KUALA LUMPUR: Small and medium enterprises in Malaysia must actively embrace digital transformation or risk falling behind in an increasingly competitive business environment, said Digital Minister Gobind Singh Deo.
He underscored the urgent need for SMEs to not only understand the value of digitalisation but to act on it.
“In terms of knowledge about digitalisation, most of it is there. If we have the knowledge but we do not use it to strengthen our business, then that becomes a problem,” he told reporters at the launch of CTOS SME Biz Day 2025 today.
Gobind noted that with SMEs comprising nearly 97% of the country’s business population, their digital readiness is critical to Malaysia’s broader economic resilience and recovery.
“While digital technologies offer the promise of efficiency and scalability, many SMEs are still hindered by limited access to resources, awareness, or financial support,” he said.
To address this, the Digital Ministry and Malaysia Digital Economy Corporation (MDEC) launched the Business Digitalisation Initiative (BDI) in March, Gobind said.
“The initiative consolidates existing digital assistance programmes from across various agencies into one centralised platform. The goal is to eliminate fragmentation and make it easier for businesses to discover and apply for relevant support.
“There are many initiatives out there, but they are scattered across different platforms and agencies. With BDI, we have brought them together so SMEs can more easily understand what’s available, whether they qualify, and how to access that support.”
The BDI platform provides information on funding, training, advisory services and digital solutions that SMEs can tap into, Gobind said, adding, “MDEC will continue to enhance the initiative based on user feedback, especially from underserved regions where awareness of government programmes remains low.”
Furthermore, Gobind reaffirmed the Digital Ministry’s support for new SME-focused initiatives unveiled by Prime Minister Datuk Seri Anwar Ibrahim in Parliament.
“These include expanded financing options and policy incentives tailored to the micro, small and medium enterprise segment. We, at the Digital Ministry, are deeply moved and fully support these initiatives. MDEC will look into how we can help ensure the Prime Minister’s announcements reach the intended sectors quickly and effectively,” Gobind said.
Addressing SME digital adoption rates, the minister said that while comprehensive national data is currently unavailable, MDEC is developing a Digital Maturity Index to close the gap.
“The index will collect and analyse data on the digital readiness of businesses across sectors and geographies. We hope to use this tool to provide accurate insights, identify weaknesses, and monitor progress. It will help us determine what kind of support businesses need, and how best to provide it.”
To further scale outreach efforts, Gobind said, the Digital Ministry will collaborate with chambers of commerce, industry councils, and labour unions. “We are working with these partners as a key to understanding ground-level challenges and refining our strategies.”
Gobind acknowledged that financial barriers remain a concern for many SMEs, particularly when it comes to adopting costly new technologies. “We need to make sure the support is not just available, but also affordable and accessible,” he said.
