Asia-Pacific SMEs seek new growth through AI, deeper connectivity

The deployment of AI robotics by Seng Fong Holdings Berhad in Malaysia, leveraging technology from a Chinese AI firm, demonstrates a tangible benefit for SMEs: a 20 to 30 percent cut in labor costs. This specific example, highlighted at the APEC SME Ministerial Meeting in Guangzhou, points to AI’s role in leveling the playing field for smaller businesses against industry giants, as noted by X Square Robot’s COO Yang Qian. The cost and time barriers to AI adoption are decreasing, with complex tasks now achievable in days rather than months. However, the path to widespread digital transformation for Asia-Pacific SMEs still faces hurdles, including high implementation costs and talent shortages. China’s recent action plan to foster over 10,000 technology-based SMEs by 2028, alongside its commitment to provide 5,000 AI training opportunities for developing countries and establish AI application centers with ASEAN nations, suggests a regional push to mitigate these challenges. The key watch point is whether these initiatives can effectively bridge the digital divide and foster genuine cross-border technological synergy, moving beyond mere rhetoric to deliver measurable impact for SMEs.