ACCELERATING digital adoption among micro, small and medium enterprises (MSMEs) is critical to ensuring inclusive economic growth in Sarawak, as the state targets 80 per cent digitalisation of MSMEs by 2030, a forum heard recently.
Sarawak Entrepreneur Association president Khairulnizam Mohamed Khalid said Sarawak and Malaysia are generally on the right trajectory in embracing digitalisation, noting that the state government has set a high benchmark through its ambitious targets and sustained initiatives.
“Sarawak is actually not doing badly. We are on the right path, especially with the state government setting a very high standard by targeting 80 per cent digitalisation of MSMEs by 2030. That is a commendable initiative,” he said during the forum session titled ‘Budget Strategy: MSMEs Through Digital Adoption’, held in conjunction with the 2026 Sarawak Budget Conference in Kuching.
However, Khairulnizam stressed that greater attention must be given to micro-entrepreneurs to ensure they are not left behind, despite notable progress since digital adoption gained momentum after theCOVID-19 pandemic.
“SMEs may not face major issues as many are already established, but for micro-entrepreneurs, this is where we need to go back to the ground. Digital adoption started slowly around 2015, but after COVID-19, everything changed,” he said, citing the widespread acceptance of QR payments and online transactions even at roadside stalls as clear signs of progress.
He added that the government’s benchmarks provide a clear pathway, supported by programmes such as GoDigital, SME Digitise and Sarawak Digital Mall, which have helped businesses transition from offline to online operations.
According to him, about 15,000 MSMEs in Sarawak have already undergone some form of digitalisation, with the state aiming to expand this further through continued public-private collaboration.
Khairulnizam also highlighted the role of partnerships with the private sector, pointing to collaborations involving the Sarawak Digital Economy Corporation (SDEC) and digital platforms to bring thousands of MSMEs into online marketplaces while supporting them with financing and digital transformation tools.
Beyond infrastructure, he said mindset remains one of the most critical barriers to MSME digitalisation, particularly among micro-entrepreneurs in rural areas.
“One of the key capability gaps lies in the mindset of entrepreneurs themselves. Many micro-entrepreneurs are still comfortable operating within traditional and localised business models, and concerns over return on investment and initial costs often cloud their willingness to digitise,” he said.
He identified four main challenges facing rural entrepreneurs: connectivity and infrastructure, skills and digital literacy, access to finance and markets and ecosystem support.
While Sarawak has made progress in improving connectivity with 5G coverage reaching about 63.8 per cent, he noted that many rural communities remain underserved due to inconsistent signal quality and limited coverage, which restricts participation in the digital economy.
He said initiatives such as the Sarawak Rural Broadband Network (MySRBN) deploys smart towers to provide affordable 4G connectivity in rural and interior areas.
