SME Go Digital Day: How Malaysian Businesses Can Drive Digital Growth

Stuck in an endless cycle of paperwork, Excel sheets, and manual tasks? You know technology could help, but the whole idea of “digital transformation” feels overwhelming, expensive, and frankly, exhausting.

If that sounds familiar, you’re not alone. Before the “SME Go Digital Day” event even started, attendees shared their biggest challenges. The top challenges weren’t about technology itself, but about people: negative mindsets, staff resistance, and unclear workflows. Much of this hesitation comes from fears of job loss, lack of training, and uncertainty about ROI.

Organised by the SME Association of Malaysia, the event was packed with honest conversations and practical advice from founders and experts on how to face these challenges head-on.

 

Digitalisation Starts With a Clear “Why”

Before spending a single ringgit on new software, there’s one question to ask: Why are you doing this? Jeffri Shahul Hamid, Founder of Weblite said it best:  

“Adopting tech simply because your competitor is doing it, it’s not going to work out.”

A strong ‘why’ often comes from necessity or crisis.

Joshua Liew, Founder of Espressolab, shared how the MCO nearly broke his business. Out of desperation, he posted a simple plea on social media: “Buy coffee from me.” The post went viral. 20,000 boxes sold in 7 days.

“That cashflow kept us alive through tough times in 2021. I didn’t choose to go digital, I was forced into it,” said Joshua.

But what happens when your ‘why’ isn’t a crisis, but a vision?

Giden Lim, Co-Founder of BloomThis, is proof of that. Back in 2009, while helping at his mom’s flower shop, he asked: “Why should people have to walk into a shop to buy flowers?” His first two digital attempts failed. But he kept going, launching BloomThis with a solid e-commerce setup and social media strategy.

By the time the pandemic hit in 2020, BloomThis was ready. Their sales soared, and they focused on scaling – from buying a five-story logistics building to creating their own delivery system for fresh flowers.

The lesson: Having a clear vision and sticking with it matters more than copying what others are doing.

Automate Your Accounts to Free Up Your Best People

Jeremy Chia of Chia, Ka & Partners, an accountant, shared a personal story of being “stuck in a factory till 3 in the morning” manually reconciling accounts. His message was straightforward: use digital tools to remove repetitive, time-consuming tasks.

Esther Li shared about the accounting software Xero, which support Malaysian E-invoicing compliance and integrate directly with major banks to automate daily transactions. This kind of automation reduces errors and frees teams to focus on higher-value work, like finding customers or improving services.

Jeremy proudly stated that during the pandemic, 95% of our clients survive because their digital records allowed them to get financial help quickly. His final point was powerful:

“If you can automate your book, you can collect money faster, make better decisions and leverage on a lot of things which is very important to scale your business,” said Jeremy. 

Access Funding More Easily

Worried about cash flow? Gadiy Lim, Strategic Alliance & Partnerships VP from Alliance Bank debunked several myths around SME financing in Malaysia. He revealed that banks have digitalised, offering collateral-free loans up to RM 500,000 for businesses as young as 6 months.

This echoes survey findings from Alliance Bank’s own customer base, where 68% of SMEs expect growth by 2025, but talent shortages and cash flow remain key challenges. A huge tip he shared is that Bank Negara Malaysia (BNM) provides an incentivised funding scheme with low interest rates for businesses undertaking digitalisation, including options like high tech green facility and slow carbon transition through ESG partnerships.

His golden rules for applying:

• Go direct to the bank: You don’t need a consultant (who will likely charge extra fees). Your bank’s relationship manager can guide you for free.
• Be completely transparent: “Be truthful,” he urged. “Tell us everything so we can advise you in the best way possible.”
• Keep your records clean: As Jeremy mentioned earlier, tidy and digitalised accounts make the process far smoother.

Building Relationships with Customers 

You spend so much effort getting leads. But what happens next? Muhajir Anuar, Mission Corresponder from Enginemailer, a Malaysian email marketing platform, pointed out a common blind spot: we neglect retention. This is a costly mistake. 

