, the very strong uptake of social media by Malaysia’s small businesses
is a competitive advantage.
Small businesses that used social media in their business – by market7
China
97.2%
Vietnam
96.5%
Indonesia
96.0%
Hong Kong
93.2%
Malaysia
88.2%
Singapore
New Zealand
Australia
79.6%
56.5%
50.2%
With the survey results showing a connection between social media use for business purposes and business
growth, the very strong uptake of social media amongst Malaysia’s small businesses gives them a competitive
advantage over businesses from Singapore, New Zealand and Australia where the number of small businesses
using social media is lower.
With customers being increasingly likely to seek to communicate and transact with businesses via social media, a
robust social media presence should enhance a small business’s ability to attract, retain and transact with
customers. It may also enhance their brand reputation and assist them to grow their business.
Those that use social media use it for a variety of purposes including communicating with existing customers,
promoting their business to potential customers, and selling their products or services.
Small businesses are significantly less likely to be using social media for business purposes where:
 the respondent is aged 50 or over
 the business has been established for over 20 years
 the business has four or fewer staff.
7
All data for China excludes Hong Kong, which is shown separately.
17 | THE CPA AUSTRALIA ASIA-PACIFIC SMALL BUSINESS SURVEY 2015 – MALAYSIA REPORT
KEY FINDING
With small businesses using social media being more likely to grow, the large-scale adoption of social media by
Malaysia’s small businesses is a competitive advantage that should help generate future growth.
18 | THE CPA AUSTRALIA ASIA-PACIFIC SMALL BUSINESS SURVEY 2015 – MALAYSIA REPORT
JOBS AND SMALL BUSINESSES
Reflecting strong business conditions, nearly half of Malaysia’s small businesses plan to
increase their headcount in 2016.
Small businesses that plan to increase employee numbers in the next 12 months – by market8
Indonesia
71.2%
Vietnam
66.1%
China
55.2%
Malaysia
46.8%
Hong Kong
32.8%
Singapore
New Zealand
Australia
8
27.7%
19.9%
16.7%
All data for China excludes Hong Kong, which is shown separately.
19 | THE CPA AUSTRALIA ASIA-PACIFIC SMALL BUSINESS SURVEY 2015 – MALAYSIA REPORT
Relationship between jobs creation and business growth, innovation, exporting and e-commerce
Percentage that expect to
increase employee
numbers in the next 12
months
BUSINESS GROWTH
Expecting to grow in the coming 12 months
NOT expecting to grow in the coming 12 months
INNOVATION
Definitely expecting to introduce a new product, service or process unique to their
country or the world
NOT expecting to introduce a new product, service or process unique to their country
or the world
EXPORTING
Expect to grow export revenue strongly
NOT expecting to sell into overseas markets
20 | THE CPA AUSTRALIA ASIA-PACIFIC SMALL BUSINESS SURVEY 2015 – MALAYSIA REPORT
E-COMMERCE
Expect to grow their e-commerce presence to a large extent
NOT expecting to grow their e-commerce presence
The jump in the number of Malaysian small businesses that are expecting their business to grow in 2016 from 2015
is flowing through to jobs, with 46.8 per cent of Malaysian small businesses planning to increase employee
numbers in the next 12 months.
Other factors contributing to this healthy jobs projection include the strong focus on innovation, e-commerce and
social media by many of Malaysia’s small businesses.
Over the next 12 months, businesses that expect to increase employee numbers are also significantly more likely
to:
 intend to significantly increase their e-commerce presence
 strongly grow their revenue from overseas sales
 innovate through definitely introducing a new product, service or process.
Small businesses are also more likely to expect to increase employee numbers over the next 12 months if:
 the business is in the manufacturing, accommodation or food services industries
 the business has between 5 and 19 staff
 the respondent is aged under 40.
KEY FINDING
A stronger focus on exporting could lead to more Malaysian small businesses increasing their headcount.
21 | THE CPA AUSTRALIA ASIA-PACIFIC SMALL BUSINESS SURVEY 2015 – MALAYSIA REPORT
BUSINESS AND ECONOMIC CONDITIONS
Malaysian small business confidence in the growth prospects for their own business is
up in 2016 despite lower confidence in the local economy.
