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Red Hat And NAIO Study Finds Local MSMEs Want AI to Boost Growth Without Adding Costs



Red Hat, a provider of open source IT software services for corporate companies, and the National AI Office Malaysia (NAIO) recently released a study on the integration of artificial intelligence technology in micro, small and medium-sized businesses (MSMEs) in Malaysia.


A total of 133 MSMEs registered under the Malaysia Digital Economy Company (MDEC) network were surveyed by these two companies, and it is said that around 44 percent of them want the use of AI to boost company growth without increasing costs to the company. And this is where the use of open source AI technology comes in to help these companies.


These companies are also all seen to have implemented the use of open source AI technology to varying degrees. 36 percent of the companies surveyed have introduced pilot projects using AI technology, but only 21 percent of them have used the technology to boost growth and increase profits for their respective companies.


This is not surprising as 60 percent of the companies surveyed also said that expertise in AI technology development was their biggest hurdle, while 52 percent of them cited cost and technology implementation as a major barrier.


“Red Hat is ready to help support the growth of MSMEs in Malaysia to use open source services combined with AI. By reducing skills gaps, infrastructure costs and vendor lock-in, open source can empower the MSME sector to experiment, adapt and scale AI more responsibly. Our collaboration with NAIO aligns this vision with Malaysia’s national AI strategy, providing these companies with the tools and confidence to demonstrate positive business impact through AI,” said Albert Chai, General Manager of Southeast Asia for Red Hat.


The study also highlighted that achieving AI technology development maturity in Malaysia requires a coordinated effort across government, industry and academia. These companies said that comprehensive ecosystem support, funding and incentives from government and technology providers are essential for sustainable growth.

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