KUALA LUMPUR (Oct 26): The Ministry of Digital has acknowledged the importance of empowering micro, small, and medium enterprises (MSMEs) to leverage artificial intelligence (AI) and digital technology.

Digital Minister Gobind Singh Deo said this would encourage MSMEs to pivot towards new business models that optimise operations and enhance economic potential.

The government has reportedly initiated several programmes to support the adoption of digital technology, as the MSME sector represents nearly 97% of businesses in Malaysia.

"Firstly, we can incentivise companies to digitise, encouraging them to consider automating aspects of their operations to boost productivity.

"Engagement and awareness are also crucial. People need to understand that traditional methods may not yield the same benefits as modern approaches. Companies that embrace new technology will find themselves better positioned compared to those that do not," Gobind told participants of the Youth Economic Forum 2024 here on Saturday.

He said that his ministry maintains close contact with industry bodies and MSME associations.

"It is essential for MSMEs to recognise that adaptation is not optional [but a must] if they want to avoid being left behind.

"Once there’s awareness, we can focus on providing support to help them rebuild and redefine their businesses, in line with technological advancements," Gobind said.

However, the minister also emphasised that developing talent is a crucial matter.

"Developing a talent pipeline in technology, especially in AI, is essential. The government is currently focusing on technical and vocational education and training (TVET) to prepare our youth for new market demands.

"In the digital sector, we have a similar initiative — digital TVET or DVET. Our goal is for companies to train employees while they work, enabling them to gain degrees and advance in their careers," Gobind added.

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