6 Key Serious Problems Faced by Associations in Malaysia

Association admin faced with operational challenges

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Associations play a vital role in Malaysia, serving as important platforms for networking, knowledge sharing, and community building. However, many associations in the country face significant challenges in managing their operations efficiently. 

This article explores 6 key problems faced by associations in Malaysia, particularly related to the management of member renewals, records, and follow-ups. These challenges not only impact the effectiveness of associations but also have cost and time implications. Let’s delve into each of these issues:

1. Membership renewal forgetfulness: The silent challenge

Associations often encounter difficulties in persuading their members to renew their memberships promptly. The primary reason behind this challenge is that members frequently forget about the renewal deadline. Association administrators, who are already busy with various operational tasks, find it challenging to send individual reminders to each member. This leads to delayed renewals and impacts the association’s ability to maintain an up-to-date and active member base.

2. Low renewal rates and fundraising woes

When membership renewal rates are low due to forgetfulness or a lack of reminders, associations struggle to generate the necessary funds to organize quality events and initiatives for their members. Reduced membership fee collection results in limited financial resources, hindering the association’s ability to offer valuable programs and services.

3. Time-consuming follow-ups and escalating costs

Associations invest significant time and effort in chasing individual members for renewal payments. Some members intentionally delay or avoid paying their renewal fees. This process consumes considerable administrative resources, and some associations even resort to hiring additional administrators to manage this daunting task. For example, hiring one admin could cost up to RM3,000 per month, translating to RM36,000 annually—an unsustainable cost for non-profit associations.

4. Missing records and documentation woes

The manual recording of membership data on paper or Excel files often results in missing records and a lack of a payment trail. Associations struggle to keep complete and accurate records of member payments. This deficiency can lead to disputes when members claim to have made payments that the association cannot verify. Additionally, high turnover rates among association administrators pose a challenge to retrieving historical records, as previous administrators may have left without adequate documentation.

5. Dependence on traditional payment methods

Many associations in Malaysia rely on traditional methods to collect payments for events and activities. Announcements are typically made through WhatsApp groups, social media pages, and emails. While these methods can be effective for communication, they lack the ability to sell event tickets or training classes directly. Payments are predominantly made via bank transfers, making it challenging to track payments accurately. Moreover, individual receipt issuance adds to administrative burdens.

6. Limited options for membership management platforms

Associations in Malaysia often face limited options when it comes to membership management platforms or systems. Many available platforms come with high monthly subscription fees, excluding additional costs like payment gateway fees. These platforms are frequently developed by overseas companies and charge fees in US Dollars, making them cost-prohibitive for Malaysian associations. The high payment gateway fees, further strain the limited funds of these associations.

In conclusion, the challenges faced by associations in Malaysia related to member renewals, record-keeping, and payment collection are significant and multifaceted. These issues hinder the effectiveness and sustainability of these vital organizations. Recognizing these challenges, EpicDewan has developed an association membership management system designed to address these pain points and empower associations in Malaysia and around the world. With a free-to-use base function, EpicDewan offers a solution to help associations overcome these obstacles and streamline their operations. Associations are encouraged to explore this platform and begin transforming their management processes for the better. Sign up now and take the first step toward more efficient and effective association management.

Read The EpicDewan Story and join us on this movement to transform your association! 

Also, learn the 5 Ways Membership System Benefits Associations in Malaysia and find out what is the 10 Activities & Events Associations in Malaysia Can Organize.

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