Malaysia

SMEs most vulnerable to data breaches and hacking – expert

There needs to be a higher awareness level among SMEs that help is available to ward off such online evil-doers.

Updated 5 months ago · Published on 06 Feb 2026 11:09AM

SMEs most vulnerable to data breaches and hacking – expert
Penang ranks among the top four for business use among information technology communication tools - February 6, 2026

by Ian McIntyre

SMALL medium enterprises (SMEs) are the most vulnerable to data breaches, ransomware and malicious hacking, with some 10,000 infiltration incidents recorded in 2024, while experts believe more go unreported due to widespread ignorance.

Cybersecurity specialist HWD Systems Sdn Bhd chief executive officer Lim Khong Soo said that as digitalisation is embraced in total, there is a downside to it - hackers and scammers out to derail the security levels of networks and operations.

Lim said there needs to be a higher awareness level among SMEs that help is available to ward off such online evil-doers.

"Many security breaches go unreported because there is a lack of understanding about cybersecurity," said Lim.

He said this at a press conference after signing a memorandum of understanding between the state information technology authority - Digital Penang and HWD Systems.

The ceremony was attended by Chief Minister Chow Kon Yeow, while representing Digital Penang was its chief executive officer, Ng Kwang Ming.

Also in attendance were Sterling Insurance Brokers Sdn Bhd chief operating officer Wan Muzamir Fitri Che Wan and Tokio Marine Insurans (Malaysia) Berhad broking and affinity general manager Pearly Wong May Fun.

Digital Penang has pioneered the offering of insurance services for SMEs in the cybersecurity area while encouraging the small to medium and micro enterprises to invest in protecting their data network from breaches, especially from ransomware.

According to the Department of Statistics Malaysia, Penang ranks among the top four for business use among information technology communication tools, including the internet as well as web presence, said Chow.

This reflects the willingness of the business community to adopt digital solutions and the readiness to participate in the digital economy, he added.

In 2024, Malaysian SMEs reportedly suffered from more than 19.6 million cyberattacks, resulting in monetary losses of over RM1.22 billion.  - February 6, 2026.

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