DATUK SERI (DR.) ENG WEI CHUN – HOW TO EMBRACE THE SPRING OF SMES?
The outbreak of the COVID-19 pandemic in early 2020 led to a decline in consumer demand and severely impacted the sales of businesses, particularly small and medium-sized enterprises (SMEs).
Although the global economy has gradually recovered from the pandemic’s impact, ongoing challenges such as the Russia-Ukraine war, food and energy crises, U.S. interest rate hikes, the depreciation of the Malaysian ringgit, and inflation continue to exert pressure on domestic business activities. SMEs are particularly vulnerable, as they bear the brunt of these challenges.
Despite various government assistance plans for SMEs outlined in the 2024 Budget, including corporate tax rebates, loans, and financing guarantees, these measures provide only basic support. SMEs must continually enhance their capabilities to avoid being marginalized, eliminated, or overtaken by larger companies.
If local SMEs fail to develop and demonstrate greater competitive advantages, it will be inevitable for them to be absorbed by foreign enterprises.
Large enterprises may have more manpower and financial resources to invest in product development and marketing, but SMEs can still gain a competitive edge by focusing on branding and differentiation.
In a fiercely competitive market, establishing a strong brand can help SMEs differentiate themselves from their competitors and capture consumers trust. A unique brand positioning and image can enable SMEs to stand out in the market and enhance their competitiveness
Through effective branding, SMEs can communicate their product stories more compellingly, gaining consumer trust and loyalty. Consumers tend to prefer products or services with established brand reputations, associating them with quality and credibility. Therefore, brand building can help SMEs establish a stable customer base.
From my perspective, the primary challenge many SMEs face today lies in the “soul” of their workforce. While SMEs actively seek talented individuals, they must also invest significant effort in fostering civic awareness and encouraging self-improvement among employees. In doing so, employees will be better equipped to produce high- quality products for the company.
Looking at European nations, we can observe that their civilizations are well- developed, and most of their citizens demonstrate a mature mindset. In contrast, people in many Western countries are less likely to fall prey to fraudulent schemes. This reflects their higher levels of societal maturity and critical thinking, which are vital in the business world.
Undoubtedly, enhancing the maturity of both management and employees is fundamental to brand building. While everyone aspires to create a brand, how many Asian companies can genuinely establish an international brand? The biggest obstacle lies in the lack of corporate social responsibility, ethical management, and a culture of civilization.
How many people within the Chinese community truly understand the essence of “Dao”? Dao, which represents truth, must be applied comprehensively in business to create a powerful brand effect.
In the current global economic downturn, driven by the Russia-Ukraine war, the Israel- Hamas conflict, political instability, and the lingering effect of the COVID-19 pandemic, inflation remains a significant concern. How can we restore the economy to pre-pandemic levels? This is a critical question.
In my opinion, the first step is to understand and implement “Dao”—taking responsibility for society, maintaining high moral and cultural standards, and adhering to personal principles for self-improvement. When everyone in society embraces self- improvement, creating a strong brand image will be effortless.
Brand building is not a solo effort but a team effort. However, Asian enterprises often favor individual heroism, which can hinder their ability to build successful brands. In contrast, Western societies prioritize team spirit, making it easier for them to create strong brands.
As we are in a developing country, creating an international-level brand is not easy. The best approach is to maintain a fighting spirit, which will help us reduce costs. This is a necessary and unavoidable step.
In summary, branding is a critical strategy for SMEs to differentiate themselves from competitors. Taking shortcuts, such as engaging in price wars, is ineffective and unsustainable. Over-relying on price competition can destroy the business itself and harm the entire industry.
The fundamental principle of brand building is rooted in “Dao.” We must also avoid clinging to individual heroism. Although SMEs face numerous challenges in the post- pandemic era, they also have tremendous opportunities.
I firmly believe that if SMEs remain proactive and adopt a forward-thinking mindset, they will be able to embrace the opportunities of the post-pandemic era and create a brighter future.
Translated from original article source:
