THE Penang government has underscored the importance of cybersecurity as a key pillar of digital resilience, particularly for micro, small and medium enterprises (MSMEs), amid rising digital adoption across the state.
Chief Minister Chow Kon Yeow said digital transformation has brought significant benefits to businesses, but it has also increased exposure to cyber risks that must be managed responsibly.
“Digital technologies have enhanced productivity, expanded market access and enabled innovation, but they have also exposed businesses to greater digital risks,” he said at the signing of a memorandum of understanding (MoU) between Digital Penang and HWD Systems Sdn Bhd in Komtar today.
Chow said cybersecurity is no longer limited to technical systems, but is closely linked to governance, risk management and long-term sustainability.
“How digital risks are anticipated, managed and mitigated will shape the confidence of customers, partners and investors in the years ahead,” he said.
Citing national data, Chow said 21,208 micro, small and medium enterprises nationwide have successfully integrated digital technology into their business processes, reflecting growing confidence in digital tools.
He added that Penang continues to lead in digital adoption, consistently ranking among the top four states for business use of information and communications technology (ICT), according to the Department of Statistics Malaysia.
“This shows that our business community is open to digital solutions and ready to participate in the digital economy,” he said.
Chow welcomed the collaboration between Digital Penang, technology solution providers and the insurance sector, saying it reflects a holistic approach to digital readiness.
“This initiative recognises that awareness, protection and recovery must work together to support businesses in an increasingly complex digital environment,” he said.
He added that strong cybersecurity practices are increasingly seen as an indicator of trust, reliability and responsible business conduct, in line with environmental, social and governance (ESG) expectations.
“We support initiatives that strengthen our digital ecosystem while safeguarding its integrity,” he said.
Chow said such efforts align with the state’s vision of positioning Penang as a resilient, innovative and inclusive digital economy.
“I welcome this initiative and congratulate all parties on the signing of this memorandum of understanding,” he said.
Meanwhile, Digital Penang chief executive officer Ng Kwang Ming said the MoU marks an important step in strengthening the foundations of Penang’s digital economy.
“This memorandum of understanding reflects our shared commitment to ensuring that digital growth is driven by innovation, resilience and, most importantly, trust,” he said.
Ng said small and medium enterprises remain central to Penang’s digital transformation, describing them as the backbone of the economy.
“MSMEs drive innovation, create jobs and sustain growth. For them, digitalisation is no longer optional. It is essential for survival, growth and competitiveness,” he said.
However, Ng stressed that digital progress must be matched with strong digital trust, as cyber risks continue to evolve alongside technology adoption.
“As MSMEs expand their digital footprint, cybersecurity must be treated as a core business priority rather than a technical add-on,” he said.
Ng said the collaboration brings together cyber risk management, insurance-backed protection and the digital finance ecosystem, making cybersecurity more accessible for MSMEs.
“When MSMEs are secure and trusted, they operate with greater confidence. When they are confident, they become more competitive, and that ultimately strengthens Penang’s digital economy,” he said.
At the same event, HWD Systems CEO Lim Khong Soo highlighted the growing importance of cybersecurity for MSMEs.
“Many MSMEs believe they are too small to be targeted, or that cyber risks only affect large organisations. In reality, MSMEs are increasingly exposed. A single cyber incident can disrupt operations, compromise semi-sensitive data, and seriously affect business continuity,” he said.
Lim noted that traditional cybersecurity service providers have largely focused on larger enterprises, leaving MSMEs with limited access to practical, affordable, and easy-to-adopt solutions.
On the role of Cybersure, Lim explained that it is designed to help MSMEs understand their cyber risk and take practical steps to protect themselves.
“It combines cybersecurity tools, managed services, and cyber insurance — all tailored to be affordable and accessible for smaller businesses,” he said.
Lim shared that the MoU represents a shared commitment to ensure MSMEs are not left behind as Penang continues to promote digital transformation.
“We look forward to working closely with the state government, Digital Penang, and Tokio Marine Insurance to help MSMEs protect themselves and build a more resilient digital business community,” he said.
Among those present were Consul General of Japan in Penang His Excellency Shinya Machida, HWD Systems Sdn Bhd chief product marketing officer Tan Kah Kit, Sterling Insurance Brokers Sdn Bhd chief operating officer Wan Muzamir Fitri Che Wan, and Tokio Marine Insurance (Malaysia) Berhad Broking & Affinity general manager Pearly Wong.
Story by Edmund Lee
Pix by Alissala Thian
Video by Law Suun Ting