Data-Driven Decision Making:
Why Malaysian Companies Still Struggle
As Malaysia is transitioning to a digital-centric practice, data plays a pivotal role in business decision-making. Using true data and information makes a difference in a company’s productivity and growth. Research shows that more accurate analysis from quality data leads to more confident decision-making, which can mean greater operational efficiency, reduced risk, and cost reduction to business.
However, we see that Malaysian companies are struggling to adapt to data-driven decision making. These are some reasons why:
The hierarchical nature of many Malaysian organizations can hinder data-driven approaches. Decision-making often flows from seniority and experience rather than empirical evidence, which can create resistance when data contradicts established practices or senior opinions. There’s also the challenge of a “face-saving” culture where admitting mistakes revealed by data becomes difficult.➊
A 2025 study on Malaysian organizational change notes that the culture is influenced by collectivist values, where harmony and respect for authority shape workplace interactions, potentially creating challenges when data contradicts established practices.➋
Many Malaysian companies face a shortage of data analytics talent. Even when data is available, employees across levels often lack the literacy to interpret it correctly or the statistical knowledge to distinguish correlation from causation. This creates a situation where companies invest in tools but can’t extract meaningful insights.
According to Edstellar’s 2026 report, 48% of Malaysian companies face talent shortages, with challenges most acute in professional, IT, and managerial roles. By 2030, Malaysia will need at least 20,000 data professionals and 2,000 data scientists to meet industry demands.➌
Infrastructure and Technology LimitationsSMEs, which form the backbone of Malaysia’s economy, often operate with fragmented systems where data sits in silos—sales data in one system, inventory in another, customer information elsewhere. The cost of integrating these systems or implementing proper data warehousing can be prohibitive for smaller players.
A 2025 survey conducted at the International Invention, Innovation and Technology Exhibition found that 24.2% of Malaysian SME professionals regard knowledge silos as stifling collaboration and slowing business.The pressure for immediate results can undermine data-driven approaches that require time to collect, analyze, and test. Companies may revert to gut feeling when quarterly targets loom, especially when data suggests strategies that take longer to bear fruit.➍
Trust and Fear of TransparencyData-driven decision making requires transparency, which can be uncomfortable. When performance metrics become visible across departments, it may expose inefficiencies that some stakeholders prefer to keep hidden. There’s also fear that automation and data analytics might threaten job security.
A 2024 analysis by MoreThanDigital Insights identified that cultural barriers within organizations prevent data-centric mindsets from taking hold, requiring leadership commitment to overcome resistance.
Regulatory and Privacy ConcernsWith Malaysia’s Personal Data Protection Act and evolving compliance requirements, some companies become overly cautious about collecting and utilizing data, missing opportunities for legitimate business insights.
Watch this space as we share more insights on building effective, data-driven organizations through practical, real-world perspectives.
➊ Managing In Malaysia – Management Style & Workplace Culture
➋ Navigating Organisational Change: Middle Managers’ Sensemaking Practices in a Malaysian Organisation – International Journal of Research and Innovation in Social Science
➌ Top 8 In-Demand Skills in Malaysia for 2026 | Edstellar
➍ Managing In Malaysia – Management Style & Workplace Culture