Kuala Lumpur: Small and medium enterprises (SMEs) must embrace artificial intelligence (AI) and e-invoicing to remain competitive in Malaysia's evolving digital economy, said Digital Minister Gobind Singh Deo. Speaking at the SME Business Talk Series: 'Empowering AI in Finance and E-Invoicing' here today, he emphasized that digitalisation is no longer optional as businesses that fail to adapt risk falling behind.
According to BERNAMA News Agency, Gobind Singh Deo highlighted that technology has become a necessity rather than a luxury, underscoring the need for businesses of all sizes to adopt digitalisation to maintain competitiveness, compliance, and sustainability. He noted that SMEs are the backbone of Malaysia's economy, contributing over 38 percent to the country's gross domestic product (GDP) and employing millions of Malaysians, yet many still rely on outdated processes that slow down efficiency, limit growth, and create unnecessary financial risks.
Gobind further stated that to thrive in the modern economy, SMEs must take advantage of AI-driven solutions and digital financial tools to enhance business operations, reduce costs, and improve compliance efficiency. Regarding Malaysia's move toward full implementation of e-invoicing, he explained that the initiative goes beyond regulatory compliance, serving as an opportunity to digitalize business operations and a crucial step in modernizing the country's financial ecosystem. E-Invoicing offers several benefits, including faster payments, lower administrative costs, and improved tax compliance through a seamless, fraud-resistant system. Transitioning to e-invoicing now will put businesses ahead of the curve and provide a competitive advantage in Malaysia's digital economy.
Gobind also added that the Malaysian government is committed to supporting businesses in their digital transformation journey, highlighting the establishment of the National AI Office last year as a central authority to drive the country's AI agenda. The event, hosted by the SME Association of Malaysia at Menara AFFIN @ TRX, gathered over 300 industry leaders, policymakers, and SME owners to discuss the transformative impact of AI and e-invoicing on Malaysia's SME sector.