13MP: Digitalisation empowers MSME to face evolving business landscape, market challenges

The Sun

5 days ago

PUTRAJAYA: Digitalisation is increasingly recognised as the key to empowering micro, small, and medium enterprises (MSMEs) to become more efficient, competitive, and sustainable in the long run, hence the emphasis clearly outlined in the 13th Malaysia Plan (13MP).
No longer a matter of choice, digital adoption has become a strategic necessity to ensure the survival and growth of MSMEs, especially amid rapidly evolving business landscapes and market challenges.
President of the Malay Businessmen and Industrialists Association of Malaysia (PERDASAMA), Mohd Azamanizam Baharon, told Bernama that digital technologies have had a significant impact in helping MSMEs streamline their daily operations more efficiently and effectively.
'Digital tools such as point-of-sale (POS) systems, automated accounting, cloud-based inventory management, and customer relationship management (CRM) applications have enabled MSMEs to manage their operations faster, more systematically, and with greater precision,' he said.
In fact, he said digital platforms like Shopee, Lazada, TikTok Shop, and social media channels such as Instagram and Facebook have allowed MSMEs to market their products and services to a much broader audience, unbounded by geography.
'These platforms also provide access to user data, market trends, and customer feedback, enabling entrepreneurs to tailor their offerings more strategically. MSMEs are no longer competing solely in local markets, they now have opportunities to break into regional and global arenas,' Azamanizam explained.
When asked how digitalisation helps reduce operational costs, he said automation cuts down on labour needs, optimises logistics, and improves inventory monitoring.
'For example, digital invoicing and e-payment solutions save time and money on printing, postage, and manual cash handling.
'Digital marketing investments are also far more cost-effective than traditional advertising. MSMEs can further tap into technologies like artificial intelligence (AI) and data analytics to forecast market demand and avoid resource wastage,' he explained.
According to the 13MP document, MSMEs play a critical role in driving the country's socioeconomic development, and are central to achieving the target of increasing MSMEs' contribution to Malaysia's GDP by 2030.
Under the 13MP, Malaysia aims to create 700,000 new jobs in the manufacturing sector and an additional 500,000 careers in the digital economy, reflecting the government's digital-first agenda.
The plan focuses on three key policies, one of which includes enhancing overall economic complexity to create value across all sectors, with digitalisation and advanced technologies, particularly AI, positioned as the core drivers.
Meanwhile, Azlan Zainal Abidin, chief executive officer of digital solutions company Awantec, described digital transformation as a primary catalyst for MSME growth.
He said that the adoption of cloud computing and AI allows MSMEs to access sophisticated digital tools without heavy capital investment.
'With cloud-based solutions, MSMEs can leverage cutting-edge technologies through affordable subscriptions. This enables them to scale operations more rapidly and efficiently, with e-invoicing being one such example,' he said.
The 13MP was tabled in Parliament by Prime Minister Datuk Seri Anwar Ibrahim on July 31. - Bernama