PENANG, 06 August 2026 – Digital Penang was honoured to be part of SME Innovation Day 2026, held at Universiti Sains Malaysia (USM), bringing together academia, industry and small and medium enterprises (SMEs) to strengthen collaboration in digitalisation, artificial intelligence (AI), innovation, research and business capacity development.
The event brought together more than 150 participants representing over 65 SME companies, providing a platform for businesses and academic experts to connect, identify industry needs and explore practical solutions through university–industry collaboration.
A key highlight of the event was the signing of a Memorandum of Understanding (MoU) between Digital Penang and USM, marking a shared commitment to strengthening collaboration and supporting the development of a more connected and innovation-driven SME ecosystem in Penang.
The collaboration reflects the growing importance of closer partnerships between academia, industry and ecosystem organisations in helping SMEs respond to evolving market needs, adopt new technologies and build stronger capabilities.
In his remarks at the closing ceremony, USM Vice-Chancellor Prof. Dato’ Seri Ir. Dr. Abdul Rahman Mohamed highlighted that SMEs should no longer be viewed merely as recipients of knowledge and technology, but as strategic partners and co-creators of value. SMEs, he noted, understand market needs, move quickly and are able to identify challenges faced on the ground.
The importance of industry input in shaping future-ready talent was also emphasised, with stronger university–industry engagement seen as essential in ensuring graduates remain relevant to current market demands and improving their employability.
The three-month USM–SME Synergy Programme further demonstrated the potential of this approach. During the programme, 105 SMEs submitted 116 issues and industry needs, while 17 Memoranda of Understanding (MoUs) and Letters of Acceptance were successfully concluded. These collaborations subsequently led to the development of eight projects worth RM1.235 million, supporting solutions identified through the USM SME Cluster.
The eight projects reflect the practical impact that can be achieved when academic expertise is matched with real industry challenges, covering areas such as digitalisation, AI and data analytics, product and process innovation, business capacity development, as well as research, intellectual property and commercialisation.
Through its Enterprise Innovation Platform (EIP), USM will continue to strengthen this ecosystem by systematically profiling industry needs, matching them with relevant academic expertise and monitoring the outcomes of collaborations.
For Digital Penang, the collaboration with USM represents another step towards building stronger connections across Penang’s digital and innovation ecosystem. By bringing together the capabilities of academia, industry and ecosystem partners, SMEs can gain greater access to knowledge, technology and expertise needed to strengthen their competitiveness.
As Penang continues to advance its digital economy, Digital Penang looks forward to deepening its collaboration with USM and other ecosystem partners to create more meaningful opportunities for SMEs, accelerate technology adoption and turn innovation into tangible business impact.
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