Managing Business Finance During

Challenging Times
 Managing Business
Finance During
Challenging Times

Master Your Finance to

Achieve Business Success

https://www.linkedin.com/in/victor-yong-178a86176/
About Me
Victor Yong is a Licensed Financial Advisor, FAR licensee under Bank Negara Malaysia and Licensed Financial Planner
with expanded scope to advise on equities, debentures or warrants listed on Bursa Malaysia, CMSRL licensee under
Securities Commission Malaysia. He is with UOB Kay Hian Wealth Advisors Sdn Bhd. In his previous engagements, he
played various roles, from Head of Finance, Head of Internal Audit, Certified Trainer and Entrepreneur. He has co-authored a
book titled “Money Guide for Individuals and Companies”. This book was published by DOCR Business Advisory Services and is
currently being sold in bookstores nationwide and online including Popular and MPH.

QUALIFICATIONS:

• Master of Finance (RMIT University, Australia)

• Chartered Global Management Accountant (CGMA®) (CIMA, UK)

• Certified Financial Planner (CFP®) (CFP Board, USA)

• Certified Internal Auditor (CIA®) (IIA, USA)

• Certified Trainer/TTT – IRS/PSMB

• HRDF Registered Trainer

• Licenced Independent Financial Adviser (BNM/SC Malaysia – CMSRL/C0035/2020)

• The FIFA Certificate of Franchising Management and Leadership, Philippines

PROFESSIONAL AFFILIATIONS:

• Malaysian Institute of Accountants – Chartered Accountant

• Financial Planning Association of Malaysia – Certified Member

About Me (Continued)

https://mphonline.com/products/money-guide-for-individuals-companies
https://www.popularonline.com.my/malay/catalog/product/view/_ignore_category/1/id/180137/s/9789671898000/?did=5897
Learning Outcome:
1. Able to identify the important issues, strategies and actions during
challenging times.
2. Aware of the need to do things differently in order to continue and
survive during these challenging times.
3. New insights to achieve breakthrough during these challenging times.

Learning Objective:
Challenging times can be a blessing in disguise to remodel the business for
greater height. We will discuss the following:
1. Cash flow break-even
2. Excess corporate fund
3. Insurance planning and business risk management
4. Hybrid working models
5. Sale and leaseback
6. Mergers and acquisitions
7. Outsource non-core business activities
8. Disposal or close down loss-making business unit
9. Custom fundraising
10. Budgeting
Challenging times / Definitions

Top synonyms
hard times noun
a time of difficulty

hard time noun

a difficulty that can be overcome with effort

Words
Challenging adjective
requiring full use of your abilities or resources

Times noun
a more or less definite period of time now or previously present

Challenging times definition and meaning (powerthesaurus.org)

Malaysia to curate programme to help SMEs with cash flow problems
The most common reasons why SME bank loan applications get rejected are insufficient cash
flow, an unviable business, and high levels of debt.
By: Claire Lee | October 14, 2021

https://hrmasia.com/malaysia-to-curate-programme-to-help-smes-with-cash-flow-problems/
 Cash Flow Break-even
Strategies
Ensure your cash inflows and cash outflows are
equal or overall cash position is positive
Plan and implement with your Finance Head
Actions
Review stocks
Reduce debtor collection period
Seek longer credit term from creditors
Offer to sell company cars used by the respective
employees back to them at a discount
Try to source for raw materials, etc at lower price
both
domestically and also internationally.
Increase market share to achieve greater
economies
of scale e.g. export, franchising, etc.
Chip prices set to rise into 2022 as TSMC hikes
rates
Written by Nikkei Asia Published on 6 Sep 2021

https://kr-asia.com/chip-prices-set-to-rise-into-2022-as-tsmc-hikes-rates
Which companies on Bursa have high cash and low debt
Adam Aziz
/The Edge Financial Daily

April 13, 2020 09:24 am +08

https://www.theedgemarkets.com/article/which-companies-bursa-have-high-cash-and-
Excess Corporate Fund

Strategies Actions

Review and maximise your return with your Use money market instruments to maximise return

licensed financial advisor / CFO. with tax saving strategy.

Consider PRS.
 Options Available

Maybank 1-Month
Particulars FD Cash Management Fund

Interest rate return p.a. 3.15% Averagely 3.7% (net of fees)

Corporate tax effect 24% Exempted
Effective interest rate 2.40% 3.70%
Amount invested (RM) 1,000,000 1,000,000
Interest return (RM) 24,000 37,000
Difference (RM) 13,000

Source: Morningstar, www.maybank.com.my

No. Staff Yearly Contribution Company Tax Saving
Category Remuneration % of Amount Tax Rate Yearly
(RM) Salary (RM) (%) (RM)

1. Director A 300,000.00 7 21,000.00 24 5,040.00

2. Director B 300,000.00 7 21,000.00 24 5,040.00

3. Director C 300,000.00 7 21,000.00 24 5,040.00

Total Tax
Total Contributions =63,000.00 Savings = 15,120.00
Note:

1. Tax savings for companies

2. Funds for retirement - employees / directors

 Insurance Planning & Business Risk
Management

Strategies Actions

Review, revise and restructure your insurance coverage Avoid overinsured or underinsured your assets in
with licensed financial advisor / experienced Accountant. order to save money and/or safeguard your assets.