Small businesses that grew over the past 12 months – by market9
Indonesia
57%
Vietnam
34%
63%
China
26%
70%
Malaysia
8%
55%
Hong Kong
14%
51%
Singapore
12%
49%
New Zealand
9%
41%
Australia
15%
32%
13%
Grown A Little
Grown Strongly
Small businesses that expect their business to grow in the coming 12 months, 2009 to 2015 – by
market
100%
90%
Vietnam
80%
Mainland China
Singapore
70%
New Zealand
Malaysia
60%
Indonesia
Hong Kong
50%
Australia
40%
30%
2009
9
2010
2011
2012
2013
All data for China excludes Hong Kong, which is shown separately.
2014
2015
22 | THE CPA AUSTRALIA ASIA-PACIFIC SMALL BUSINESS SURVEY 2015 – MALAYSIA REPORT
Small businesses that expect their local economy to grow over the next 12 months, 2011 to 2015
– by market
100%
90%
80%
Australia
Hong Kong
70%
Indonesia
Malaysia
60%
New Zealand
50%
Singapore
Mainland China
40%
Vietnam
30%
20%
2011
2012
2013
2014
2015
Almost seven in ten Malaysian small businesses expect their business to grow in 2016, a 10.4 percentage point
increase from their forecast for 2015. This positivity is happening at the same time that confidence in Malaysia’s
economy is falling, with 46.8 per cent of small businesses expecting Malaysia’s economy to grow in the next 12
months, a 20.7 percentage point decline from the last survey.
The fall in economic confidence is understandable given the range of external pressures Malaysia’s economy is
facing including slowing growth in China (although it remains very robust), uncertainty over US interest rates, and
weaker than expected recoveries in the economies of the US, Japan and the euro area.
Despite this fall in economic confidence, the survey results clearly show that there are very good reasons to be
confident in Malaysia’s future, with many small businesses expecting to undertake innovation, grow their ecommerce presence and use social media.
As the survey results show, small businesses that expect to innovate, grow their e-commerce presence to a
large extent and strongly grow revenue from exports are significantly more likely to expect their business to
grow in the next 12 months. In addition, small businesses are more likely to expect to grow if:
 they have between 5 and 19 employees
 the respondent is aged under 50
 the business reported growing in the past 12 months.
Further, small businesses are more likely to expect their local economy to grow if:
 they have between 5 and 19 employees
 they are in the manufacturing, property or construction sector
 the respondent is aged under 40.
23 | THE CPA AUSTRALIA ASIA-PACIFIC SMALL BUSINESS SURVEY 2015 – MALAYSIA REPORT
KEY FINDING
A stronger focus on exporting should lead to more Malaysian small businesses experiencing growth. The fall in
confidence in the growth prospect for Malaysia’s economy appears to be a temporary aberration.
24 | THE CPA AUSTRALIA ASIA-PACIFIC SMALL BUSINESS SURVEY 2015 – MALAYSIA REPORT
ACCESSING FINANCE
Access to finance for Malaysia’s small businesses remains more likely to be difficult
than easy.
Access to finance – the percentage that experienced easy to very easy financing conditions in
the previous 12 months10
2015
2014
Indonesia
60.6%
Indonesia
56.3%
China
59.3%
New Zealand
53.7%
Australia
54.3%
Australia
48.1%
New Zealand
50.0%
China
33.4%
Hong Kong
43.5%
Malaysia
32.3%
Singapore
34.1%
Vietnam
32.0%
Malaysia
31.8%
Singapore
30.9%
Vietnam
29.7%
Hong Kong
29.9%
Access to finance remained more likely to be difficult than easy for Malaysia’s small businesses that sought
external finance in the past 12 months. Malaysian small businesses expect such difficult financing to continue in
2016.
These relatively difficult financing conditions appear to have had some impact on the demand for finance by
Malaysian small businesses, with 57.7 per cent of Malaysian small businesses requiring funds from an external
source in the past 12 months, down from 73.6 per cent in the 2014 survey. However, Malaysia’s small businesses
remain much more likely to seek external finance than small businesses from Australian and New Zealand, despite
small businesses in those markets continuing to experience significantly easier financing conditions.
