While the on-going global COVID-19 pandemic has affected businesses across all sectors – with many predicted to go into insolvency due to their business nature – it has also paved the way for digital transformation as businesses are forced to modify their operations to cope with restricted movement and supply interruption.
Although the government has introduced a few stimulus packages to aid local SMEs, particularly those in the tourism, aviation, training and development, retail, and property industries, many are still struggling to adapt to these changes.
Among the initiatives provided by the government to drive Malaysia’s economic recovery include the RM1.2 billion PENJANA package which seeks to help the digitalisation of local businesses.
Additionally, under the Kita Prihatin Programme, the government has set aside RM600 million for the Special Prihatin Grant which is expected to benefit 200,000 micro entrepreneurs.
Thus, SMEs are forced to ramp up their digitalisation efforts in order to survive.