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‘Half of Malaysia’s SMEs not digitally ready’

KUALA LUMPUR: Digital transformation remains a challenge for most Malaysian small- and medium-sized enterprises (SMEs), said Siemens Malaysia Sdn Bhd president and chief executive officer Adam Yee.

According to Siemens Malaysia’s findings, 50 per cent of SMEs are not prepared to adopt the new normal of working from home as they are lagging in terms of infrastructure and the system to enable their staff to do so.

Yee said Covid-19 had pushed SMEs to adopt digitalisation to ease the impact of the pandemic on business operations to ensure continuity and survival.

“The pandemic is forcing most SMEs to adopt to digital business requirements for their operations and during the Movement Control Order.

“There are three factors hindering SMEs to move their businesses digitally — the misconception of high cost when adopting technology, lack of understanding of digital technology, as well as shortage of digital talent in the workforce,” he told the New Straits Times recently.

Therefore, Siemens, with the Malaysia Digital Economy Corporation, has been conducting the Digital Transformation Acceleration Programme. The company has been appointed as digital transformation labs partner to assist Malaysian companies with digital transformation plans.

Yee said under the programme, Siemens was helping companies identify their business plans using specific methodologies to brainstorm on new ideas, design new business models, develop new products and technology designs, and pilot the implementation plan.

He said when Siemens started assessing the digital readiness of companies, it found that SMEs were unwilling to invest for digital purposes.

Yee said it was important for Siemens, under the programme, to educate and advise SMEs about gains they could achieve through digital transformation.

“SMEs have to start to think what their journey entails or what their goals are to be competitive in the market.”

Source: NST