Banks are the most popular source of finance for Malaysia’s small businesses. The next most popular sources
were venture capital/angel financing, and family and friends.
Malaysia’s small businesses were most likely to have sought external finance to assist with business growth, and
the number that sought external finance for that reason was up strongly from 2014 (35.8 per cent sought external
finance for growth in 2014 compared with 51.4 per cent in 2015).
10
All data for China excludes Hong Kong, which is shown separately.
25 | THE CPA AUSTRALIA ASIA-PACIFIC SMALL BUSINESS SURVEY 2015 – MALAYSIA REPORT
KEY FINDING
Accessing finance remains relatively difficult for many of Malaysia’s small businesses and this may be impacting
the demand for finance by Malaysia’s small businesses.
26 | THE CPA AUSTRALIA ASIA-PACIFIC SMALL BUSINESS SURVEY 2015 – MALAYSIA REPORT
SMALL BUSINESS AND THE ASEAN ECONOMIC
COMMUNITY
The ASEAN Economic Community expected to have a positive influence on small
business across the ASEAN region.
Expected impact of the creation of the ASEAN Economic Community on small businesses in
Indonesia, Malaysia, Singapore and Vietnam
13.4%
Very positive
50.0%
Positive
Small businesses in Indonesia, Malaysia, Singapore and Vietnam are most likely to expect the establishment of
the ASEAN Economic Community (AEC) to have a positive impact on their business. Small businesses in
Indonesia and Vietnam are especially positive about the AEC, while Singaporean small businesses were the most
likely to believe it will have no impact or that it is too early to tell.
Larger small businesses, manufacturing businesses and businesses that were established between five and ten
years ago are the most likely to see the formation of the AEC as having a positive impact on their business.
Businesses that are expecting strong growth in export revenue over the coming 12 months are also significantly
more likely to state that the AEC will have a very positive impact on their business.
Very few businesses think that the AEC will have a negative impact on their business, while some are still
undecided.
KEY FINDING
The ASEAN Economic Community is a positive initiative for businesses across the ASEAN region and should
improve business and economic performance for member nations.
27 | THE CPA AUSTRALIA ASIA-PACIFIC SMALL BUSINESS SURVEY 2015 – MALAYSIA REPORT
APPENDICES
MALAYSIA DATA SNAPSHOT
Business and economic growth
Malaysian small businesses that expect their
business to grow against small business growth
expectations for Malaysia's economy
Small businesses that expect their business to
grow - Malaysia against survey average
90%
90%
70%
70%
50%
50%
30%
30%
2011
2012
2013
Survey average
2014
2011
2015
Malaysia
2012
2013
Expect local economy to grow
2014
2015
Expect their business to grow
2015
Rank
2015
2014
Rank
2014
2015 survey
average
Businesses that grew in the last 12 months
69.0%
4/8
57.6%
4/8
68.2%
Businesses that expect to grow in the next 12
months
69.6%
4/8
59.2%
4/8
70.7%
Businesses that expect the local economy to
grow in the next 12 months
46.8%
7/8
67.5%
4/8
61.1%
28 | THE CPA AUSTRALIA ASIA-PACIFIC SMALL BUSINESS SURVEY 2015 – MALAYSIA REPORT
Business activity over the past 12 months
2015
Rank
2015
2014
Rank
2014
2015 survey
average
Increased employee numbers
31.6%
5/8
40.5%
3/8
33.1%
Improved business management had a major
positive impact on their business
31.3%
4/8
N/A
N/A
25.4%
Increasing costs had a major negative impact on
their business
48.7%
2/8
N/A
N/A
39.0%
Required funds from an external source
57.7%
5/8
73.6%
4/8
59.9%
Found it easy or very easy to access external
finance
31.8%
7/8
32.3%
6/8
47.6%
Sought external funds for business growth
51.4%
5/8
64.2%
3/8
56.3%
2015
Rank
2015
2014
Rank
2014
2015 survey
average
Expect to increase employee numbers
46.8%
4/8
52.4%
4/8
41.8%
Definitely expect to introduce a new product,
service or process unique to their country or the
