5 Easy Ways For Malaysians To Protect Their Business

Here are some common risks that Malaysian SMEs tend to overlook. Are you guilty of ignoring any one of these risks?

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5 Easy Ways For Malaysians To Protect Their Business
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So you’re a business owner now and you’re really excited. The tables and chairs in your trendy new café are aligned just the way you like it and the décor is industrial chic with a touch of colloquial whimsy. You have some safety measures in place and the fire extinguisher is strategically placed behind a potted plant. Nothing could go wrong. Right? Wrong. There’s a lot more to it and we’ll walk you through it.

Here are the most common business risks that usually get overlooked, but don’t worry as we show you easy steps you can take to mitigate and/or prevent them:

Risk 1: Inadequate fire protection and/or poor maintenance

Yeah, you may have a fire extinguisher stashed at your business premises but don’t hide it behind that plant. Also, did you know that there are five types of fire extinguishers labelled with letters from A to E. The most common one would be Type A, which extinguishes fire from solid material like wood, paper, cloth, and other flammable objects, so choose an extinguisher that best suits your needs.

What to do: The fire extinguisher should not be obstructed by objects and there must be a clear parameter around it. It should also be regularly maintained and staff should be educated on its use.

Risk 2: Fire due to excessive amounts of combustibles (flammable liquids, oils, discarded waste, etc.)


The first thing that piles up when your business is up and running is paperwork. Clutter is a big problem if you’re not the meticulous type and it’s all too easy to disregard stray objects. Things like paper-based office stationery and flammable cleaning products need to be stored separately. 

What to do: Establish a housekeeping program that ensures the proper storage of dangerous goods, inflammables, and waste. Fire and Rescue Department of Malaysia has some useful tips for handling candles too.

Risk 3: Electrical fires due to faulty wiring


Malaysia’s worst fire involving a high-rise building happened on 8 April 1976 and it was due to an electrical short circuit. The fire raged for 30 hours before it could be put out.

What to do: What the official portal of Fire and Rescue Department of Malaysia has to say is, use only one heat producing appliance at a time. Get the ground fault circuit interrupters (GFCIs) installed on all kitchen counter outlets. Also, keep metal ladders far away from power cables.

Risk 4: Natural catastrophes like floods and storms


We’re known for flash floods in Malaysia and equipment damage due to natural disaster can take a toll on the cash flow of your business. One ‘act of god’ and you’ll find yourself with a wrecked store.

What to do: Have a study done with the local authorities (such as the Department of Irrigation and Drainage, Malaysian Meteorological Department and Special Malaysia Disaster Assistance and Rescue Team) on the natural catastrophe exposure in the area. Your insurer will be able to assist you with the information you need and help establish an emergency program should the hazard exist.

Risk 5: Theft


Nobody thinks it’ll happen to them until it happens to them. Theft will affect a myriad of things from cash in the till to stocks in your storeroom. Trained criminal professionals can hit your establishment without you even knowing about it.

What to do: Establish a security program be it CCTV, guards, or access controls for starters. You can also establish contingency plans with backup suppliers in case of theft to ensure a smooth workflow and that your business is not disrupted from mishaps like these.

As they say, prevention is better than cure and if you’ve read this list and realised you haven’t got any of these things sorted or worse, have no idea where to start, AXA SME Insurance is your answer. AXA offers professional risk management services at no cost to their business insurance customers. Their risk engineers are able to conduct thorough risk assessment on your business, provide mitigation advice and assist in the development of business continuity plan.

To find out more about AXA SME Insurance, click the link here.

Also, be sure to watch the video below of a café business owner sharing her experience as a case in point of how AXA SME works in the real world:

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