MSMEs must embrace digitalisation or risk being left behind, says Naroden

KUCHING (Jan 24): Micro, small and medium enterprises (MSMEs) that fail to adapt to the digital economy risk being marginalised in an increasingly competitive global market, potentially widening the income gap between urban and rural areas, said Dato Sri Mohd Naroden Majais.

Speaking at the launch of the Sarawak Digital Mall ‘Pesta Lokal’ here on Friday, the Sarawak Ministry of International Trade, Industry and Investment (Mintred) advisor said digitalisation is no longer a peripheral component of the economic framework, but a strategic necessity.

He stressed that digital transformation is a key driver towards realising the Sarawak government’s aspiration in building a high-income economy that is inclusive, sustainable, and resilient.

“E-commerce and digital platforms offer practical solutions by reducing geographical constraints, expanding market access, and enabling businesses to grow without requiring large capital investments,” he said.

On the event, he said the Sarawak Digital Mall ‘Pesta Lokal’ reflects the state government’s commitment to ensuring fair opportunities for local entrepreneurs in digital economy.

“It is also the result of an ongoing strategic collaboration between Mintred, Sarawak Digital Economy Corporation (SDEC), and TikTok Shop Malaysia in developing a more inclusive digital trade ecosystem in Sarawak,” he added.

Naroden further explained that the Sarawak Digital Mall initiative was designed with a strong emphasis on measurable outcomes, particularly in developing the practical skills of local entrepreneurs to operate online businesses with greater confidence and effectiveness.

“In 2025 alone, sellers in Sarawak generated nearly RM12 million in sales through TikTok Shop.

“More than 350 Sarawakian entrepreneurs successfully completed training under this initiative and became active sellers on digital platforms,” he noted.

He added that business owners also received support from the state government through the ‘Pakej Rangsangan Penjual’ initiative, which includes vouchers, advertising credits and affiliate incentives worth up to RM5,000 for each eligible seller.

With the adoption of new technologies in business, Naroden stressed that digitalisation does not mean the loss of heritage.

“On the contrary, it becomes a strength and a competitive advantage in the modern marketplace when technology is used to reinforce local identity and empower the people, in line with Sarawak’s vision of shared prosperity under Post-Covid Development Strategy (PCDS) 2030,” he added.