Study: Digitalisation top of MY firms' agenda but many still fall behind

The past two years have made digital transformation as well as relevant talent and skills a growing priority for companies. To this end, nearly half of businesses in Malaysia plan to improve their digital capabilities (48%) over the next three years, according to the Associated Chinese Chambers of Commerce and Industry of Malaysia’s (ACCCIM) business survey report conducted by PwC Malaysia.

Although digital capabilities are now on businesses' radars, many companies are still falling behind with only 16% having strong digital capabilities. At the same time, while 50% of the respondents are using technology to assess relevant data to improve decision making, only 25% have access to reliable and timely information.

That said, companies are still taking active steps to enhance the digital capabilities required for their business, including driving efficiency and collaboration (48%), upskilling employees' digital capabilities (46%), and creating new business opportunities (29%) as well as a superior customer experience (29%).

When it comes to long-term investments, 73% plan to make changes in the area of digital transformation as well as leadership and talent development. This was followed by new technologies and automation (72%). That said, expanding into new markets and tapping into new client segments (71%) remains a key business priority for the next three years, the report found.

While digital transformation might be a top priority, only 19% have a clear and documented roadmap for this. The report also found that only 30% of respondents are exploring technology to create new business opportunities and to enhance customer experience.

Meanwhile, markets are reopening and Malaysia's borders have been opened to all countries since 1 April. While this might be news for companies to rejoice about, the report found that respondents' business growth prospects for the next three years are far below the pre-pandemic level, with only 59% projecting growth compared to the 96% surveyed by ACCCIM in 2018.

However, this may be the new normal going forward with various challenges in growing existing markets, global conditions such as the Russia-Ukraine war, as well as the rise in awareness of the risk of global warming. Nearly half of respondents (49%) expect their company to grow steadily in the coming three years while 29% expect no change.

The report surveyed 724 respondents, 63% of who are from private limited companies while 21% are sole proprietors. More than 50% of the respondents are directors/MD/chairman and the businesses surveyed have an annual turnover from RM25 million to RM500 million.

Photo courtesy: 123RF

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