اثرات حوادث به شرکتهای کوچک و متوسط در مالزی Impacts of Disaster to SMEs in Malaysia

1. Background to the study In the last 15 years, world has seen a significance increase of number in natural disasters around the globe. Data by the Emergency Events Database (EM-DAT) shows that reported occurrence of disasters had increased by 63 percent while the number of reported death increased more than 85 percent. Within the similar period, economic damages caused by natural disasters were also increased more than 120 percent. The Table 1 shows the comparison of natural disasters’ impacts since 1985. In 2014, Asia experienced 46 percent of disasters caused by natural hazards globally. Since 1985 Asia has been the most vulnerable region in the world based on the number of disasters, number of deaths, number of people affected and economic damage, accounting for 50-70 percent of global natural disaster statistics [1]. These disasters in Asia affected not only individuals, but also businesses, from large multinationals to medium, small and micro enterprises. For example, as a result of the Thailand floods in 2011, at least 557,637 businesses in the flooded areas affected and 90 percent of them were small and medium enterprises (SMEs). In addition, about 2.3 million workers losing their jobs because of this disaster [2]. According to [3], economic losses were estimated at USD45.7 billion, most of it suffered by SMEs. Like other developing countries, SMEs are the economic backbone of Thailand, accounting for 98 percent of total businesses in the country since 2012 [4]. The authors added that SMEs accounted for 37.0 percent of gross domestic product (GDP) and 80.4 percent of the workforce. Thai SMEs also contributed to 28.8 percent of total exports and 31.9 percent of total imports by value. A similar situation can be seen in other Asian countries. In Malaysia, for example, SMEs contributing 32 percent of the country’s gross domestic production (GDP), employing 59 percent of the nation’s workforce and contributing 19 percent of the nation’s exports in 2010 [5]. However, according to a press statement by the Ministry of International Trade and Industry (MITI) in 2015, more than 13,000 SMEs were affected by the unprecedented flooding which hit Kelantan state in December 2014 [6]. In the Philippines, SMEs also play an important element in economic development. However, there is no statistic shows the contribution of SMEs to the Philippines economy but [7] stated that based on the latest census by the government, SME in Philippines comprises 99.6 percent of the registered companies in this country. In addition, SME provides a living for 65 percent of the total workforce. These countries (Thailand, Malaysia and Philippines) are example of emerging countries (based on the World Bank’s country classification) that depends on SMEs in their economic development. At the same time, these countries are also exposed to varying natural hazards which also affected all business including SMEs. Therefore, the purpose of this paper is to identify the types of natural disasters those affected SMEs in Malaysia and then evaluate the impacts of the disaster and identify problems arose in mitigating natural disaster among SMEs. Finally, this paper will propose approaches can be used by SMEs in preventing or minimising the impact of natural disaster to their business.