Malaysian businesses embrace AI, but lag in cybersecurity

• Weak cybersecurity strategies leave businesses exposed
• Businesses must prioritise strengthening leadership technology capabilities
• AI challenge is to balance efficiency gains and preserve human expertise

While 87 per cent of businesses use data analytics and visualisation tools and 85 per cent have adopted AI, only 18 per cent have fully embedded cybersecurity into their operational strategy, well below the survey average of 28 per cent.

Of concern, 17 per cent of Malaysian businesses react to cyber threats only as they occur, and 19 per cent are unaware or unsure how cybersecurity is managed by their employer.

"With AI reshaping the business landscape, businesses must embed clear processes to protect their digital assets into their core business strategy," Priya Terumalay, CPA Australia's Regional Head for Southeast Asia, said.

"Structured prevention and detailed oversight are critical as AI-generated scams, deepfake impersonations and highly targeted phishing attacks become more prevalent."

Despite strong uptake of AI tools, deep integration into business operations remains low at just 11 per cent, compared with the survey average of 16 per cent. Most businesses use AI tools occasionally and rely on readily available tools such as ChatGPT and Microsoft Copilot, or built-in AI assistants.

Those businesses using AI find it is already delivering benefits, especially increased productivity, improved employee experience -– such as reducing routine tasks and enabling focus on strategic priorities -– and improved accuracy and efficiency of repetitive tasks.

Survey respondents cited high implementation costs, limited technology literacy within boards and senior management and tech talent shortages as key barriers to technology adoption.

"Malaysian businesses should prioritise strengthening the technology capabilities of senior leadership. While our survey shows that Malaysia is not far behind leading countries in digital adoption, without a clearer tone at the top, the nation could fall further behind regional and global competitors in digital maturity," Priya said.

The Malaysian government is committed to positioning the country as an AI-driven economy, with the AI Technology Action Plan 2026-2030 set to be tabled in Parliament in December.

Against this backdrop, Priya emphasised: "The growing maturity of technologies such as AI is accelerating business transformation. AI tools are streamlining repetitive tasks and boosting productivity across organisations.

"Though the potential of AI is immense, it is not a substitute for human ingenuity. As adoption increases, businesses must strike a balance between leveraging technological advancements while preserving and making better use of human expertise.

"As AI reshapes various industries and tasks, its true impact is yet to be determined, with the possibilities, risks, challenges and opportunities still being debated and discovered."

About the survey

CPA Australia's 5th annual Business Technology Survey was conducted between July and September 2025. It explores business technology trends across various sectors, business sizes and markets. The survey received responses from 1,117 accounting and finance professionals working in different markets, including Australia, Mainland China, Hong Kong, Malaysia and Singapore. 44 per cent of respondents worked in companies with 500 or more employees, 29 per cent in companies with 50 to 499 employees and 28 per cent in companies with fewer than 50 employees

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