Small-medium enterprises (SMEs) have long been an integral part of Malaysia’s economic development and are expected to assume a greater role, not only as an enabler but also as a key driver of economic growth.
According to Small and Medium Enterprises Corporation Malaysia (SME Corp), SMEs represent more than 1.2 million or 97.4% of total business establishments in Malaysia. This community continues to contribute significantly to the economy, estimated at some 37.4% of Gross Domestic Products (GDP) and 11.7% of total exports and 47.8% of total employment in 2021.
Ultimately, to stay competitive in the digital economy with its multifaceted landscape, adaptability and agility become essential imperatives for SMEs.
According to IBM Malaysia managing director and technology leader Catherine Lian, SMEs need to look at a wide range of aspects concerning their business models to identify opportunities and challenges in a constantly changing landscape. This involves technology adoption according to their capacity, business processes and human resources.
“The importance of SMEs engaging with technology partners who can provide access to essential technologies and robust management tools is critical to not just ‘survive’ but to ‘thrive’ in the current economic environment,” said Catherine.
“Consequently, the adoption of cloud technologies become central for organisations in developing new digitally driven business models, and flexibility to run their critical workloads across any platform without having to rewrite everything that they already have. This is where hybrid cloud approach comes into play.”
Hybrid cloud caters to businesses’ unique IT infrastructure needs, whether it be a public cloud, a private cloud or on-premises. It offers orchestration among them to create a single, secure, flexible and efficient cloud infrastructure for running computing workloads.
A shining example is Safeguards CS Sdn Bhd, a new financial services industry (FSI) start-up based in Malaysia that recently implemented Power Virtual Server (PVS) on IBM Cloud for payment workloads.
As a new start-up, Safeguards CS has aspirations to be agile and flexible. By leveraging IBM PVS, it meets Safeguards CS business needs, enhances customer experience and maximises business value.
The implementation of PVS also empowers Safeguards CS to quickly scale its operations, access technical talent as needed and respond efficiently to future growth.
“As we look forward to the future, it is clear that the integration of advanced technologies such as hybrid cloud and artificial intelligence (AI) will only become more vital for SMEs,” said Catherine.
“By adopting these technologies, SMEs can significantly enhance their productivity, streamline their operations, and ultimately, deliver value to their customers. The partnership between IBM and SMEs aims to harness this potential, empowering them with the technological tools and expertise necessary to make this vision a reality.”
The evolution of Malaysia’s digital economy has been undeniably shaped by the SME sector’s growing affinity for cloud adoption. As this trend continues, one thing is for sure: SMEs’ future is looking ‘cloudier’ than ever – and that’s a good thing for Malaysia.
