Gobind: MDEC offering RM1.5b in financial aid, but talent shortage hindering MSMEs from going digital
KUALA LUMPUR, March 25 -- Talent shortage is one of the major challenges faced by micro, small and medium enterprises (MSMEs) when trying to take their businesses online, said Digital Minister Gobind Singh today.
He said Putrajaya is now offering around RM1.5 billion in funds to help MSMEs digitise their business, but there is a lack of know-how to fully utilise the financial aid.
'Many business owners understand how the pandemic affected them, but they still haven't fully adapted to technology.
'The question is, why is there a lack of adoption, and how do we deal with it? One key issue we identified is a lack of talent,' he said during the Business Digitalisation Initiative event with Malaysian Digital Economy Corporation (MDEC) here.
Gobind said the government has seen businesses that adopt digital solutions report up to 30 per cent increase in productivity and income, but this potential remains unrealised.
The minister added that about 97 per cent of businesses in Malaysia fall under MSMEs, making the sector critical to the country's digital economy growth.
As the Malaysian Digital Economy Blueprint (2021-2030) plans to generate RM25.5 billion in income by 2025, he said agencies SME Corp and MDEC have ramped up training initiatives over the past four months on digital banking, e-commerce, and automation.
Gobind said one area of resistance among SMEs is e-invoicing, with many business owners citing high costs as a barrier to adoption.
He assured them that the government is working on cost-reduction measures, including a new programme offering free and low cost e-invoicing solutions.
With the government aiming for 25 per cent economic growth this year, Gobind said he hopes MSMEs can fully leverage digital tools for their businesses.
MDEC announced that the RM1.5 billion in funds is made possible through strategic public-private-partnerships among government agencies and supporting partners including financial institutions, digital banks, peer to peer (P2P) lending platforms and local service providers.
This fund aims to provide digital solutions for the MSMEs, while offering digital financing facilitation for the community's business operation needs.
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