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The Importance Of Digitalisation For SME’s In Malaysia

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As of 2020, there are over 1.1 million SMEs registered in Malaysia, making up about 97.2% of total business establishments in the country. Microenterprises make up 78.4% while small businesses account for 20% and medium ones are 1.6%.

With JustLogin making its debut in Malaysia, the leading HR Cloud software provider from Singapore offers a suite of HR and office collaborative applications with its mobile-first and employee-first approach tailored for today’s hybrid and remote workstyle where digitalisation is at the forefront.

JustLogin is not only payroll-focused as it has a host of solutions including SafeClock – all of which enhance the productivity and office efficiency through streamlining administrative work processes and communication channels.

Recently, Smart Investor did an exclusive interview with Mr. Chan Chiou Hao, COO of JustLogin to share his insights.

1. Why is it so important to adopt digitalisation within the SME community?

In line with the challenges faced by SMEs, many do not have the budgets that larger organisations have when it comes to hiring the necessary headcount required to run their companies efficiently. However, with the advent of technology, especially the democratisation of enterprise software with cloud technologies, it has enabled SMEs to do more with less. They are able to be more effective with less people and are able to outsource more functions of their business.

In a time-starved era, it’s more crucial than ever to adopt digitalisation. SMEs will risk being left behind when it comes to meeting their customers’ demands if their core business operations or structure is compromised or neglected.

Only with a solid base foundation, SMEs can focus on ‘important’ matters – which include making informed business decisions, enhancing productivity and increasing efficiency and accuracy.

We believe that in order to grow the economy, the necessary essentials are needed to kickstart or digitise business operations. We have seen a boom in start-up ventures over the years with the trend of businesses moving towards digitalisation and the IR4.0 era.

2. How are HR, tech and business related? And how do these aspects affect how a business would operate?

In most businesses, HR costs (e.g.: salaries) are usually one of the biggest (if not the biggest) costs in a company’s P&L. However, it is quite surprising that a lot of businesses tend to under-invest in HR or systems that support their HR.

Take constructing a building for example. Without a proper or solid base foundation, it will be at risk of collapsing as it is vulnerable.

This applies to businesses as well. At the core of every organisation, these 3 key elements (HR, tech and business) make up the backbone of the company. With the integration of these key elements, other ground work will operate at a smoother pace.

3. Tell us about the tech behind JustLogin’s solutions. What are the key features set to be a gamechanger in the Malaysian business landscape and how were these features developed?

With the advent of the gig economy, more and more companies are finding themselves hiring a mix of permanent, part-time and gig workers. This has further complicated      how HR operates as they have to deal with complex requirements. JustLogin’s HR Cloud is perfectly suited for this new workforce. Some of JustLogin’s features include digitised expense claims, employee time management, leave entitlements which includes medical, compassionate and maternity, benefit management, people insights, payroll management and SafeClock, an all-in-one contactless temperature scanner, attendance tracker and door access.

These features are fully updated and integrated to comply with Malaysian statutory regulations. JustLogin can also automatically generate EA forms, for example and is always up-to-date with contribution rates and other policy changes made by the Malaysian government.

JustLogin’s mobile app allows employees to handle HR matters wherever they are – at home, on the bus, or at a cafe. Whether they have to apply for leave, download their payslips or look up their colleagues’ contact, it’s all there in their pocket.

4. As a pioneer in HR on the cloud, what are some significant changes that you have seen in the industry in the last 2 decades?

Companies are now moving towards the cloud. A lot of business owners are starting to be more comfortable with having their corporate systems on the cloud. This has increased the ability of small companies to punch above their weight. They are no longer limited by the budget requirements of enterprise systems of the past.

With more than 50% of the workforce being millennials or Gen Z, it has caused a seismic shift in how companies retain employees. If your systems are still archaic and manual, chances are companies will have a harder time hiring and retaining employees from these generations of workers. Companies need to start thinking of mobile and employee-first approaches.

