FROM talented contractors sketching on paper to hairdressers confined to messaging apps and wedding planners drowning in hard-copy receipts, IT illiteracy is silently costing small Malaysian entrepreneurs time, money, and opportunity.
Malaysia’s micro, small, and medium-sized enterprises (MSMEs) are bursting with creativity and skill.
A rising generation of entrepreneurs, mainly millennials, is shaping homes, styling hair, and decorating weddings with remarkable flair.
Yet behind this talent lies a persistent struggle: many remain trapped in outdated practices and are unable to harness digital tools fully for compliance, marketing, and growth. The result is higher costs, slower processes, and missed opportunities in an economy that is rapidly digitising.
Despite the government’s push towards e-invoicing through platforms such as MyTax, a significant number of MSMEs still rely on paper-based methods or depend heavily on third-party professionals who are more digitally competent.
For many business owners without IT skills, digital compliance feels less like progress and more like a burden.
Consider the small but talented home renovation contractor who still sketches his designs with pencil and paper.
To submit quotations online, whether through a client’s platform or even by email, he must pay someone else to digitise his work.
What once could be settled over a simple kopi session with customers and suppliers now requires navigating digital systems he cannot manage on his own.
Or take the hairdresser whose artistry shines through every hairstyle she creates. Her only digital interaction is sending photos to customers via her smartphone, already a step up from her predecessor, who relied on film cameras provided by suppliers.
Yet without the skills to showcase her portfolio on online platforms, many of which offer free advertising, her work remains invisible to a wider audience.
Ironically, competitors with weaker technical skills can attract more customers simply by using TikTok or online marketplaces effectively.
Then there is the small-scale wedding decorator known for transforming venues into breathtaking spaces despite tight budgets.
She spends hours sorting hard-copy receipts and tracking expenses in a notebook, and must hire a tech-savvy accountant just to handle e-invoicing. Compliance costs eat into her already slim margins, leaving little room for business expansion.
These stories reveal a common theme: talent is abundant, but digital literacy is scarce. Innovation should empower, not exclude. Yet Malaysia’s current digital ecosystem often assumes that every entrepreneur is tech-savvy.
Without accessible tools and proper training, IT illiteracy becomes a hidden cost for MSMEs, draining resources, reducing competitiveness, and stifling long-term growth.
In a period of rising inflation and an ageing population, the question is not whether to innovate, but how to ensure that innovation is inclusive.
The Way Forward
Overcoming IT illiteracy does not require MSMEs to reinvent the wheel. It begins with small, practical steps, taken gradually and with confidence.
Digital tools are becoming increasingly affordable, some even free, albeit supported by minor advertising, and many are now equipped with AI features designed to simplify routine tasks.
However, before proclaiming artificial intelligence as a universal solution, one reality must be acknowledged: many entrepreneurs are not yet comfortable with basic IT usage. Building confidence is the first and most essential step.
Most MSMEs cannot afford to attend physical courses that provide hands-on guidance, and many struggle even to navigate free online tutorials.
Still, progress is possible through accessible support systems. Community networks, private technology companies, and government agencies all play a critical role by offering subsidised, sponsored, or free training.
These initiatives must go beyond filling hotel ballrooms merely to meet organisers’ KPIs. They must deliver training that feels practical and meaningful, similar to short college-style courses that provide step-by-step, skills-based exposure.
One real-world example is Singapore’s SME Digital Tech Hub, which provides personalised digital transformation support for small businesses.
A similar model in Malaysia, where entrepreneurs receive structured, guided, and context-specific digital training, could dramatically reduce reliance on third parties for simple tasks.
It would help transform entrepreneurs from individuals who instinctively say, “I don’t know, so I must hire someone,” into those who can independently search for solutions, use AI assistants, or follow digital prompts to complete tasks such as e-invoicing, marketing, or tax filing.
Once entrepreneurs gain this foundational confidence, they can move to the next phase: applying newly acquired digital skills to manage operations more efficiently, promote their services online, and compete on a level playing field with more tech-savvy peers.
If left unaddressed, IT illiteracy will continue to impose hidden costs and limit the growth potential of Malaysian MSMEs.
But by combining proper training, AI-enabled tools, and smarter, more user-friendly system design, Malaysia can make digital transformation truly inclusive.
Every entrepreneur – whether contractor, hairdresser, or wedding decorator – deserves the opportunity not merely to survive, but to thrive in the digital age.
● Diana Ho Ak Maling, MBAi Graduate, School of Business, Faculty of Business, Design and Arts, Swinburne University of Technology Sarawak Campus
The views expressed here are those of the writer and do not necessarily represent the views of Sarawak Tribune. The writer can be reached at mvoon@swinburne.edu.my.
