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SME Corp Empowers Digitalisation, Automation Of MSMEs

Kuala lumpur: Digitalisation and automation of micro, small, and medium enterprises (MSMEs) have been identified as one of the five key focus areas in the Business Strategic Plan (BSP) 2022-2030 to accelerate the adoption of digital technology and improve productivity and operational efficiency. SME Corporation Malaysia (SME Corp) chief executive officer Rizal Nainy emphasized the significance of this initiative, noting the persistent challenges MSMEs face in digitalisation efforts, particularly due to cost constraints and a lack of expertise within the industry. According to BERNAMA News Agency, cost remains a substantial barrier as the initial investment required for digitalisation is perceived as high and often beyond the financial capacity of some MSMEs. Rizal mentioned that MSMEs often consider digitalisation an additional expense rather than a strategic investment, especially when the return on investment (ROI) is not immediately apparent. The lack of expertise further complicates the situation, with a noticeable gap in knowledge and digital skills among the workforce, making it difficult for MSMEs to implement technology-based projects such as ICT, data analysis, and digital marketing. Rizal highlighted that in Johor, the MSME digitalisation level shows positive development according to the 2023 Economic Census by the Department of Statistics Malaysia (DOSM). The census reported high computer usage at 97.6 percent, internet usage at 97.3 percent, and website usage at 79.0 percent in 2022. Furthermore, he indicated that e-commerce activities have seen significant growth, with 4,460 MSMEs in the state engaging in transactions in 2022, up from 3,212 in 2015. E-commerce revenue reached RM20.8 billion in 2022, with an average annual growth of 10.1 percent, highlighting increased awareness of digitalisation's importance among MSMEs.

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