Only 1 in 3 SMEs is thoroughly digitalised: survey

Larger firms are beating SMEs in terms of digitalisation.

Small and medium enterprises (SMEs) are far behind digitalisation compared to larger firms, a survey by Prudential showed.

According to the survey, only 30% of SMEs are mostly or thoroughly digitalised whilst 86% of large firms are.

SMEs are likewise lagging in AI (60% vs 82%) and analytics (30% vs 70%)  investments compared with large firms.

The lack of budget has also led SMEs not to adopt or offer online payments, making them far behind in this aspect vis-a-vis large firms. 

Whilst fewer SMEs are investing in advanced technologies, many of them are planning to develop advanced capabilities such as data analytics, blockchain and product/service personalisation in the next two years.

The gap between SMEs and large firms, however, has narrowed over the past five or six years, said  Kurt Wee, president of the Association of Small and Medium Enterprises (ASME).

Wee said strong government support has ensured that SMEs have access to resources and advice that help them to upgrade their digital capabilities.