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New Straits Times
13-05-2025
- Business
- New Straits Times
BDI's R1.5b must be catalyst, not a wastage
LETTERS: The RM1.5 billion Business Digitalisation Initiative (BDI) by the Malaysia Digital Economy Corporation (MDEC) stands as a transformative opportunity to propel Malaysia's micro, small, and medium enterprises (MSMEs) into the digital era. However, for this ambitious investment to truly create a digitised society and deliver long-term national benefits, it must be executed in an organised and systematic business manner. Malaysia's MSMEs are vital to the nation's economy, yet over 60 per cent remain at a basic level of digital adoption, with most lacking advanced technological integration. While the BDI's scale and intent are commendable, simply distributing funds or focusing on technology adoption for its own sake risks inefficiency and wasted potential. A technology-first approach, without clear business objectives, often leads to operational silos and mismatched solutions that do not address the real challenges MSMEs face-market access, customer acquisition, and sustainable revenue growth. Technology should not be seen as an end goal, but as an enabler of business transformation. Its true value emerges when it is embedded within comprehensive business strategies that solve pressing problems and unlock new opportunities. For MSMEs, this means leveraging digital tools to streamline operations, meet customer expectations, and integrate into broader supply chains-delivering on time, at optimal cost, and with high quality. Many digitalisation efforts focus on surface-level solutions like e-commerce platforms or online marketing, often overlooking the fundamentals of business process improvement and capacity building. When digital initiatives are driven by technical features rather than actual business needs, MSMEs risk adopting systems that look advanced but fail to generate meaningful impact. To ensure the RM1.5 billion achieves its intended outcomes, the grant must be administered through a phased, business-centric framework, with the following core components identified: Phase 1: Diagnostics and Targeting: Conduct nationwide assessments to identify MSMEs' core challenges, especially in customer acquisition and market access. Target strategic sectors and map out process improvements, capacity building, and regulatory barriers that hinder MSME participation in larger supply chains. Phase 2: Tailored Digital Solutions: Allocate funding only where MSMEs have clearly defined business challenges that digital solutions can address. Enhance grant mechanisms to support meaningful participation in digital marketplaces, including customer support, social media integration, and B2B supply chain systems. Phase 3: Measured, Scalable Implementation: Roll out sector-specific, incremental digital adoption based on MSME needs. Establish robust monitoring systems to track not just adoption rates, but actual business outcomes-growth, productivity, and competitiveness. The BDI's strength lies in its "whole-of-nation" approach, leveraging public-private partnerships with financial institutions, digital banks, P2P lenders, and local service providers. This collaborative model ensures MSMEs have access to comprehensive support-funding, digital tools, and capacity-building initiatives-tailored to their transformation journey. Accountability is crucial. Every ringgit must be tied to measurable improvements in business growth, market access, and long-term competitiveness. Transparent metrics and ongoing evaluation will ensure the initiative remains focused on real outcomes, not just digital adoption statistics. A blanket, unsystematic approach to digitalisation risks squandering resources and missing the opportunity for real economic transformation, Malaysia is always known for this kind of wastages. Thus, the BDI must be more than a subsidy scheme; it must be a catalyst for sustainable, inclusive growth. By deploying the RM1.5 billion in a structured, business-driven manner, Malaysia can empower its MSMEs to thrive in the digital economy and lay the foundation for a truly digitised society-one where technology serves as a powerful enabler of prosperity for all. In summary, the RM1.5 billion grant must be managed with discipline, guided by business needs, and anchored in accountability. Only then can it deliver the long-term vision of a dynamic, competitive, and digitised Malaysia. Managing Director
The Sun
06-05-2025
- Business
- The Sun
Malaysian SMEs still lagging behind in digitalisation journey
KUALA LUMPUR: Most Malaysian small and medium enterprises (SMEs) are still trailing behind larger enterprises in their digitalisation journey, said Digital Minister, Gobind Singh Deo. He said that to address the issue, the ministry is working hard through initiatives like the Business Digitalisation Initiative (BDI), recently launched by the Malaysia Digital Economy Corporation, to help SMEs accelerate the adoption of digital technology in their operations. 'The MADANI Government has also set aside RM50 million for digital matching grants for SMEs and digital grants for vendors. 'Global technology companies based in Malaysia, such as Microsoft and Alibaba Cloud, are working closely with the government to assist SMEs through multiple programmes,' he said in his keynote address at the CTOS SME Biz Day 2025 today. Explaining further, Gobind said the government is also committed to ensuring that SMEs are prioritised in navigating current geopolitical challenges, with funds allocated for this purpose, as announced by Prime Minister Datuk Seri Anwar Ibrahim in Parliament yesterday. He said the government's initiatives have always been designed to provide SMEs with the resources, knowledge, and support they need to navigate the digital landscape effectively. 'Our vision is to create a digitally empowered Malaysia – where every business, regardless of size, can thrive in our national digital ecosystem. 'We are committed to fostering an environment that supports innovation, digital adoption, and ultimately, building up Malaysia as a strong digital nation,' he added. Yesterday, Anwar announced that the government has agreed to increase government guarantees under the Business Financing Guarantee Scheme by RM1 billion to assist SMEs affected by the recent United States (US) tariff announcement in securing loans from commercial banks. Additionally, another RM50 million will be allocated to the Malaysia External Trade Development Corporation (MATRADE) to expedite efforts for SMEs to explore new markets through participation in international trade expos and exhibitions, as well as facilitating business matching with foreign buyers.