world
29.0%
3/8
N/A
N/A
22.0%
Expect to grow their e-commerce presence to a
large extent
35.2%
4/8
N/A
N/A
32.2%
Expect revenue from overseas markets to grow
strongly
18.7%
4/8
N/A
N/A
19.1%
Will significantly increase spending on marketing
and promotion
23.9%
5/8
N/A
N/A
22.8%
Expect to grow their investment in assets
strongly
24.2%
3/8
N/A
N/A
23.1%
Definitely will seek external funds
29.7%
5/8
32.5%
3/8
29.2%
Expect easy to very easy access to finance
27.6%
8/8
29.3%
6/8
43.3%
Expect to seek external finance to fund growth
53.8%
5/8
61.7%
4/8
59.7%
Planned business activity over the next 12 months
29 | THE CPA AUSTRALIA ASIA-PACIFIC SMALL BUSINESS SURVEY 2015 – MALAYSIA REPORT
Social media and e-commerce
2015
Rank
2015
2014
Rank
2014
2015 survey
average
Earned revenue from online sales
73.2%
5/8
84.9%
4/8
68.9%
Used social media for business purposes
88.2%
5/8
93.2%
4/8
81.4%
2015
Rank
2014
2015 survey
average
51.0%
3/4
63.4%
ASEAN Economic Community
Creation of the ASEAN Economic Community will have a positive
impact on their business
Introduction of the GST
2015
GST had a major positive impact on their business
12.3%
GST had a major negative impact on their business
53.2%
Demographics
2015
Rank
2015
2014
Rank
2014
2015 survey
average
Business is 10 years old or younger
73.9%
3/8
75.9%
3/8
65.6%
Respondent is aged 39 or younger
74.2%
3/8
77.5%
1/8
53.3%
30 | THE CPA AUSTRALIA ASIA-PACIFIC SMALL BUSINESS SURVEY 2015 – MALAYSIA REPORT
ABOUT THE SURVEY
The CPA Australia Asia-Pacific Small Business Survey 2015 is part of a longitudinal annual study of small business
conducted by CPA Australia since 2009. This report presents a cross-market comparison between the eight
markets surveyed and, where applicable, a comparison of results from 2009 onwards. The survey was conducted
between 24 September and 14 October 2015.
The mainland of China and Vietnam were included in the survey for the first time in 2014. Indonesia and New
Zealand were included in 2011.
The survey in the mainland of China was conducted in Beijing, Chongqing, Guangzhou and Shanghai. All data for
China excludes Hong Kong, which is shown separately.
Interview method
In each market, the online survey was conducted amongst a random sample of small business owners/managers.
The sample was obtained through online panel provider Research Now and their Asian panel partner iPanelonline.
To qualify for the survey, participants were required to be an owner, a senior manager (defined as being a director,
a principal, a CEO, a CFO, a senior manager or a managing director) or a qualified accountant of a business with
fewer than 20 employees.
Sample
In total, 2932 participants completed the survey, including 510 from Australia, 610 from the mainland of China, 265
from Hong Kong, 306 from Indonesia, 310 from Malaysia, 311 from New Zealand, 310 from Singapore and 310
from Vietnam.
Of the 610 participants from the mainland of China, 155 were from Beijing, 152 were from Chongqing, 147 were
from Guangzhou and 156 were from Shanghai.
Questioning
Questions on small business confidence, employment, social media, costs and access to finance were drawn from
previous surveys. Some slight modifications to question wording were made to a number of those repeated
questions. Questions on innovation, major influences on the business environment, e-commerce, spending on
marketing and assets and exporting are new in this survey.
Questionnaires in Australia, Singapore and New Zealand were administered in English. The Hong Kong
questionnaire was administered in traditional Chinese, the questionnaire for Malaysia was administered in both
English and Bahasa Malaysia, Indonesia’s questionnaire was administered in Bahasa Indonesia, China’s
questionnaire was administered in simplified Chinese, and Vietnam’s questionnaire was administered in
Vietnamese.
Rounding
All percentage results shown in this report have been rounded.
29
cpaaustralia.com.au