Why SMEs Still Struggle to Digitalize in 2025

Even with grants, AI tools, and cloud software everywhere — many Southeast Asian SMEs are still stuck managing everything through WhatsApp and Excel.

After speaking with business owners and reviewing recent reports from MDEC, SME Corp, and Deloitte,I noticed the same three misconceptions come up again and again 👇

1. “Digitalization is too expensive.”

Reality: It doesn’t take a six-figure budget anymore. Cloud platforms and modular SaaS systems now let SMEs start small — even by digitizing just one function like booking, invoicing, or inventory.Some local solutions cost under RM500 lifetime, and the ROI comes quickly through time saved and fewer manual mistakes.

2. “It’s too complex to manage.”

Reality: Today’s digital tools are plug-and-play. No in-house IT team required — updates, backups, and security are handled automatically. In Malaysia, MDEC’s digitalization initiatives even provide step-by-step guidance to help SMEs “navigate their journey seamlessly.”Start with one process, learn, and scale — not everything has to change overnight.

3. “It’s only for big companies.”

Reality: Digital transformation is now the great equalizer. SMEs that adopt simple automation or online tools often see 20–30% higher productivity. A small retail business in Vietnam used an AI-based HR system and grew revenue by 30% in six months.

Digitalization isn’t a corporate luxury anymore — it’s a survival strategy for every business. At NexVance Technology, we help SMEs start small, scale fast,and turn digital transformation into real business ROI — not another buzzword.

👉 Which of these myths have you heard in your company?