Punching Above Their Digital Weight: Exabytes Shares Optimism Towards MSME’s RM44 Billion Allocation for a Better Cyberspace Landscape

In the heart of Southeast Asia, Malaysia is on the brink of a digital renaissance, with RM44 billion allocated in Budget 2024 to uplift the country’s Micro, Small and Medium Enterprises (MSMEs).

With this windfall, MSMEs are not just expected to survive – they’re poised to thrive in a digital-first world! But let’s be real; jumping on the digital bandwagon isn’t as easy as it sounds. Hence, Data & Storage Asia (DSA) sat down with Chan Kee Siak, Founder and CEO of Exabytes, who shared his insights and roadmaps to digital success.

Digital Transformation: The Lifeline for MSMEs

Chan is confident that the massive budget allocation will transform Malaysia’s MSMEs into global contenders. “The RM44 billion is set to propel Malaysia towards a digitally-driven, high-income economy,” says Chan. But this isn’t just about throwing money at the problem – it’s about smart investments in people, processes, and technology.

“People are the cornerstone,” Chan explains, emphasising that the development of digital talent is key. Without skilled resources, even the best-laid digital transformation plans will falter. The process is equally important – adopting best practices and complying with regulatory requirements will not only enhance sustainability but also mitigate cybersecurity risks.

And of course, the right technology aligned with clear business objectives is just as important. This is where digital solutions like Artificial Intelligence (AI) and cloud computing come into play, offering MSMEs the tools they need to solve customer problems and ensure long-term success.

By enhancing product offerings and exploring new markets through digital technologies, MSMEs will be better positioned to compete globally and withstand economic disruptions. Malaysian businesses can better weather economic disruptions and emerge stronger!

Artificial Intelligence: The Game Changer

Digital solutions, particularly AI, are no longer just buzzwords – they’re game changers!

Chan Kee Siak highlighted how AI is revolutionising customer service and operational efficiency, as such:

• Customer Service: AI chatbots and virtual assistants offer 24/7 support for basic inquiries, reducing wait times and ensuring swift resolutions. Complex issues can be escalated to human agents, blending efficiency with personalised care.
• Operational Efficiency: AI automates routine tasks, reducing the need for manual work. This allows businesses to focus on strategic activities, enhancing overall efficiency.
• Business Intelligence: Advanced analytics provided by AI help SMEs uncover trends, predict market changes, and make informed strategic decisions.

For many SMEs, this has slashed operational costs by over 25% and boosted customer satisfaction by 35%! Chan also emphasised that AI can even optimise operations in industries. For instance, AI can help businesses to manufacture by analysing historical data to predict trends and improve Overall Equipment Effectiveness (OEE).

With these being said, for those who are still sceptical about AI’s role in the future of MSMEs, it’s time to rethink!

AI being an entity that could jeopardise your operational planning is merely a myth. It’s a strategic tool that’s enabling businesses to perform much more efficient strategic initiatives.

With AI, SMEs are not just keeping up – they’re setting the pace!

Cybersecurity: A Crucial Necessity

As much as it’s encouraging to see the shift of technological wave within the operational environment of businesses, it can result in higher risks of cyber threats and vulnerabilities as well!

Phishing, ransomware, and DDoS attacks are just the tip of the iceberg. With various threats looming above the realm of cyberspace realm, Chan stresses the importance of robust cybersecurity measures, such as:

• Zero-Trust Framework: Enforces strict access controls and assumes no one inside the network perimeter is automatically trustworthy.
• 24/7 Monitoring: Continuous monitoring and response services detect and address threats in real time.
• Backup and Disaster Recovery: Comprehensive plans minimise downtime and data loss during breaches.

Chan also advises that cybersecurity should be seen as a continuous process rather than a one-time fix. “It’s far more cost-effective to prevent breaches than to deal with their aftermath,” he says.

For many MSMEs, the cost of hiring a full-time cybersecurity team is prohibitive. This is where third-party providers like Exabytes come in, offering managed services that provide advanced protection without the overhead. In today’s digital landscape, investing in cybersecurity isn’t optional – it’s critical!

Breaking the Glass Ceiling: What Can Digital Transformation Offer to the Table?

In terms of digitalising their business, the biggest question that looms over the heads of MSMEs is; where do we even begin?

With a limited online presence, inadequate IT infrastructure, and budget constraints, digital transformation has become a very hard nut for them to crack open. Hence, resorting to external services that can provide digital transformation to businesses should be a good step for MSMEs to move towards that direction.

Chan shared that Exabytes’ portfolios showcase what digital transformation can offer to businesses, particularly SMEs. He emphasised that these tailored solutions have the potential to empower MSMEs to develop beyond further their limits​:

• Workload Migration: Transitioning remittance service companies’ workloads from traditional on-premises servers to cloud platforms, boosting scalability and security.
• IoT Solutions: Deployed IoT solutions for manufacturers and equipment rental services, enhancing OEE and enabling real-time asset tracking.
• AI-Driven Data Analysis: Leveraging AI to examine historical business data for a major retail chain, leading to improved pricing strategies and better-informed business decisions.
• E-Commerce Cloud Migration: Shifting e-commerce operations to the AWS Cloud platform, using advanced cloud technologies to drive growth in Malaysia and across the region.

Exabytes Bets Boldly: MSMEs to Seize the Digital Future

Despite the obstacles, Malaysia’s SMEs are at a crossroads. The RM44 billion budget allocation represents a golden opportunity, but it’s up to these businesses to seize it. The future isn’t just about survival; it’s about thriving in a digital world that’s moving at lightning speed!

Chan’s vision is clear; to empower MSMEs with tailored digital solutions that address their unique challenges. From scalable hosting to advanced AI-driven analytics. Just like many other digitalisation outsourcing outlets out there, Exabytes aims to support businesses in navigating the digital transformation journey!

But let’s not sugarcoat it – there’s still a long way to go. Malaysia’s digital landscape has been slow to evolve.

A study indicates that only one in 20 SMEs in Malaysia has approached digital transformation strategies, and fewer than one in 15 companies have a team specifically focused on digital strategy. This fund injection, while substantial, is just the beginning. The success of this initiative will depend on how well MSMEs can adapt, innovate and leverage these funds to truly transform their operations.

The ball is in the court of Malaysia’s SMEs – will they rise to the occasion and lead the change in a tech-driven future, or will they be swept away by the tides of digital change?

The clock is ticking, and the digital world waits for no one.