ENHANCING GLOBAL BUSINESS RESILIENCE: DISASTER PREPAREDNESS STRATEGIES AMONG MSME MANUFACTURERS IN NORTHERN PENINSULAR MALAYSIA

Abstract

The concept of disaster preparedness is closely linked to the coping strategies employed by firms, particularly in the manufacturing sector, to deal with disasters, especially for MSMEs. The study focuses on analysing different mitigation measures implemented to enhance the disaster preparedness index of MSMEs. The data was collected from MSME manufacturers through stratified random sampling in Penang and Kedah. The study had a response rate of 27.4%. The index is later used to assess the significant connections between disaster preparedness levels and the characteristics of MSMEs. In addition, this study highlights the main obstacles that may hinder their investments in protective measures to address both current and future disasters in their communities. In terms of the findings, it is interesting to note that medium-sized manufacturers with legal ownership structures have a strategic advantage when it comes to becoming more resilient in the face of disasters. These manufacturers tend to have higher levels of preparedness compared to smaller manufacturers. Regarding policy implications, it is advisable for MSME manufacturers who are impacted or may be impacted to establish a sustainable work environment with greater levels of preparedness. This will help them become more resilient to disasters and maintain their competitiveness both locally and internationally. To enhance their global business resilience capacities over the long term, it is crucial for potentially affected and affected MSMEs to take advantage of disaster risk financing programmes offered by governments and other organisations, both locally and internationally.