“Keeping a customer is 5x more cost-effective, and that repeat customers tend to spend 67% more and are more likely to refer their friends,” Muhajir explained.

His approach focuses on an automation framework covering the entire customer journey – Awareness, Consideration, Purchase, Retention, and Loyalty/Advocacy. By using tools like QR codes for real-time lead capture and instant database integration, businesses can automate follow-ups immediately. Why? Because, as he puts it, “people are forgetful.”

And for those who believe email is outdated, Muhajir offered a reminder:

“Your customers will engage when the content is relevant – especially when data-driven segmentation allows personalized messages based on location, events, or product interest.”

Empowering Your Team for Digitalisation

When adopting technology, don’t forget your greatest asset: your people. Paresh Subramaniyam from EngageLife began with a crucial reminder:

“Digital tools are only as productive as the people using them.”

He cautioned that in many companies, “60% of people are tired survivors who will never follow new initiatives unless their mindset shifts.” So how do you overcome that resistance?

Paresh’s advice: make adoption engaging and human. He shared an example of a company that boosted productivity by 23% – not with cash incentives, but with fun, non-monetary rewards like badges and bragging rights.

Another simple but powerful strategy is the buddy system. Trying to get your team to embrace a new process? Pair them up. Paresh found this approach to be “about 48% more effective,” because people are naturally motivated “not to disappoint others.”

To truly increase productivity, Paresh stressed the importance of upskilling.

“We should focus on an individual development plan that builds emotional intelligence (EQ), resilience, focus, energy management, and very importantly, character building.”

It’s a powerful reminder that leading change is less about the software and more about understanding, motivating, and supporting the very people you need to make it work.

The Ultimate Question: People or AI?

One of the liveliest discussions of the day was the panel on “Gen Z or GPT?” a question that perfectly sums up what many founders are asking: Should you invest in young, tech-savvy talent or in AI tools? 

The answer, it turns out, you need both.

Jeffri from Weblite put it bluntly: “Hiring a Gen Z employee gives you hands immediately, whereas implementing AI takes 3–6 months.” He added one of the most memorable lines of the day:

“If you cannot train a fresh grad or a Gen Z, you’re not going to be able to train a machine.”

He backed this up by sharing how a Gen Z intern he hired was able to handle international client production work, proving that the right hire can deliver real results from day one. He mentioned that Gen Zs are very good if you give them proper guidance. 

Joshua from Espressolab added another perspective, sharing how a Gen Z hire suggested offering coffee classes after noticing that “barista training is trending on Tiktok.” That kind of cultural awareness and real-time trend spotting is something no AI can replicate.

The Gen Z panelists, Aleef (a Data Science intern from MMU) and Widad (a Growth Marketer at Kabel), reinforced this mindset. They see AI not as a threat, but as a tool that amplifies human creativity and efficiency.

“We’re the bridge,” Aleef said. “We can help SMEs learn and implement these tools.”

“Working only with computers or relying too much on AI can feel suffocating. We still need human interaction,” added Widad.

As TK Choo from Kabel summed it up:

“The smartest companies are choosing a hybrid model — using tech to support people.”

Start Your Digital Journey Today

The biggest takeaway of the day: Don’t overcomplicate it. Start small.

You don’t need to rush out and buy a dozen AI systems. Take one small, practical step. Pick one thing. Maybe it’s setting up a proper cloud accounting system. Maybe it’s trying an email tool. Or maybe it’s hiring a sharp intern and tasking them with finding one manual process to automate.

Because, as the saying goes, “What you can’t track, you can’t improve.” Digital tools aren’t just shiny objects, they’re the foundation for measuring progress and adapting quickly.

And Dr. Chin Chee Seong, President of SME Association of Malaysia said: 

“No business can scale alone. We need to learn from each other, share what works, and build a strong ecosystem that lifts all of us up.”

By starting small, you’re not just “going digital” – you’re building a stronger, leaner, and more competitive business ready for whatever comes next.

If you’re a fast-growing business and want to understand how to adopt digital tools and hire the right talent to scale, get in touch with Kabel today or book a free consultation.