Working Capital Management in Malaysia: A Review of Practices Across Sectors
List of Authors
  • Norlaily Asnawi Sulaiman

Keyword
  • Working Capital Management, Cash Conversion Cycle, Sectors, Profitability

Abstract
  • Working Capital Management (WCM) plays a vital role in ensuring corporate liquidity, operational efficiency, and profitability. Despite its importance, research on WCM in Malaysia remains limited and primarily focused on listed companies and SMEs, with minimal emphasis on industry-specific practices. This study conducts a comprehensive review of journal articles published between 2015 and 2024 to examine WCM practices across various Malaysian sectors. The findings highlight that most research samples are drawn from the manufacturing sector, with less representation from other critical sectors. Key components such as inventory turnover, accounts receivable, and accounts payable are frequently used to assess WCM efficiency, often through the cash conversion cycle. Most studies report a significant positive relationship between WCM and firm profitability, although findings vary based on sector and performance indicators. Future studies should expand beyond SMEs and listed firms to explore WCM dynamics in underrepresented sectors.

Reference
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