Rebecca PY Malaysian SMEs are actively investing in technology, but gains in online sales and digital payments have declined, highlighting gaps in deeper digital transformation. Despite this, business confidence remains strong, with most expecting growth in 2026.
MALAYSIA, 8 APRIL 2026 – Malaysian small businesses continue to adopt innovation and technology at pace, yet these efforts are not consistently translating into long-term performance gains, according to CPA Australia’s latest Asia-Pacific Small Business Survey.
The findings reveal that while 50 percent of small businesses reported improved profitability from technology investments over the past two years, key digital performance indicators have declined. The proportion of businesses generating more than 10 percent of revenue from online sales dropped from 74 percent in 2024 to 62 percent in 2025. Similarly, digital payment adoption saw a dip, with 74 percent of businesses receiving over 10 percent of sales through platforms such as GrabPay, Touch ‘n Go and Boost, compared to 78 percent the previous year.
CPA Australia’s Southeast Asia Regional Head, Priya Terumalay, noted that although government initiatives have supported digital adoption, they have yet to drive deeper transformation. Investments remain largely focused on hardware and customer-facing tools like mobile apps and payment systems, rather than advanced technologies such as artificial intelligence, automation, data analytics and system integration.
She added that persistent cost pressures continue to squeeze margins, highlighting the need for policy reforms that address structural barriers. Greater emphasis on automation, integrated systems and data-driven decision-making could help businesses achieve more sustainable productivity gains.
Cybersecurity also emerged as a growing concern, with 35 percent of small businesses reporting losses in time or money due to cyber-attacks in 2025. Despite this, only 39 percent conducted cybersecurity reviews within a six-month period, placing Malaysia among the lowest in the region for proactive cyber risk management.
Despite these challenges, business sentiment remains optimistic. About 75 percent of small businesses expect the Malaysian economy to grow in 2026, while 77 percent anticipate expansion in their own operations. However, improved access to financing—particularly for investment in advanced technologies—will be critical to enabling deeper digital transformation and strengthening resilience amid global economic uncertainties.