SAP Malaysia: Driving Malaysia's digital economy

• The enterprise software giant aims to accelerate Malaysia's digital transformation through cloud, AI, and sustainability solutions
• Partnerships with universities and government initiatives form core of SAP's strategy for upskilling local workforce

As Malaysia sets its sights on becoming a digital economy powerhouse by 2030, SAP, a global player in enterprise software, is positioning itself as a key enabler of this ambitious vision. In a recent interview, Vipin Chandran, the newly appointed Managing Director of SAP Malaysia, unveiled the company's multifaceted strategy to support Malaysia's digital transformation journey. 

From fostering partnerships with local universities to spearheading cloud adoption and integrating cutting-edge AI and sustainability solutions, SAP is actively working to aid the Malaysian government's digital economy goals through various initiatives. "Malaysia has stated that it wants to become a digital economy by 2030," Chandran noted. "We're trying to see how we can aid the government in this process."

One of SAP's key strategies is collaboration with local universities through its University Alliance Program. "We are currently working with seven universities in Malaysia," Chandran revealed. These institutions include Asia Pacific University of Technology and Innovation, Tunku Abdul Rahman University, Universiti Kuala Lumpur, Multimedia University, Universiti Malaysia Pahang, Universiti Malaya, and Universiti Tenaga Nasional.

This program aims to drive adoption of SAP technology among future professionals, ensuring a workforce ready for the digital economy. The impact is significant, with 500-700 students benefiting from the program each year, according to SAP.

When asked about the specific focus of this collaboration, Chandran elaborated, "We're primarily training them on our ERP solutions and AI." The program provides students with hands-on experience in key technologies such as SAP conversational AI, SAP S/4HANA, SAP Business Technology Platform, and SAP Signavio.

This approach focuses on streamlining business operations and advanced AI, equipping students with practical skills in industry-standard software. As a result, graduates gain a competitive edge in the job market, helping to create a pipeline of skilled professionals tailored to the needs of Malaysia's growing digital economy.

E-invoicing and government collaboration

Starting from August 2024, Malaysia began the implementation of e-invoicing , a digital approach that enhances the speed and accuracy of financial record-keeping for businesses. This initiative, spearheaded by the Malaysian government, aims to modernize the country's tax system, reduce tax leakage, and align with global digital economy standards. 

The phased implementation will initially target large taxpayers, with plans to gradually extend to all businesses. In light of this impending change, SAP has positioned itself as a key player in facilitating this transition. 

Chandran highlighted SAP's collaborative efforts with the Malaysian government, particularly in developing solutions for the Document and Records Compliance (DRC) system. This system will be central to the e-invoicing mandate, serving as the backbone for digital record-keeping and reporting.

“We have been working closely with the Malaysian government on the DRC system, which will become mandatory for businesses," Chandran explained. "To support our customers in this transition, we've developed the DRC Reports Content Compliance Reporting Appliance. This solution is designed to seamlessly integrate with the government's digital infrastructure, making it significantly easier for our existing customers to comply with the new regulations."

He noted that while many government organizations in Malaysia were early adopters of SAP solutions, some of their systems have become outdated. “We are currently in discussions with them to explore how we can upgrade their systems to our latest solutions, which will give them access to the most recent technological advancements."

Looking ahead

The company's initiatives, from its University Alliance Program to its collaboration with the government on e-invoicing solutions, demonstrate a comprehensive strategy to address both current market demands and future challenges. By focusing on upskilling the local workforce, SAP is not only supporting its own growth but also contributing to Malaysia's broader economic development.

Looking ahead, SAP's trajectory in Malaysia seems poised for continued growth and impact. As Chandran noted, with Southeast Asia driving significant growth for SAP and Malaysia contributing a substantial portion of the region's revenues, the future looks promising. 

The company's commitment to innovation, particularly in AI and cloud technologies, coupled with its focus on sustainability, positions it well to support Malaysia's ambitions of becoming a leading digital economy by 2030.