SME Corp Strengthens Digital Transformation Drive to Boost MSME Competitiveness
JOHOR BAHRU, May 1 — SME Corporation Malaysia is intensifying efforts to transform micro, small and medium enterprises (MSMEs) by prioritising digitalisation and automation under its Business Strategic Plan (BSP) 2022–2030.
Chief executive officer Rizal Nainy said the initiative is essential to improving productivity and ensuring MSMEs remain competitive in an increasingly technology-driven economy.
He noted that while awareness of digitalisation is growing, actual implementation remains uneven across the sector.
One of the key barriers is the high upfront cost of adopting digital technologies, which many businesses still view as a financial burden rather than a strategic investment.
“Many MSMEs still perceive digitalisation as an added cost instead of a long-term value driver,” he said.
Another major challenge is the shortage of digital skills within the workforce.
MSMEs often struggle to implement technology-based solutions such as ICT systems, data analytics and digital marketing due to limited expertise.
They also face difficulties in attracting skilled professionals, as larger companies typically offer better resources and opportunities.
Despite these constraints, digital adoption among MSMEs in Johor has shown encouraging progress.
Data from the Department of Statistics Malaysia Economic Census 2023 indicates that computer usage reached 97.6 per cent, while internet usage stood at 97.3 per cent.
Website adoption has also increased to 79 per cent, reflecting efforts by businesses to strengthen their online presence.
In the e-commerce sector, 4,460 MSMEs conducted online transactions in 2022, up from 3,212 in 2015.
E-commerce revenue reached RM20.8 billion, with an average annual growth rate of 10.1 per cent, indicating rising engagement with the digital economy.
SME Corp emphasised that digital transformation is no longer optional but necessary for MSMEs to stay relevant in a rapidly evolving market environment.
Through the BSP 2022–2030, the agency aims to accelerate digital adoption and provide broader support to help MSMEs compete both locally and globally.
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