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A recent survey by Sage, “We Power the Nation – People & Productivity”, revealed that RM56.6 billion is lost from administration activities.
The survey, commissioned by Sage and carried out by YouGov, a leading market research and data analytics firm, polled 3,000 small and medium businesses in 12 countries around the world including Malaysia.
It investigated productivity loss and how future investments in technology impact people, productivity and businesses in the long term.
Key findings from the report reveal:
- RM6.46 million is lost every hour from administration activities in Malaysia
- In a year, this totals to RM56.6 billion lost from administration activities
Malaysian businesses believe digital upskilling is a key solution to address productivity loss with:
- Almost half (46%) of business leaders in Malaysia consider digital skills a priority investment
- Over three quarters (78%) of all businesses are planning on digital skills investments
- 56% of respondents see improvements in productivity, profitability and customer service as a result of digital investments
- 52% are seeking government subsidised technology and tax breaks and revealed that free training would help improve digital skills.
The major productivity loss of nearly RM60 billion each year can be addressed through effective software solutions that support increased efficiency which help HR and Finance functions eliminate the burden of administration.
“What we see on the ground with our small and medium enterprise (SME) customers in Malaysia has been very encouraging as they see upskilling as a necessity. They are highly interested in learning and developing themselves to increase their productivity. Looking ahead, I believe what is needed is for the education system to futureproof the students of today by embracing new technologies such as artificial intelligence, big data, and expose students to the latest software and computer programming skills,” said Arlene Wherrett, Vice President and Managing Director of Sage Asia.
“This is crucial not only to the nation’s productivity, but can also help elevate Malaysia in its quest to attract foreign investment. The Malaysian education system should embed new and engaging curriculum to introduce these technologies early to prepare young adults entering the workforce of the future,” she further added.
Read the full article here.
BFM Tech Talk spoke to Arlene Wherrett, VP & MD for Sage Asia to discuss how Malaysian businesses can close the productivity gap – reduce their losses and increase efficiency.
Listen to the BFM podcast here