Upskilling: An Important Currency That Buys SMEs a Future in the Digital Age

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.

Why Skills Define Competitiveness

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.

The Hidden Costs of Underinvesting in People

Many SMEs hesitate to prioritise upskilling because of three familiar pain points: time, money, and lack of guidance.

Time: Training takes employees away from daily operations. For lean teams, this feels impossible.
Money: Upskilling requires investment that could otherwise go into digital marketing, research or product development.
Lack of guidance: Many SME leaders simply don’t know where to start. What skills do their teams need most — data analysis, digital marketing, AI integration?

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.

The Skills That Matter Most

What should SMEs be “minting” in this new economy of skills? Three skillsets stand out as particularly valuable in today’s digital age:

Data Analysis and Interpretation: Tools can collect data, but only humans can contextualise and apply insights for better decisions. Analytical skills enable SMEs to optimise market entry, pricing strategies, and customer segmentation. LinkedIn’s 2024 Workplace Learning report showcased a growing emphasis on analytical skills. For example, 54% more Learning & Development professionals have added analytical skills to their profiles year-on-year, reflecting the rising demand for this capability.
Tech-Ready Mindset: The half-life of skills is shrinking. Success depends less on mastering today’s tools and more on being open to learning tomorrow’s. A 2023 edX survey revealed that executives estimated that 49% of 2023 skills would be irrelevant by 2025, underscoring the need for mindset agility. Employees who are comfortable experimenting, integrating new technologies, and adapting to shifts can drive platform integration, regulatory compliance, and innovation.
Human-Centric Skills: Emotional intelligence, creativity, and communication remain irreplaceable. These skills support brand building, customer retention, and leadership agility, helping SMEs differentiate in a world where machines increasingly handle routine tasks. Deloitte Insights reported that 92% of executives believe durable, human skills are as or more important than technical skills in the current business environment.

The Highest Denomination of Skill

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.

Strategic Signals from Across ASEAN

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.

Training as Ongoing Investment, Not Expense

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.

Moving Forward

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

“Upskilling: buying SMEs a future in the digital age“ is published on SME Horizon on 2 December 2025.

Upskilling: An Important Currency That Buys SMEs a Future in the Digital Age

Upskilling: An Important Currency That Buys SMEs a Future in the Digital Age

Why Skills Define Competitiveness

The Hidden Costs of Underinvesting in People

The Skills That Matter Most

The Highest Denomination of Skill

Strategic Signals from Across ASEAN

Training as Ongoing Investment, Not Expense

Moving Forward

Upskilling: An Important Currency That Buys SMEs a Future in the Digital Age

Online programme

Start Smart Programme

Upskilling: An Important Currency That Buys SMEs a Future in the Digital Age

Why Skills Define Competitiveness

The Hidden Costs of Underinvesting in People

The Skills That Matter Most

The Highest Denomination of Skill

Strategic Signals from Across ASEAN

Training as Ongoing Investment, Not Expense

Moving Forward

Upskilling: An Important Currency That Buys SMEs a Future in the Digital Age

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