Rising Business Costs In 2025? Here’s One Smart Move SMEs Can Do To Stay Afloat

Running a small or medium-sized enterprise (SME) in today’s climate can be quite a challenge, especially when you have just started your dream business. 

With the cost of doing business on the rise, from fuel prices to electricity bills and even delivery costs, every Ringgit counts.

And let’s be honest, in 2025, it feels like everything has started to rise: manpower, maintenance, the tariffs… you name it.

But one hidden cost that often slips under the radar? The delivery logistics.

Whether you’re running a popular cafe in Penang, a thrift store boutique in KL or a light manufacturing business in Johor, you’re likely to feel the logistics pressure.

Rising Costs Are Eating Profit Margins

We’re all feeling the pinch.

Fuel prices are creeping up and utility bills seem to jump every other month.

Even sending out a simple delivery can cost more than it should!

According to a recent report by the Small and Medium Enterprises Association of Malaysia (Samenta), many SMEs are facing severe margin compression due to rising costs of raw materials, maintenance, manpower and other essentials.

“This disconnect between sales growth and tightening cash reserves is indicative of severe margin compression among our SMEs, driven by rising costs of raw materials, energy, and salary,” said Samenta President, William Ng.

He also added that the ripple effect of the removal of diesel subsidy, the increment in sales and services tax (SST) and wage inflation following the continued labour crunch are hurting the already thin margin of most SMEs.

So, where can your small business tighten its belt without sacrificing quality?

Owning A Delivery Fleet: Is It Still Worth It?

Let’s say you have your own delivery vehicle for your business. It sounds like a smart move, especially during peak season, because you’ll use the vehicle frequently.

But what about the slower months? The vehicle still racks up costs in maintenance, insurance, road tax and more. 

The worst part is when it breaks down. Deliveries get delayed, customers get frustrated and your business takes a hit.

Idle vehicles mean idle costs. And that’s the kind of luxury SMEs simply can’t afford anymore.

The On-Demand Alternative: Smarter, Flexible, Scalable

If your business wanted a pay-as-you-go delivery service, Lalamove would be the best delivery solution for small businesses. You can enjoy the flexibility without worrying about commitment.

Here’s why more SMEs are switching to on-demand delivery:

1. Pay-per-delivery: No monthly maintenance and no fixed costs needed.
2. Scalable delivery support: Scale up or down the delivery drivers according to needs.
3. Same-day delivery: Book an instant delivery on the day itself.
4. Multi-stop delivery: Arrange a multi-stop delivery with only one delivery order.
5. Real-time tracking: Enjoy a real-time delivery update.
6. Integration tool for businesses: Enjoy convenient delivery arrangements with API support.
   

Rethink Your Logistics Strategy In 2025

Trust us, rising business costs in 2025 aren't going away. But the way you manage it can make all the difference.

Switching to an on-demand delivery service isn’t just about convenience, it’s a smart and cost-saving strategy for SMEs in Malaysia.

If you’re looking for a way to cut that unnecessary cost, try Lalamove Business to scale your business delivery without the upfront investment. 

Our Business account managers would be more than happy to assist you in your new beginnings.