PETALING JAYA: Digitalisation can provide Malaysian micro, small and medium enterprises (MSMEs) a great opportunity to tap into the booming Asean market of nearly 700 million people, says Digital Minister Gobind Singh Deo (pic).
“As businesses become more productive and efficient, they can then grow and reach new markets,” said Gobind, adding that this is beneficial when the Asean Digital Economy Framework Agreement (Defa) comes into effect.
It is expected that MSMEs could stand to benefit from the estimated US$2 trillion (RM8.84 trillion) economic value generated by Defa by 2030.
However, a barrier still exists with more than 60% of MSMEs yet to adopt digital technology or solutions effectively, according to a study by Malaysia Digital Economy Corporation (MDEC).
Gobind said the reasons include a lack of awareness, insufficient funding, and for some, the absence of a clear business case for digitalisation.
To address these issues, Gobind said the ministry has engaged stakeholders, including government agencies, industry experts, solution providers and chambers of commerce, to develop a strategic framework guiding MSME digitalisation efforts.
He explained that the framework will be used to develop targeted solutions.
“There is no one-size-fits-all approach to address digitalisation among MSMEs.”
Gobind outlined the three main components of the framework, which at the first level would evaluate an MSME’s level of digitalisation through a Digital Maturity Assessment (DMA).
“The DMA will provide specific insights and information on the areas that an MSME needs to consider to move up from their current level.
“This assessment will also help to match and recommend to MSMEs the second component, which is a targeted ‘Digital Adoption Toolkit’.
“This toolkit consists of technologies and solutions to digitalise business processes within the company, as well as to access financing to enable their digitalisation efforts.”
In the last stage of the framework, Gobind said MDEC will provide the necessary Tech Business Advisory to assist MSMEs with emerging and disruptive digital technologies like artificial intelligence and blockchain.
Gobind said MDEC will also work with its Global Acceleration and Innovation Network companies and international cloud service providers to develop cost-competitive solutions.
“The ministry understands the importance of having the right talent in place. To that end, MDEC is also putting together programmes to help with upskilling and reskilling of manpower.”
