Overview
As Malaysia's economy continues to be challenged by low oil prices, and lower business and consumer sentiment, companies are forced to search for external or internal funds to drive growth and sustain their daily operations. Working capital could potentially be the answer to a company's pursuit for additional funds.
Our recent study across 376 Malaysian listed companies showed that there is RM71bn of 'trapped' cash tied up in their working capital (the amount equivalent to 15% of combined sales) which they could extract should they decide to improve their working capital performance.
Our study also showed that companies which actively managed their working capital achieved stronger cash flows, higher revenue growth and better profit margins.
Explore our study to learn how PwC Malaysia can work with companines to help them optimise their working capital and achieve sustainable improvement.
Key findings ...
The oil & gas and apparel & luxury sector deteriorated the most in 2016
Inventory management continues to present a challenge to most companies in Malaysia
Top performers achieved 27% year-on-year increase in cash balance
For more key findings, download our report.
Related content
Follow us