The Sun
06-05-2025
- Business
- The Sun
Malaysian SMEs lagging in digital transformation
KUALA LUMPUR: Most Malaysian small and medium enterprises (SMEs) are still trailing behind larger enterprises in their digitalisation journey, said Digital Minister, Gobind Singh Deo. He said that to address the issue, the ministry is working hard through initiatives like the Business Digitalisation Initiative (BDI), recently launched by the Malaysia Digital Economy Corporation, to help SMEs accelerate the adoption of digital technology in their operations. 'The MADANI Government has also set aside RM50 million for digital matching grants for SMEs and digital grants for vendors. 'Global technology companies based in Malaysia, such as Microsoft and Alibaba Cloud, are working closely with the government to assist SMEs through multiple programmes,' he said in his keynote address at the CTOS SME Biz Day 2025 today. Explaining further, Gobind said the government is also committed to ensuring that SMEs are prioritised in navigating current geopolitical challenges, with funds allocated for this purpose, as announced by Prime Minister Datuk Seri Anwar Ibrahim in Parliament yesterday. He said the government's initiatives have always been designed to provide SMEs with the resources, knowledge, and support they need to navigate the digital landscape effectively. 'Our vision is to create a digitally empowered Malaysia – where every business, regardless of size, can thrive in our national digital ecosystem. 'We are committed to fostering an environment that supports innovation, digital adoption, and ultimately, building up Malaysia as a strong digital nation,' he added. Yesterday, Anwar announced that the government has agreed to increase government guarantees under the Business Financing Guarantee Scheme by RM1 billion to assist SMEs affected by the recent United States (US) tariff announcement in securing loans from commercial banks. Additionally, another RM50 million will be allocated to the Malaysia External Trade Development Corporation (MATRADE) to expedite efforts for SMEs to explore new markets through participation in international trade expos and exhibitions, as well as facilitating business matching with foreign buyers.
New Straits Times
06-05-2025
- Business
- New Straits Times
Malaysian SMEs stil lagging behind in digitalisation journey: Gobind
KUALA LUMPUR: Most Malaysian small and medium enterprises (SMEs) are still trailing behind larger enterprises in their digitalisation journey, said Digital Minister, Gobind Singh Deo. He said that to address the issue, the ministry is working hard through initiatives like the Business Digitalisation Initiative (BDI), recently launched by the Malaysia Digital Economy Corporation, to help SMEs accelerate the adoption of digital technology in their operations. "The MADANI Government has also set aside RM50 million for digital matching grants for SMEs and digital grants for vendors. "Global technology companies based in Malaysia, such as Microsoft and Alibaba Cloud, are working closely with the government to assist SMEs through multiple programmes," he said in his keynote address at the CTOS SME Biz Day 2025 today. Explaining further, Gobind said the government is also committed to ensuring that SMEs are prioritised in navigating current geopolitical challenges, with funds allocated for this purpose, as announced by Prime Minister Datuk Seri Anwar Ibrahim in Parliament yesterday. He said the government's initiatives have always been designed to provide SMEs with the resources, knowledge, and support they need to navigate the digital landscape effectively. "Our vision is to create a digitally empowered Malaysia – where every business, regardless of size, can thrive in our national digital ecosystem. "We are committed to fostering an environment that supports innovation, digital adoption, and ultimately, building up Malaysia as a strong digital nation," he added. Yesterday, Anwar announced that the government has agreed to increase government guarantees under the Business Financing Guarantee Scheme by RM1 billion to assist SMEs affected by the recent United States (US) tariff announcement in securing loans from commercial banks. Additionally, another RM50 million will be allocated to the Malaysia External Trade Development Corporation (MATRADE) to expedite efforts for SMEs to explore new markets through participation in international trade expos and exhibitions, as well as facilitating business matching with foreign buyers.
Yahoo
25-03-2025
- Business
- Yahoo
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.
