Optimising Working Capital for Growth

2019 Malaysia Working Capital Study

Over 400

listed companies across 14 industries studied
RM133bn

potential cash release with better working capital performance
3X

Small companies require 3x more working capital than large companies
20% | 3%

Overall operating profit decreased by 20% in spite of a 3% increase in overall revenue

Overview

Against the backdrop of the Malaysian economy facing many challenges amidst rising cost of doing business, optimising cash is still key to maintain a steady course in these uncertain times. Possessing the ability to turn sales into cash faster ultimately reduces the cost of running a business and is a source of competitive advantage.

Our study on the 423 listed companies in Malaysia shows a marginal improvement in Cash to Cash Cycle Days from 55 days in 2017 to 54 days in 2018. This means that, as a whole, companies were able to convert profits into cash sooner as a result of shorter receivable days.

Despite the improvement, there is a potential cash release of up to RM133 billion from their balance sheets (approximately 22% of total sales) through better working capital management practices.

Read our report for more interesting insights on how PwC Malaysia can help you improve your working capital and release trapped cash in your business.