K-Konsult Group chief executive officer (CEO) Datuk Koong Lin Loong and Vimigo CEO Shane Mun signed a strategic partnership memorandum of agreement (MOA) on April 29, 2024 to establish an investment arm. The investment arm will acquire Vimigo's business units, combining their knowledge, experience and expertise to promote businesses competitiveness by providing the necessary training and software for operational and developmental needs.
The collaboration aims to enable companies to enhance efficiency for their operations and employees at minimal costs, coupled with relevant consultancy services to help businesses leverage resources effectively and explore broader markets. Once implemented, this partnership will involve a dedicated team of over a hundred professionals with expertise in corporate training, software and consultancy to offer a comprehensive range of services to local enterprises.
The development of Malaysian businesses, especially the small and medium enterprises (SMEs), has long been stagnant and exacerbated by the impact of the recent pandemic. Despite comprising 97.4% of total businesses and contributing 48.2% to the domestic job market, SMEs only account for 38.4% of the national GDP and 10.5% of total exports. Koong, following his involvement in various activities supporting SMEs over the years, identified a critical lack of reliable and accurate systems for measuring the efficiency and effectiveness of the companies’ machinery and workforce, thus hindering targeted and effective improvements.
“For instance, the government’s Progressive Wage Policy aligns employee salaries to productivity, where higher efficiency increases wages. However, many businesses struggle with accurately measuring employee efficiency. This highlights the need for a reliable consultancy plan and implementation of performance software so that companies can measure their performance against specific standards. Often, businesses lag in technology adoption, talent management and overall business practices due to blind spots in leadership thinking.”
“Therefore, this collaboration aims to provide businesses with an accurate and convenient performance management and reward system to monitor different aspects, such as production, operations, sales, finance and particularly, the efficiency of human resources management to identify and address shortcomings, enhancing their competitiveness in the market. The collaboration also includes relevant consultancy services and systematic training to ensure business owners or leadership can break free from conventional thinking and address limitations hindering their business development. After all, the leaders of companies are crucial in determining the direction of business development, and aligning their thinking with the times is essential for sustainable growth.”
“For businesses to thrive, financial support is essential. Through the consultancy and performance management systems mentioned above, businesses can enhance their financial situation, reduce costs and increase revenues. A healthy financial position is crucial to elevate a company's value and seek expansion opportunities, whether through bank financing or going public. We will continue to offer consultancy to help businesses grow and succeed.”
Meanwhile, Mun believes that this collaboration will accelerate Vimigo's market positioning and development in the South-East Asian market, enhancing the competitiveness of Malaysian businesses as they progress towards the Asean region and eventually target the global market.
One of the objectives outlined in the Prime Minister's 2030 National Industry Transformation Programme (NIMP 2030) introduced last year was to enhance technology for Malaysia to become a digitally thriving nation, promoting innovation to boost productivity and create new business opportunities for economic growth.
“We believe our collaboration will elevate Malaysian enterprises, aligning with the steps outlined in the NIMP 2030 blueprint. Through technology, software and expert assistance, business owners can identify their strengths and weaknesses, address shortcomings, enhance their capabilities and establish a solid foundation for sustained and healthy growth. This will secure their position in the international market, aiding Malaysia in achieving the vision of the NIMP 2030, driving industrial transformation and raising the standard of living for the people.”