The whitepaper “Accelerating Malaysian Digital SMEs: Escaping The Computerisation Trap – Overcoming the Digitalisation Chasm of Malaysian SMEs” reported on how Malaysian SMEs adapted to the changing digitalisation landscape. Overall it is found that many Malaysian SMEs are trapped in the Computerisation phase in making their way fully digital. Computerisation here is defined as using computers and digital equipment per se without changing the business processes and embark the full potential of the innovation, data, process and connectivity of the new technology platform. The comprehensive study cuts across all SMEs sectors of Services, Manufacturing, Construction, Agriculture & Mining. Further through all business sizes (Micro, Small and Medium) and regions in Malaysia with a total respondent of 2,033 SMEs. Based on the study the SMEs can be categorised in form of Leaders (investing in new technology), Followers (investing only when technology are matured and commonly used), and Laggards (only to use new technology when its being pushed) in term of their adaptation to technology. Where in Malaysia, it is exciting to know that across all sectors of Services, Manufacturing, Construction and Agriculture, more than 50% are in the Leaders group, where Agriculture & Mining showed positive high 67% in the Leaders segment, highlighting the potential of strong digital transformation for our Agriculture sector in the near future.
Analysis
Further analysis of the data shown that there are significant increases in productivity when the SMEs ventured into 1. Data analytics (60% increments), 2. e-businesses (27% increments), and 3. Marketing on social media (26% increments). Certainly, it shown that the higher the technology adopted, the higher the productivity increased. Top 5 key challenges faced by the SMEs in moving from Computerisation to Digitalisation are 1. Financing and funding, 2. Technology, 3. Skillsets, 4. Business plan and strategy, and 5. Networking. Where from the study, it seems that 60% high of the SMEs are not aware of the current financing and funding opportunities available from various government agencies.
Recommendation
In further accelerating the current SMEs technology adaptation, three-pronged approach is recommended which are innovate, facilitate, and accelerate. Innovate focused on educating and changing the mindset of SMEs on technology especially moving them from the Computerisation into Digitalisation phase. Facilitate focused on bringing forward the prepared SMEs through transformation strategies, financing options, and supports for their technology embarkment. Together, the third pronged, Accelerate provides the SMEs with foundations of infrastructure such as fast broadband access and info-structure platforms such as cloud services for the SMEs to grow fast with the latest technology innovations.
University Consortium – The University Consortium is a consortium formed under the advisory of Industry Relations Division of Ministry of Education (Higher Education Department) (MoE) in 2018 as academic and research consultant team to undertake research and development consultancy for industry. The university consortium, advised by Prof. Dr. Arham Abdullah (MoE) is consists of seven experts from six universities lead by Dr. Farhan Mohamed, from Universiti Teknologi Malaysia (UTM), followed by Dr. Fakhrul Zaman Rokhani from Universiti Putra Malaysia (UPM), Assoc. Prof. Dr. Sobri Don @ A Wahab from Universiti Utara Malaysia (UUM), Assoc. Prof. Dr. Lam Su Shiung from Universiti Malaysia Terengganu (UMT), Dr. Mohd Nazim Jambli from Universiti Malaysia Sarawak (UNIMAS) and Dr. Bonaventure Boniface from Universiti Malaysia Sabah (UMS).
Full text can be downloaded at: https://www.huawei.com/minisite/accelerating-malaysia-digital-smes/index.html