There is constantly an upgrade or update in the host of solutions offered in the market. However, not all of them are suitable or customisable to meet business needs. What is commonly lacking is the integration between these solutions, which can be quite challenging when it comes to syncing to a business’s operations. Business owners often find redundancy in multiple apps/platforms that will need to be used.

Now, we have a varying selection of helpful tools on the cloud. Take for example, JustLogin has essential tools from onboarding new employees, Payroll, Leave, Attendance, Expense management, Mobile App to SafeClock – all integrated on one platform!

5. Why has JustLogin decided to venture into Malaysia?

Based on the latest data in Malaysia Statistical Business Register (MSBR) released by Department of Statistics, Malaysia (DOSM), the total number of SMEs in Malaysia in 2020 was 1,151,339 or 97.2% of total business establishments.

On average, the number of SMEs has increased by 4.9% every year since 2015. The services sector has consistently accounted for more than 80% of all SMEs whereby in 2020 it contributed 85.5%, amounting to 984,643 SMEs. The construction sector climbed up to be the second largest contributor during the year by contributing 7.4% (85,637).

Meanwhile, about 5.1% of SMEs (58,439) were involved in the manufacturing sector, followed by 1.7% (19,130) in the agriculture sector, with the remaining 0.3% (3,490) in the mining & quarrying sector.

In terms of size, microenterprises accounted for 78.4% (903,174), the largest share of SMEs. There has been an increment of 209,504 microenterprises, registering an average growth rate of 5.4% every year from 2015 until 2020. The small-sized formed 20.0% (229,876) of the total SME establishments and the balance 1.6% (18,289) were medium-sized SMEs.

Seeing this data, it was only natural for us to expand to Malaysia, as the Malaysian business landscape is made up of more than 97.2% of SMEs. With more start-ups and SMEs emerging in the market in the last 3 years, it is considerably timely for us to come in and equip start-ups, SMEs and business owners alike with the right solutions to further streamline business operations and enhance productivity.

With Malaysia’s market size aside, we want to be part of Malaysia’s SME digitisation journey. We have seen many of our customers experience success by implementing JustLogin and have stayed with us for many years. We hope to see the same success and growth with our Malaysian customers too.

6. JustLogin is offering an exclusive 6-month complimentary trial to all SMEs with valid SME Status Certificate by SME Corporation Malaysia (SME Corp. Malaysia). Are there any other collaborations in the pipeline?

Yes, we are constantly on the lookout to collaborate with different agencies, partners and authorities which are relevant and will aid the market in Malaysia.

7. What are the requirements needed to get started with JustLogin?

If you have a stable WiFi or Internet connection and a smartphone, you are set to go – it’s that simple!

In a nutshell, as long as you have access to the Internet (via mobile, desktop, tablets etc), you will be able to use JustLogin.

8. Do share about JustLogin’s expansion efforts to Malaysia.

Our objective is to definitely help SMEs nationwide solve HR problems with our products, driven by intuitive design and innovative technology. JustLogin’s customers no longer require manual data entry or tedious administration, just productivity and an employee-first approach.

In terms of East Malaysia, it’s an untapped market where we would like to have our presence in the Sabah and Sarawak region. For one, as Sarawak is moving towards a digital economy, it’s the perfect timing for us to expand our services to benefit entrepreneurs, SMEs and business owners, as long as the demand is present.

According to the Economic Census (2016) by Department of Statistics Malaysia (DOSM), Sabah and Sarawak are both among the states each with a large presence of SMEs of over 6% and growing, apart from Selangor, WP Kuala Lumpur, Perak, Johor and Penang. We believe that this number will continue growing and we are excited to embark on our services in these states.

About JustLogin

  • What is JustLogin?

JustLogin is the premier Software-as-a-Service (SaaS) provider offering a suite of HR & office collaborative applications for the global business community. We are an award-winning software and expert cloud-based HR company from Singapore that strives to understand the administrative pains of any business.

