November-December. 2025 |
COLUMN
23 through coordinated efforts led by the Ministry of Digital and MDEC.
A key priority is the National AI Office( NAIO), which has been allocated funding to accelerate AI adoption and ensure that Malaysian businesses, including SMEs, remain competitive.
To ease financial constraints, the MSME Digital Grant MADANI provides matching support for essential tools such as e-Invoicing and digital marketing.
Rural inclusion is also receiving focused attention. The government has committed RM100 million to upgrade NADI Centres, transforming them into accessible digital entrepreneurship hubs for underserved communities.
At the same time, ecosystem support is being expanded through a larger Digital Content Fund( RM65 million) and the Malaysia Digital Acceleration Grant( MDAG), which aim to nurture local creative talent and strengthen the capacity of tech firms.
Together, these initiatives seek not only to broaden access but to ensure that the benefits of digitalisation reach SMEs across all regions and sectors( Ministry of Digital, 2024; MDEC, 2024).
DOUBLE-EDGED SWORD
While digital platforms enable SMEs to scale quickly, they can also create dependency. The rise of digital platforms such as e-commerce sites, payment gateways, and social media markets has enabled SMEs to scale quickly.
Yet these platforms come with fees, algorithm-driven visibility, and policies that SMEs have little power to influence. An SME may become dependent on a single platform for its sales.
If the algorithm changes, if advertising fees increase, or if a platform introduces new seller requirements, the SME’ s survival could be at risk. Digitalisation empowers, but it also concentrates power.
Platforms gain data, influence, and control; SMEs gain reach but risk losing autonomy. A more inclusive digital ecosystem must therefore balance opportunity with protections for small enterprises.
THE HUMAN SIDE
Successful digitalisation is not only about adopting software, but also about transforming human capability. For many Malaysian SMEs, the most significant barrier is not the cost of tools, but the lack of confidence in using them.
Digital literacy, problemsolving skills, and adaptability determine whether an SME can thrive in a digital economy.
Without a strong focus on upskilling owners and workers, particularly older entrepreneurs, rural communities, and microbusinesses, digitalisation efforts may remain superficial. Digitalisation must shift from an equipment-driven approach to a people-centred approach.
INCLUSIVE DIGITAL GROWTH
To ensure digitalisation benefits all Malaysian SMEs, collaboration is key:
■ The government must continue to reduce barriers and expand rural connectivity.
■ Technology providers must design solutions that are affordable and culturally meaningful for underserved groups.
■ Financial institutions must tailor products to the realities of micro-businesses.
■ SME associations must champion peer learning.
■ Local communities must support grassroots digital adoption.
This spirit of cooperation aligns with Islamic principles of mutual support, as reflected in the Qur’ anic reminder:
“… Cooperate in goodness and righteousness, and do not cooperate in sin and transgression. And be mindful of Allah. Surely Allah is severe in punishment.”( Quran, Al-Maidah, 5:2)
Digitalisation should not be an individual struggle; it should be a shared journey.
NEW METRIC OF DIGITAL SUCCESS
The future of Malaysia’ s SMEs in the digital economy will not be determined merely by how many adopt cloud systems, run e-commerce stores, or use digital marketing.
The accurate measure of progress lies in inclusivity. How many SMEs, across every State, income level, gender group, and sector, gain meaningful access to digital opportunities?
Digitalisation can be Malaysia’ s great economic equaliser, if its benefits reach all. But without deliberate inclusion strategies, it risks becoming a catalyst for new inequalities.
Malaysia now stands at a crossroads. The tools and opportunities exist, but so do the gaps. The challenge is not merely to digitalise SMEs, but to digitalise them fairly, wisely, and humanely. @ ND