Bahrain needs to develop legislative infrastructure to speed up digital transformation in e-commerce, the country’s main association of business owners has said.
In its latest report on the economic impact of the coronavirus crisis, the Bahrain Chamber for Commerce and Industry (BCCI) has also urged the government to bring in laws that provide more support for intellectual property and trademark protection and bring about improvements in communications infrastructure and digital networks.
The country needs an ecosystem that encourages the financial sector to provide easy and accessible digital banking services, said the chamber in its list of recommendations to overcome the Covid-19 crisis.
After the recovery, reliance on new technology will increase the risks of cybercrime and consequently the private sector will need help from the governments to manage these risks and reduce the effects.
The Bahrain Chamber is calling for a revision to the list of business activities permitted under the virtual CR system.
It wants the number of activities allowed to be increased in keeping with the current situation and the major shift towards business automation after the pandemic.
Calling raising the level of food security a national priority, the BCCI has also requested that the private sector get more support to increase investment in the food sector.
The business community has also sought official recognition for remote communication programmes, virtual meetings and direct learning, which would help ensuring implementation of such projects.
For businesses struggling to cope with the slump, the chamber has advised administrative flexibility and changing the business model. It said today’s world demands that enterprises have the ability to adapt to new situations and procedures to serve business interests, develop skills and encourage innovation.
To make the most of the trend of digital transformation, companies must look at applications and learning e-marketing methods, adopting digitalisation responsibly and safely, and entering the world of e-commerce.
The BCCI has also advised businesses to seek out merger options or strategic partnerships (joint ventures) at the present time to reduce losses incurred due to the spread of the global pandemic.
Merged companies are better able to remain in the market, reduce their expenses, and have enough liquidity to meet operating obligations, it said.
Companies would do well to use the liquidity to take advantage of opportunities available in the market, especially high demand commodities, and investing in what is needed, at the same time they should eliminate or reduce all excess fixed costs such as rent and variable operating costs.
They must also avoid restrictions on the movement of human capital and ensure that appropriate occupational health and safety requirements are followed to reduce risks, the BCCI has recommended.
Finally, the chamber has urged telecom companies to develop attractive packages allowing more companies to go for digital transformation, ranging from websites and electronic applications, incentives to migrate to the cloud, automating business processes (CRM, ERP, POS), to risk management and cost optimisation.