Geospatial approach for disaster business continuity plan for micro, small and medium enterprise in Malaysia

Abstract

The increasing number of disasters due to rapid urbanization, population growth, and extreme climate change resulted significant impacts in economic losses, business activities and their continuity. The Micro, Small and Medium Enterprises (MSMEs) undoubtedly serve as the backbone of many economies worldwide. In Malaysia, 98.5% of business establishments are MSMEs oriented, and the sectors contributed to 41% of the country’s Growth Domestic Product (GDP) development. Despite the significant contribution of MSMEs to the country’s GDP and the livelihood of the community, the absence of an integrated approach and practical framework is still at infancy stage to protect assets and support the MSMEs from direct and indirect impacts of disasters. The growing body of literature on business continuity and MSMEs resilience indicate an increased focus on research works to understand the disaster-based business continuity plan (DBCP) focusing on MSMEs resiliency. Therefore, this study aims to achieve the following objectives, (1) to identify metrics of MSMEs businesses in relation to multi-hazards, (2) to improve Business Impact Analysis (BIA) component in the DBCP framework using the GIS analyses (Geo-BIA) supported by local and expert knowledge, and (3) to develop a comprehensive conceptual DBCP framework emphasizing MSMEs in multi-hazard areas. Through systematic literature review, a conceptual framework of DBCP focusing on MSMEs was co-developed and assessed through a series of fieldwork. Three case study areas in West Coast of Sabah, namely (1) Kota Belud, (2) Ranau (Kundasang), and (3) Kota Kinabalu were accessed. A total of 80 respondents sampled from local MSMEs participated in the guided interview session and questionnaire survey. Assessment to determine metrics for economic, social, and environment was evaluated using the Descriptive and Frequency Analysis and the factors for MSMEs’ resilience were analyzed using Relative Importance Index (RII) value and interpretation. The results show that MSMEs resilience to disasters in all three case study areas are strongly linked to MSMEs’ local knowledge together with intervention and support from related government agencies, including those with strong fundamentals on BCP development. GIS Network Analysis for disaster event simulation and outputs demonstrated that each case study area is facing different disaster types. The main focus is on infrastructure disruption (e.g., inundated main roads due to flooding, water intake problems, and alternative temporary shelter for affected MSMEs). This study designed the operational framework of Geo-BIA, the first of its kind in Malaysia and serves the main element in developing the DBCP framework. These findings were then integrated into the DBCP conceptual framework, which was further validated through experts’ engagement and semi-structured interviews. Multi-sectoral and multi-disciplinary experts in BCP and DRR consists of academicians, practitioners, international and local government officials participated in the validation process. Index Analysis was adopted to determine the suitability of the proposed components of the DBCP framework. This research developed an integrated framework consists of MSMEs’ capital of economic, social and environmental in problem-solving phase, together with the Geo- BIA operational framework and key deliverables of DBCP. This practical framework can be used as to accelerate the implementation of BCP in vulnerable areas and to help local MSMEs to rebuild and boost their businesses, even during disaster in Malaysia. This research supports the development of national DRR and resilience strategies, translating a build-back-better concept into practice, and promoting resilient culture, as listed in the UNDRR Sendai Framework for Disaster Risk Reduction 2015-2030.