Technology is often hailed as the great equaliser for small- and medium-sized enterprises (SMEs) as they compete with larger firms. Cloud platforms, AI and automation tools are more accessible than ever, leading many SMEs to believe that buying the right tech is the ticket to transformation. The truth is, without the skills to use these tools effectively, technology remains underutilised.
Upskilling is a critical modern day investment — it is what enables people and organisations to stay adaptable, competitive and relevant in a fast-changing world driven by technology.
Recent surveys underscore this point. The 2025 ManpowerGroup’s latest Talent Shortage Survey revealed that 77% of employers in the Asia Pacific region are struggling to find skilled talent. The number has increased significantly from 45% in 2014 and exceeds the global average of 74%. Locally, the UOB Business Outlook Study 2025 (Singapore) revealed that a third of SMEs face operational challenges because employees lack digital skills to unlock new systems.
This reflects a deeper misconception among SMEs: that digitalisation ends at acquiring technology. In reality, digitalisation is only as effective as the people operating it. A company may adopt the latest AI-powered analytics, but without staff who can interpret the data, make strategic decisions, and act on insights, the tool sits idle.
At its core, effective digitalisation is driven by human capability. And increasingly, these capabilities are not only vital for operational efficiency but also for regional competitiveness. According to the UOB Business Outlook Study 2025 (Regional), almost three in five businesses plan to expand into ASEAN by 2028 – yet more than a third lack the in-house talent to make it happen. Upskilling is the bridge between ambition and execution in regional growth.
For SMEs, building cross-market competencies and nurturing talent mobility will define the next frontier of competitiveness. In a region as interconnected as ASEAN, success will depend on how well businesses can adapt, collaborate and lead across cultures. Skills, like capital, must be continuously invested in to generate returns and power growth.
Many SMEs hesitate to prioritise upskilling because of three familiar pain points: time, money, and lack of guidance.
These barriers are real, but the costs of ignoring them are far higher. SMEs that neglect workforce development risk ending up in a vicious cycle: investing in tools that no one can maximise, falling behind competitors and facing higher employee turnover as workers seek growth opportunities elsewhere.
In contrast, companies that treat skills as currency reap compounding returns. A digitally fluent, agile workforce not only drives better adoption of new tools but also builds resilience against shocks — whether they come from evolving technologies, changing regulations, or shifting customer expectations. In today’s ASEAN economy, talent is the new infrastructure of growth.
What should SMEs be “minting” in this new economy of skills? Three skillsets stand out as particularly valuable in today’s digital age:
Agility is no longer a soft skill; it is a strategic asset. Differences in digital systems, consumer behaviour, and regulations across ASEAN require SMEs to build teams that can retool swiftly and execute precisely. Success comes not from mastering a single system, but from cultivating talent that can pivot rapidly as conditions change.
SMEs should focus on learning velocity – how fast their teams absorb and apply new capabilities – in order to stay competitive. Continuous learning must be embedded into daily operations, with every new tool, platform, or process rollout treated as a skills upgrade. When agility is systematised, it becomes the engine of growth, allowing SMEs to respond to disruption, seize opportunities, and expand across markets with speed and confidence.
The principles of agility and learning velocity are not abstract – they are playing out across ASEAN in real time. Governments are investing heavily in helping SMEs adopt technology, but the outcomes reveal a critical truth: without upskilling, tech investments plateau. Workforce capability – the ability to learn, adapt, and act swiftly – is a crucial differentiator.
Singapore’s own SkillsFuture initiative, Vietnam’s expected shift toward skills-based hiring, Malaysia’s grant-backed digital push, and Thailand’s tax incentives for employee training all signal the same message: SMEs that prioritise skills alongside technology are best positioned to scale. In Indonesia, where SMEs employ the majority of the workforce, it was reported that digital adoption stalled due to the lack of employer-backed training.
For SME leaders, the takeaway is clear: businesses that combine technology with an agile, capable workforce are best positioned to respond to disruption, seize opportunities, and expand with confidence.
The return on training increasingly outpaces the return on tech investment in the digital age. A workforce fluent in digital skills can generate outsized returns from even modest tools. Conversely, the most advanced platforms deliver negligible ROI if underutilised.
Think of training as compounding interest. The earlier and more consistently SMEs invest, the greater the payoff over time. Those who delay will find the cost of catching up far exceeds the upfront price of continuous learning.
The path forward is clear for SMEs. Stop treating training as optional, or worse, as a drain on resources. Start recognising it as the essential tender that fuels every aspect of competitiveness.
Technology creates opportunities, but only the right skills can maximise their potential. In a marketplace defined by rapid change, upskilling is an important currency that retains its value — and one that ensures SMEs can buy their future.
Shannon Lung, Head of UOB FinLab and Ecosystem Partnership
Sustainability reporting isn’t just compliance, it’s a growth strategy. It builds trust, wins bigger customers, and drives efficiency. The UOB FinLab helps SMEs start small and scale through its community and programmes, including the SME Elevate Programme and the Sustainability Innovation Programme (SIP).
The GreenTech Accelerator Thailand drives sustainability through pilots in energy, waste, agriculture, and building maintenance—delivering cost savings, improved recycling, reduced resource use, and AI-driven efficiency for measurable environmental impact.
UOB FinLab helps SMEs turn sustainability intent into measurable outcomes — from cost savings to emissions reduction — by bridging the gap between awareness and action.
Designed for business owners to enhance their digital capabilities through practical learning, this programme takes businesses to the next level.
Designed for business owners to enhance their digital capabilities through practical learning, this programme takes businesses to the next level.
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