For Datuk Seri Mustapa Mohamed, Minister in the Prime Minister’s Department (Economy), businesses must explore opportunities for digital transformation in Malaysia, as they are critical to the country’s economic recovery efforts and can help contribute to its long-term economic resilience. The MyDIGITAL plan intends to make Malaysia a technologically advanced and digitally-driven country, as well as a regional leader in the digital economy by 2030, he added.

Additionally, the digital economy is projected to contribute 22.6{aa282f308afcc222aaa21b0478c79e01a8fedd01972e2180867097bd93930f22} to Malaysia’s GDP and generate 500,000 new jobs by 2025. Cloud services were also highlighted in the MyDIGITAL program, with a focus on a ‘cloud first’ strategy at both the federal and state levels, which will help facilitate the adoption of cloud technologies in the country.

Earlier this year, SAP Malaysia Managing Director Kok Cheong Hong has already expressed support for the initiative and described it as a major “breakthrough yet realistic” digital vision. Hong believes this approach serves as a motivation for local businesses, particularly small and medium-sized enterprises (SMEs), to embrace dynamic consumption, establish resilient infrastructure, and utilise cloud solutions to boost efficiencies and productivity.

“Public-private plural partnerships are also important to help drive SME readiness, which in turn further encourages innovation and flywheel digitalisation effect for all concerned,” Hong remarked.

SAP Malaysia Emphasises the Need for Digitalisation among SMEs

Furthermore, Hong put the spotlight on the significance of the SME sector today as many businesses are still lagging in terms of technology use. According to the 24th Malaysia Economic Monitor: Weathering the Surge report, SMEs in the Southeast Asian nation have been underperforming both in terms of output and productivity levels when compared against peer countries. It has also been found that the COVID-19 pandemic has widened the productivity gap. With this, SAP Malaysia seeks to raise awareness for SMEs before increasing uptake on digital platforms.

“Businesses that are adopting a ‘wait and see’ attitude towards digitalisation could be left behind – and may even become irrelevant. Many solutions that were once the exclusive domain of large corporates have been scaled in capacity – and price – and are now within reach of local SMEs,” Hong stressed.

The likes of glove maker Aspen Glove Sdn Bhd and renowned spice manufacturer Baba Products Malaysia Sdn Bhd have already embarked on their digital transformation journeys towards becoming intelligent enterprises through SAP upgrade projects centered on automation and innovation to enhance productivity and cost-efficiency.

Aspen Glove’s ​​industry used to be labour-intensive but after implementing SAP solutions, it has now automated the processes end-to-end. It has selected SAP S/4HANA Cloud, Private Edition for its latest glove manufacturing plant that operates 96 production lines. On the other hand, Baba Products had migrated from its previous all-manual, paper-based operations to the SAP S/4HANA platform, which was supported by Direct Store Delivery with CRM, SAP Payroll, and SAP SuccessFactors.

“Hence, Aspen Glove is able to revolutionise the quality, customisation and speed of delivery to meet the customer demands of today,” Hong noted.

The SAP Malaysia MD further explained that businesses can become intelligent enterprises by first digitising processes where they can “do more with less”, create best-in-class customer experiences, establish sustainable supply chains, and innovate new business models and revenue streams.

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Earlier this year, SAP Malaysia Managing Director Hong Kok Cheong expressed his support for the Malaysia Digital Economy Blueprint (MyDIGITAL), which is a new and comprehensive approach aimed at developing the country’s digital economy into a strategic economic engine of growth by 2030. Once again reinforcing its contribution to the nation’s digital transformation, SAP Malaysia has recently entered a Memorandum of Understanding (MOU) with TM ONE to further support the goals of the MyDIGITAL initiative. Commenting on the latest collaboration, Hong stated:

“True digital transformation is the fundamental rethinking of the customer experience, business models, and operations to find new ways in delivering value, generating revenue, and improving efficiency. This can be done by leveraging intelligent technologies such as enterprise resource planning (ERP) solutions, artificial intelligence (AI), and the cloud.”

Moreover, TM ONE and SAP’s strategic partnership intends to improve the operational efficiencies of Malaysian enterprises through digital solutions. TM ONE has been named as the first local hyperscaler to be appointed as an SAP PMC provider for SAP Business Suite — including the SAP S/4HANA Intelligent Enterprise and SAP Business One solutions — in the country. With this, TM ONE’s Alpha Edge (a Edge) will empower SAP’s ERP solutions through the company’s cloud infrastructure to help fulfill the needs of TM ONE’s enterprise customers.

“With SAP solutions hosted on TM ONE’s a Edge, businesses can harness the power of their data and build a truly intelligent enterprise, while accelerating trusted outcome-driven innovation, real-time decision making, and thrive in the digital economy,” the SAP MD said.

SAP Business Suite Now Offered by TM ONE Following SAP PMC Appointment

Following its appointment as an SAP PMC, TM ONE now offers a full subscription-based system of SAP Business One — the German tech giant’s business management software designed for small and medium-sized enterprises — hosted on TM ONE’s a Edge along with managed services. This approach aims to deliver confidence, visibility, and predictability for customers hoping to migrate their enterprise systems to the cloud.

Also commenting on the new partnership, TM ONE Executive Vice President Shazurawati Abd Karim noted that SAP Malaysia’s appointment marks another milestone for the company as it continuously expands and strengthens its a Edge cloud offerings. He acknowledged SAP as a “renowned global technology powerhouse” that is a key enabler in advancing the digitalisation of businesses through its ERP solutions. Shazurawati added:

“We view this appointment as timely in TM ONE’s continuous journey towards taking transformation forward for Malaysian enterprises. As we innovate and continue to empower our customers in the current digital economy, SAP is the right organisation to drive the digital transformation of businesses, thus elevating the country into Digital Malaysia.”

“This befits TM Group’s unique role as the enabler of Digital Malaysia’s aspirations, committed to serving a more digital society, digital business, digital industry, and digital Government,” Shazurawati emphasised.

Furthermore, it has been said that TM ONE is in talks with SAP to finalise the scope of its offering by extending the PMC program to SAP S/4HANA Intelligent Enterprise solutions for large enterprise clients. Additionally, the two companies will also pursue a co-development and innovation collaboration as part of the MOU, which will include transformation projects for 5G use cases, Customer Experience, Procurement, and Digital Supply Chain, as well as Human Experience Management (HXM).

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