A recent survey by Xero reveals that 81% of Malaysian Micro, Small, and Medium Enterprises (MSMEs) have integrated artificial intelligence (AI) into their operations, with many anticipating its standardisation by 2030. Despite this high adoption rate, a significant confidence gap persists, as 82% of these businesses express a need for further education to harness AI effectively.
The survey, which involved 1,033 Malaysian MSMEs, highlights that whilst AI is seen as a tool for enhancing efficiency, cost savings, and productivity, only 56% of respondents are familiar with its various business applications. Concerns over data privacy, security, and ethical issues like plagiarism are prevalent, with 68% advocating for stringent government regulation of AI in business.
Xero’s findings suggest a shift in MSME priorities, with a growing demand for training and advisory support over financial aid. This presents an opportunity for government, industry bodies, and technology partners to provide practical frameworks and training programmes to facilitate strategic AI use. Koren Wines, Managing Director of Xero Asia, emphasised the importance of closing the confidence gap to enable MSMEs to leverage AI for sustainable growth.
As Malaysia aims to become an AI-driven economy by 2030, the role of MSMEs—comprising over 96% of the nation’s businesses—will be crucial. The report underscores the need for a supportive ecosystem to ensure these enterprises can navigate the AI landscape confidently and contribute to the country’s economic ambitions.
