OF some 600,000 small and medium enterprises (SMEs) in Malaysia, slightly over 100,000 have websites. This drives home one main point there's still plenty of room for technology to seep its way into the sphere of small firms in the country. And this is something SMEs can ill afford not to allow, that is, if they aspire to become world-class entities.

With 1.9 billion consumers online worldwide and tens of millions of businesses searching for products and services on the web, there is a huge market waiting for them.

According to a Nielsen Consumer Report, 85% of Internet users globally have purchased something online.

Google Malaysia Sdn Bhd industry head James Yeang says it is vital that SMEs embrace information technology (IT) to expand their market reach. Unfortunately, many appear unfamiliar or hesitant to use technology to grow their businesses, as their main focus is to drive and meet sales targets.

Yeang describes this as an anomaly because IT will improve the bottomline of companies by minimising costs and enhancing sales over the long term. “Many SMEs do not realise that using the right tools in actual fact only needs a small amount of investment. The appropriate technology will enable them to go global and capture new markets overseas.

“Malaysian businesses, including SMEs, should capitalise on the information, tools and marketing platforms available on the web to springboard into new markets,'' he says in an interview.

According to Yeang, businesses of all sizes face a number of challenges when expanding overseas. They need to identify the right market and understand the export opportunity as well as business profitability.

Businesses ought to also know in which parts of the world are consumers interested in purchasing their products and services and the level of competitiveness in these markets.

Once they have identified the right market, these businesses have the option to translate their websites and advertise in the local language as well as offer local payment, delivery and customer support options.

Finally, and perhaps most importantly, they need to have an efficient way to reach new customers overseas and drive them to their websites, with the aim to eventually purchase their products and services.

Yeang says the authorities will need to embark on more eduction and awareness programmes to ensure further penetration of Internet in Malaysia which, in return, will benefit also SMEs. The current Internet penetration in the country is around 66%, which is lower than some of the countries in the region.

Last year, Google, in collaboration with the International Trade and Industry Ministry, Multimedia University and Universiti Tunku Abdul Rahman, offered a SME business stimulus package that enabled local businesses to be cost-effective and access a wider market.

This package, among others, allow SMEs to access their potential customers online and grow their businesses cost-effectively via the user-friendly websites and online marketing campaigns. Besides developing websites, the company also assisted small businesses to design their websites and create effective online advertisements.

Yeang is one of the speakers at The Star Outstanding Business Awards (SOBA) 2011 forums in Kuching (July 13) and Kuala Lumpur (July 26). The topic of his presentation is “Growing your business online strategies to reach and engage the new Malaysian consumer”.