Ranging from managing staff leave to the dissemination of payrolls and claims, JustLogin has just the right solution for all businesses, including start-ups and Small Medium Enterprises (SMEs). We emphasise productivity and a mobile-first and employee-first approach, that is tailored to meet individual needs. Our solutions are unique and are aimed at saving time, manpower and money while increasing productivity, efficiency and accuracy.

  • How does JustLogin work?

It allows users to access and download payslips on the go, apply for leave anytime anywhere, deal with expense claims effortlessly and clock-in and out of work via its face recognition technology. The snap, scan and send functions also make submitting claims hassle-free and seamless.

Instead of being bogged down with tedious forms and manual data entry for both HR and staff, JustLogin steps in to automate and streamline the administrative process powered by AI and microservices technology.

  • When was JustLogin established?

JustLogin was established on 3 February 2000 and we have just celebrated our 22nd anniversary!

  • What was the inspiration behind JustLogin?

JustLogin began with the goal of simplifying and automating HR, so companies can devote more time to people and productivity – not paperwork. We pioneered HR on the cloud back in 2000 so small to mid-sized businesses could enjoy the productivity only availed to big enterprises with deep pockets back in the day. HR on the cloud enabled small businesses to subscribe to enterprise-level software for a fraction of the cost without having to invest in their own R&D.

  • Are there any plans for regional expansion?

Yes. Before we tap into different markets, we will first identify and conduct market research on the regions with potential for growth which will benefit from JustLogin.

  • Which industries can benefit from JustLogin?

Just about any industry across the board can enjoy our solutions ranging from Retail, F&B, Tech, Consulting to Manufacturing.

  • How can I ensure that there isn’t any data or security breach of my company’s assets or sensitive information with JustLogin?

We’re certified compliant with ISO 27001 standards, a widely-recognised security management standard that dictates best practices and comprehensive controls for an information security management system (ISMS). The ISMS includes people, processes and IT systems by applying a risk management process. 

The certification requires us to:

  • Systematically evaluate our information security risks, taking into the account the impact of company threats and vulnerabilities
  • Design and implement a comprehensive suite of controls and other forms of risk management to address company and architecture security risks
  • Adopt an overarching management process to ensure that the controls meet our information security needs on an ongoing basis

The ISO 27001 certification is specifically focused on the JustLogin ISMS and measures how our internal processes follow the ISO standard. The services included in the scope for our ISO 27001 certification include: Payroll, Leave, Clock, Expense, Benefit and People.

  • Who is the Certifying Agent for JustLogin?

JustLogin’s Certifying Agent is TÜV SÜD Management Service GmbH, an established and internationally recognised testing body, whose certifications are well accepted by manufacturers, third party buyers and government authorities worldwide.

  • How does one begin using JustLogin?

We offer a 14-day free trial (www.justlogin.com/my/free-trial) where potential customers can see how our solutions can work for them. Our friendly employees are also happy to chat and provide more in-depth detail for customers by tailoring services to business needs. Simply connect with us via our website or at our landline numbers available at www.justlogin.com.my

  • Who are some of JustLogin’s customers?

Some of our customers include IKEA, Sumitomo Chemicals, Valentino, Owndays, Toyota Tsusho, Asus, Hansgrohe, Nippon Airways, Roquette Asia, and more.

Malaysian customers include Inside Scoop, Rinnai and Sunway Medical Centre, and more.

  • How many customers does JustLogin have?

Over 2,500 customers have enjoyed our services over the course of 22 years from different regions.

  • What is JustLogin’s current workforce size?

We have over 85 professionals at JustLogin.

  • Which countries are JustLogin’s customers from?

We have been fortunate to have customers from Australia, Belgium, Cambodia, China, Cyprus, Fiji, Holland, Hong Kong, India, Indonesia, Japan, Korea, Malaysia, Maldives, New Zealand, Philippines, Singapore, Switzerland, Taiwan, Thailand, UAE, USA and Vietnam.

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