GEORGE TOWN: Small and medium enterprises (SMEs) need to venture into e-commerce to counter the present stagnation in the market as the world evolves to embrace technology, said the Malaysia SME Media Group CEO Wayne Lim.
Lim, who is also the SME newsletter group chief editor, said that at present SMEs, particularly those of the micro to small scale cannot compete online with multinationals or government-linked companies.
“They cannot also compete with startups of whom many are well funded and can afford to sell things cheaper online. In terms of the economies of scale, the small businesses cannot adjust to the globalised age.”
Their customer base is fast eroding to fresher and dynamic new enterprises which use the online tool aggressively.
Many micro enterprises (MSMEs) have stayed away from e-commerce, but it is wrong as the world, particularly the younger generation has moved from traditional modes to digitalisation where everything can be sent to the doorsteps, he said.
With the formulation of an online platform of MSME to market their products and to also source for supplies, services and human capital, small businesses can go online through the portal of www.qu-exchange.com.
Lim said that the selling of nasi lemak can be done via e-commerce if the sellers profess the attitude of wanting to better their businesses.
Digitalisation also reduces congestion and allows for better understanding of the market dynamics, he added.
Meanwhile, SME Corp Malaysia will embark on a massive training drive to enable MSMEs to be equipped with the necessary skills in e-commerce.
All MSMEs would gain from the latest technology if they learn from these pro-grammes, said SME Corp Malaysia chairman Datuk Seri Syed Hussein Al Habshee.
Speaking at the 11th edition of the Malaysia SME@Congress recently, he said this move is necessary as the economy is moving towards digitalisation. By 2022, over 21% of the gross domestic product (GDP) would be digitalised against the current level of only 1%.
MSMEs, which essentially are involved in micro businesses with a fair share coming from semi to rural localities, contributed 38.3% to the country’s gross domestic product last year. The figure is projected to grow to 41% by 2020 as Malaysia intends to be among the top 25 countries in the world under the global entrepreneurship index compared with its 58th position at present.
MSMEs provide jobs for two-thirds of total workforce in the country.