HSBC: Companies must continue with digitisation, technology shift to remain relevant
08 Oct 2021
A continued commitment to structural shifts in digitisation and technology innovation across businesses and their industry groups is crucial to avoid the risk of Malaysia’s middle-market companies falling behind regional peers.
HSBC Malaysia country head of commercial banking Andrew Sill said that over the past 18 months, pandemic-induced lockdowns have driven many Malaysian businesses to accelerate their digital connections with customers, suppliers and employees.
“This has been an incredible commercial enabler. However, HSBC is observing that some businesses, particularly in the mid-market space, are slowing down their investment.
“So, the risk is that businesses are seeing digital adoption as a short-term switch rather than a strategic shift,” he said in a statement on Thursday.
Having made the shift to digital, he said companies need to forge on and not let momentum stall, as it is particularly important for Malaysian companies for three reasons, namely, safeguarding key sectors, capturing shifting supply chains, and matching consumer needs.
“The soft macroeconomic and revenue condition means businesses are clearly looking at their costs. However, digital adoption and continued innovation cannot be seen as nice to have but instead must be seen as a business imperative.
“This requires some shift in business approach, including changing management mindset and mobilising industries as a whole,” he added.