MINI CASE: Helping SMEs Rise to Challenges Posed by the Covid-19 Pandemic

Small and medium-sized enterprises (SMEs) have always been the lifeblood of the Malaysian economy. As of 2019, they contributed 38.9% of the country's gross domestic product (GDP), and 48.4% of national employment (Department of Statistics Malaysia, 2020). Important as they are, SMEs are financially more fragile than larger firms - they own fewer assets and cash reserves, and score lower on productivity levels. As a result, the impact of the Covid-19 pandemic on them has been immense. According to the latest survey by the Small and Medium Enterprises Association (SAMENTA), 34% of SMEs experienced a significant decrease in sales of more than 20% in 2020, compared to 2019.

Question:

Examine the possible strategies available for the SMEs to expand out of their home country and to look for new business opportunities in the post-pandemic era. Provide an industry as an example.

• Exporting
• International niche marketing
• Domestically delivered or developed niche services
• Direct marketing including electronic commerce
• Participation in the international supply chain