Digital payment usage has also declined in 2025 with 74 per cent of small businesses receiving more than 10 per cent of their sales through digital payment platforms such as GrabPay, Touch 'n Go and Boost, compared to 78 per cent in 2024.
Priya Terumalay, CPA Australia's Regional Head for Southeast Asia, said while government initiatives have helped support technology adoption, these efforts have yet to drive significant uptake of deeper productivity-enhancing technologies, such as artificial intelligence, process automation, data analytics and systems integration.
"Technology investment remains concentrated in computer hardware and customer-facing functions like mobile apps and payments, while structural constraints continue to limit more transformative approaches," Priya said.
"With cost pressures remaining a persistent challenge compressing margins, policy priorities should focus on addressing structural constraints such as re-orienting digital support towards automation, systems integration, and data use along with support for productivity-enhancing responses rather than short-term relief."
Businesses making technology investments must include adequate protection measures to minimise cyber risk exposure as 35 per cent of small businesses lost time or money due to a cyber-attack in 2025.
Only 39 per cent reviewed their cybersecurity protections over a six-month period, the second lowest result among the 11 markets surveyed.
Despite the challenges, business sentiment on the Malaysian economy remains positive with 75 percent of small businesses expecting the economy to grow in 2026.
A strong 77 per cent also anticipate business growth this year, although improved access to effective finance, especially for investment will be important to enable deeper digital transformation and build resilience.
"This is particularly crucial for outward-oriented small businesses navigating global supply chain pressures and trade policy uncertainty that could weigh on growth, especially firms integrated into regional supply chains." Priya said.
About the survey
CPA Australia's 17th annual Asia-Pacific Small Business Survey was conducted among small business owners/senior managers during November and December 2025 to identify the characteristics of successful small businesses across the region. The findings for the survey come from 4,166 small businesses in 11 markets. From the commencement of the survey in 2009, we have surveyed over 50,000 small businesses across the region. These include Australia, Mainland China, Hong Kong, India, Indonesia, Malaysia, New Zealand, Philippines, Singapore, Taiwan and Vietnam.
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About CPA Australia
CPA Australia is one of the world's largest professional accounting bodies, with more than 175,000 members in over 100 countries and regions, including more than 21,000 members in Southeast Asia. As we mark our 140th anniversary, we also celebrate 70 years of presence in Malaysia. With offices in Malaysia, Singapore, Indonesia and Vietnam, we are the largest Australian accounting body in the region providing education, training, technical support and advocacy. CPA Australia provides thought leadership on issues affecting the accounting profession and the public interest. We engage with governments, regulators and industries to advocate policies that stimulate sustainable economic growth and have positive business and public outcomes. A CPA is a Certified Practising Accountant. More at cpaaustralia.com.au
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