SMEs in Malaysia to invest more in tech to drive performance

June 6, 2018

KUCHING: Small and medium enterprises (SMEs) in Malaysia plan to invest more in technology in order to succeed under increasingly challenging conditions, according to the findings of the Asean SME Transformation Study by United Overseas Bank (UOB) and Dun & Bradstreet.The survey found that 65 per cent of Malaysia's SMEs will focus their investments on technology over other fixed assets in 2018 to drive business performance and remain competitive.This echoes the direction of Asean SMEs where three in five (60 per cent) prefer technology over investments in assets such as factories and machinery.A majority (78 per cent) of Malaysia's SMEs surveyed also say they would invest specifically in software such as improving their websites and creating mobile apps.They believe such innovations would enable them to create better customer experience and increase customer loyalty.Hardware and infrastructure investments rank second for SMEs in Malaysia (77 per cent) and across the region (65 per cent)."While SMEs see the need to innovate, they have also been cautious about adopting cutting-edge applications, relying instead on current tools such as licensed software, customer relationship management, and content and database management.