A new study by Ecosystm, supported by Red Hat and the Malaysian National AI Office (NAIO), finds that while Malaysian small and medium enterprises (SMEs) are increasingly exploring artificial intelligence (AI), adoption remains at an early stage, with open source technologies playing a central role in enabling scalable implementation.
The research, titled “Accelerating SME AI Adoption Through Open Source in Malaysia’s Digital Future”, surveyed 133 SMEs across various industries. It revealed that 44% of respondents expect AI to drive business growth without increasing costs, while 41% view it as a means to develop new products and services. Despite this optimism, only 36% of SMEs are piloting AI projects and just 21% have scaled AI solutions across their organisations.
Open source is emerging as a critical enabler. Among respondents, 54% cited cost savings and 51% cited flexibility as key reasons for adopting open source AI solutions. However, 60% identified a lack of in-house technical expertise as the primary barrier to adoption, with 52% highlighting implementation and maintenance costs.
The study emphasises the need for cross-sector collaboration to accelerate AI maturity. SMEs highlighted stronger ecosystem support including funding, incentives, and partnerships with technology providers, as vital for scaling AI responsibly. NAIO, as the central coordinating body for Malaysia’s national AI strategy, is positioned to play a pivotal role in supporting SMEs through these efforts.
Albert Chai, general manager for the Rest of Southeast Asia at Red Hat, said, “By lowering barriers like skills gaps, infrastructure costs and vendor lock-in, open source empowers SMEs to experiment, customise, and scale AI more responsibly. Our collaboration with NAIO aligns this vision with Malaysia’s national AI strategy, providing SMEs with the tools and confidence to turn AI potential into real impact.”
Shamsul Izhan, Head of NAIO, added, “Open source lowers the cost of entry while giving businesses greater control over their data and their future. By working with Red Hat and other partners, NAIO is committed to democratising AI and ensuring that its benefits reach all corners of the economy.”
Sash Mukherjee, VP Industry Insights at Ecosystm, highlighted that open source AI provides flexibility, transparency and long-term control, creating a foundation for scalable, responsible AI adoption and a stronger national ecosystem.
The study surveyed SMEs within Malaysia Digital Economy Corporation’s (MDEC) network and included in-depth interviews with NAIO stakeholders and working group members.
Source: https://www.businesstoday.com.my/2025/11/02/open-source-key-to-scaling-ai-adoption-among-malaysian-smes-study-finds/