Malaysian Small Businesses Urged to Embrace Productivity-Enhancing Technologies for Sustainable Growth
KUALA LUMPUR, MALAYSIA – Innovation and the entrepreneurial spirit of young business owners are driving growth in Malaysia’s small business sector. However, this momentum has not yet translated into consistent improvements in overall business performance, as highlighted in CPA Australia’s latest findings from the Asia-Pacific Small Business Survey.
Declining Online Revenue and Digital Payment Usage
While approximately half of Malaysian small businesses reported enhanced profitability from technology investments over the past two years, a notable decline has been observed in the proportion of businesses generating over 10% of their revenue from online sales. This figure dropped from 74% in 2024 to 62% in 2025.
Additionally, the use of digital payment platforms has also seen a downturn. In 2025, 74% of small businesses received more than 10% of their sales through digital payment systems like GrabPay, Touch ‘n Go, and Boost, down from 78% in 2024.
Need for Deeper Technology Adoption
Priya Terumalay, CPA Australia’s Regional Head for Southeast Asia, emphasized that while government initiatives have facilitated technology adoption, they have not significantly encouraged the uptake of more transformative technologies. These include artificial intelligence, process automation, data analytics, and systems integration.
Terumalay noted that “technology investment remains concentrated in computer hardware and customer-facing functions like mobile apps and payments, while structural constraints continue to limit more transformative approaches.” She further stated that persistent cost pressures are compressing margins, indicating that policy priorities should focus on addressing these structural constraints. This includes reorienting digital support towards automation, systems integration, and data utilization, rather than providing short-term relief.
Cybersecurity Concerns
As small businesses invest in technology, it is crucial to incorporate adequate cybersecurity measures. In 2025, 35% of small businesses reported losing time or money due to cyber-attacks. Alarmingly, only 39% of these businesses reviewed their cybersecurity protections within a six-month period, marking the second lowest rate among the 11 markets surveyed.
Positive Business Sentiment Amid Challenges
Despite these challenges, sentiment regarding the Malaysian economy remains optimistic. A significant 75% of small businesses expect economic growth in 2026, while 77% anticipate their own business growth this year. However, access to effective financing, particularly for investment, is deemed essential for enabling deeper digital transformation and enhancing resilience.
Terumalay highlighted the importance of this access, particularly for outward-oriented small businesses that are navigating global supply chain pressures and trade policy uncertainties. These factors could significantly impact growth, especially for firms integrated into regional supply chains.
About the Survey
The 17th annual Asia-Pacific Small Business Survey conducted by CPA Australia involved small business owners and senior managers during November and December 2025. The survey aimed to identify the characteristics of successful small businesses across the region, collecting data from 4,166 small businesses across 11 markets. Since its inception in 2009, the survey has engaged over 50,000 small businesses throughout the Asia-Pacific region, including Australia, Mainland China, Hong Kong, India, Indonesia, Malaysia, New Zealand, Philippines, Singapore, Taiwan, and Vietnam.
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Published on 2026-04-07 02:07:00 • By the Editorial Desk
