KPMG Malaysia said that having cash on hand makes a difference for small businesses in the country, as the ripple effects of the Covid-19 pandemic unfolds on a global scale.
“Businesses both big and small are challenged to manage their cash flow position as their first line of defense. Left unmanaged, even the most profitable business can rapidly become unsustainable, if cash controls are weak and visibility over cash pipelines is limited,” said Datuk Johan Idris, managing partner of KPMG in Malaysia.
“This started as a health crisis, which quickly evolved into a global financial crisis at a speed and magnitude we have not seen in our lifetime. Businesses need to anticipate and prepare to manage its ‘cash squeeze’ and competing cash flow demands,” he added.