Minimise insurance premium.

Example: Motor / Non-Motor Insurance - Review, Revise & Restructure for Savings

Existing
Particulars Insurer Insurer 1 Insurer 2 Insurer 3

RM RM RM RM

Total sum insured 10,000,000.00 10,000,000.00 10,000,000.00 10,000,000.00

Total premiums 45,000.00 35,000.00 38,000.00 40,000.00

Cost saving 10,000.00 7,000.00 5,000.00

Saving (%) 22.22 15.56 11.11

Over 50% of SMEs not insured
•SMEBIZ Premium
•Monday, 15 Jul 2019
•12:00 AM MYT

https://www.thestar.com.my/business/smebiz/2019/07/15/over-50-of-smes-not-insured/
Sale and Leaseback

Strategies Actions

Review and evaluate whether to sell your Find out the demand for your property and consider

property and leaseback. sale and leaseback in order to obtain/generate cash.

Club Med Cherating is up for sale, with a leaseback arrangement

By Sharen Kaur - October 13, 2021 @ 5:24pm

Club Med Cherating is up for sale, with a leaseback arrangement | New Straits Times | Malaysia General
Business Sports and Lifestyle News (nst.com.my)
Mergers & Acquisitions

Strategies Actions

Try to get interested party to acquire or merge with Evaluate the offer received (if any).
your company.

Oversea Enterprise Bhd was acquired by Eddie Chai

Example: buy and sell business platform. in 2020 although it has been losing money for 3 years

and revenue has been on a downtrend for at least

the past 6 years.

Anzo MD Chai Woon Chet takes 63% stake in Oversea Enterprise
By JOSEPH CHIN
•BUSINESS
•Thursday, 06 Aug 2020
•2:54 PM MYT

Anzo MD Chai Woon Chet takes 63% stake in Oversea Enterprise | The Star
Outsourcing non-core activities

Strategies Actions

Relook at all your business activities and focus on Outsource non-core business activities to others for

your core business activities saving money.

Do cost-benefit analysis Example: call centres (BPO company).

Outsourcing trend drives growth at Century Logistics
Joyce Goh
/The Edge Malaysia

June 26, 2015 18:00 pm +08

Outsourcing trend drives growth at Century Logistics | The Edge Markets

Disposal or Close Down Loss-making Business Unit

Strategies Actions

Review the performance of all business units Restructure and stop the bleed

Assess whether to close down loss-making

business unit/segment
FGV to sell loss-making China subsidiary for RM100m
Friday, July 12th, 2019 at Business | News
By MARK RAO / Pic By MUHD AMIN NAHARUL

https://themalaysianreserve.com/2019/07/12/fgv-to-sell-loss-making-china-subsidiary-for-rm100m/
Custom Fundraising

Strategies Actions

Consider fundraising options Take action on fundraising activities

Example: Equity crowdfunding, P2P,

private placement
pitchIN raises RM5.5 million from 322 investors
through own equity crowdfunding campaign
Published: Jun 21, 2021 10:43 AM
⋅
Updated: 10:43 AM

https://www.malaysiakini.com/announcement/579814
Why Is it Important for a Business to Budget?
By Lisa McQuerrey Updated March 12, 2019

https://smallbusiness.chron.com/important-business-budget-385.html

Budgeting is particularly important for small-business owners, who often operate on a

shoestring budget. Being even a little bit off on cost projections or earnings can have a
devastating effect on a small operation.

To ensure budgeting is done accurately, it may be worthwhile to hire an in-house or outside

accountant, or a business manager who has expertise in business finance. This individual can
help establish an accounting system, track expenditures and produce reports that help
business owners make calculated and informed decisions about business operations.
APPENDICES
List of Peer-To-Peer Platforms List of Equity Crowdfunding Platforms

• Funding Societies • Ata Plus

• Alixco • Crowdo
• B2B Finpal • Eureec
• Fundaztic • pitchIN
• Nusa Kapital • FundedByMe
• QuicKash • CrowdPlus.asia
4) Malaysia Digital Economy (MDEC) Sdn Bhd
2360, Persiaran APEC, 63000 Cyberjaya, Selangor.
Tel: 1-800-88-8338 +603 8315 3000
E-mail: clic@mdec.com.my
Website: http://mdec.my/

5) Perkeso
Menara Perkeso, 281, Jalan Ampang, 50538 Kuala Lumpur, Malaysia.
Tel: +603 4251 5317
E-mail: perkeso@perkeso.gov.my
Website: https://www.perkeso.gov.my

6) Kementerian Pembangunan Usahawan dan Koperasi (MEDAC)

47, Persiaran Perdana, Presint 4, Pusat Pentadbiran Kerajaan Persekutuan, 62100 Putrajaya, Malaysia.
Tel: +603 8883 6017 +603 8883 6462
E-mail: sc@medac.gov.my
Website: http://www.medac.gov.my
Thank You