KUALA LUMPUR — Small and medium enterprises (SMEs) in Malaysia must adopt artificial intelligence (AI) and e-invoicing to stay competitive in the rapidly evolving digital economy, said Digital Minister Gobind Singh Deo.
Speaking at the SME Business Talk Series: “Empowering AI in Finance and E-Invoicing” today, he emphasized that digital transformation is no longer optional. Businesses that fail to integrate AI and e-invoicing risk falling behind in efficiency, compliance, and growth.
“The future of business is digital. The question is not if businesses will adopt AI and e-invoicing, it’s when,” he stated in his keynote address.
The Need for Digital Adoption
Gobind highlighted that technology has transitioned from being a luxury to a necessity. He stressed that businesses of all sizes must embrace digital tools to enhance operations, reduce costs, and ensure sustainability.
“SMEs are the backbone of Malaysia’s economy, contributing over 38% to Malaysia’s gross domestic product (GDP) and employing millions of Malaysians. However, many still rely on outdated processes that slow efficiency, hinder growth, and increase financial risks,” he said.
To thrive in today’s market, SMEs must integrate AI-driven solutions and digital financial tools, allowing them to streamline processes and improve tax compliance.
E-Invoicing: A Step Toward Financial Modernization
Malaysia is advancing toward full e-invoicing implementation, an initiative that extends beyond regulatory compliance. Gobind described e-invoicing as a strategic move to modernize Malaysia’s financial ecosystem.
“E-invoicing offers multiple advantages, including faster payment processing, lower administrative costs, and improved tax compliance through a seamless, fraud-resistant system. Businesses that transition now will gain a competitive edge in Malaysia’s digital economy,” he explained.
The government’s commitment to digital transformation is evident through the establishment of the National AI Office last year. This entity serves as a central authority to advance Malaysia’s AI agenda and support businesses on their digital journey.
SMEs and Industry Leaders Discuss Digital Transformation
The event, hosted by the SME Association of Malaysia at Menara AFFIN @ TRX, gathered over 300 industry leaders, policymakers, and SME owners. The discussions focused on the transformative impact of AI and e-invoicing on Malaysia’s SME sector.
Experts at the forum underscored how AI-powered financial tools can enhance business decision-making, detect fraud, and automate routine tasks, leading to higher productivity and efficiency.
Government’s Support for SMEs
Gobind reassured businesses that the Malaysian government is dedicated to fostering digitalization. Financial incentives, training programs, and collaborations with industry leaders are being developed to help SMEs transition seamlessly.
“By adopting AI and e-invoicing, SMEs can future-proof their businesses and ensure sustainable growth in an increasingly digital world,” he concluded.
As Malaysia moves forward with digital adoption, SMEs that embrace AI and e-invoicing early will position themselves as industry leaders. For the latest updates on Malaysia’s digital economy, visit News Xpress Online.
