8 Best ERP for SMBs in Malaysia in 2023-2024

Looking to improve your small or medium-sized business (SMB) in Malaysia? Consider implementing an ERP for SMBs in Malaysia.

In this post, we’ll discuss the best ERP for SMBs in Malaysia and provide tips and advice for selecting the best solution for your business.

By the end, you’ll see how ERP can help your SMB thrive in the competitive Malaysian market.

1. Dynamics 365 Business Central

Microsoft Dynamics 365 Business Central is an ERP business management solution for small and medium-sized businesses that are looking to centralize their operations and data into one streamlined ERP solution. Business Central offers over 14 functionalities such as financial, sales, purchasing, inventory, warehouse, project, CRM, manufacturing, and service management modules under two pricing plans giving customers affordable, yet robust solutions for all their needs.

Why Should You Choose Business Central?

Microsoft Dynamics 365 Business Central is one most recommended ERP systems for SMBs around the world, used by SMBs and subsidiaries of large businesses. Here are some reasons why you should consider choosing Business Central:

• Start Small: With Business Central you can start small and only implement the mandatory financial management module with only one full user and then you can add more modules as your company grows or feel more comfortable with Business Central.
• 3^rd Party Integration: Business Central allows you to connect your third-party apps and centralize your operations and data into one solution, giving you a 360-degree view of your business as well as increasing productivity, removing human errors, and saving time.
• Very Flexible: Business Central is a very flexible solution in terms of customization. The solution can be customized to meet more complex or unique business processes. Also, the solution allows easy drag and drop customizing the workspace of each user, so every user have the solution set up as they like or need.
• Highly Scalable: Business Central is a highly scalable solution ensuring that the ERP system can handle your growing business. Additionally, it can be easily migrated to more complex Microsoft ERP solutions such as Dynamics 365 Finance and Dynamics 365 Supply Chain Management.
• All-in-one ERP: Business Central is an all-in-one business management solution that can replace many different solutions with one app. It provides functionalities across a vast number of business functions such as finance, sales, customer service, operations, warehouse, supply chain, manufacturing, projects, and more.
• Flexible Deployments: Business Central is a native cloud solution, but it has the flexibility to be implemented as an on-premises or hybrid solution.
• Microsoft Look & Feel: Many organizations find Business Central great as a user-friendly solution thanks to the look and feel of Microsoft solutions. It follows the well-known Microsoft style of applications from Microsoft 365 apps. This makes it easier to be adopted by users and organizations.
• Native Microsoft Products Integrations: Business Central integrates seamlessly with other Microsoft products, such as Microsoft 365, Power Platform, and Dynamics 365, enabling you to leverage the full capabilities of the Microsoft ecosystem.
• Advanced Functions: Microsoft technologies such as AI, IoT, Machine Learning, Predictive Analytics, Automation, Business Intelligence, and others are leaders in its industries and are included with Business Central, allowing SMBs to access the latest technologies to stay competitive at affordable prices.

Overall, Business Central is an excellent solution that enables companies to access advanced technologies, and customize it to their needs, it grows with the company and because you can start small, it’s also an affordable ERP solution for SMBs in Malaysia.

Who is Business Central Best Suited For?

Dynamics 365 Business Central is a versatile solution that is particularly well-suited for small to medium-sized companies (25-300 employees) looking for a comprehensive all-in-one ERP business management solution that includes advanced financial management capabilities.

In addition to financial management, Business Central offers various features such as supply chain management, customer relationship management, manufacturing management, sales and service management, and project management, making it an all-in-one solution for managing various aspects of a business.

This integrated approach enables businesses to streamline their operations, increase efficiency, and make informed decisions based on real-time data.

Business Central is not suitable for businesses that are looking for standalone inventory or warehouse management, MRP, HRM, or similar solutions.

Businesses that choose Business Central must implement the financial management module, as it is the core of the solution and provides the foundation for other modules such as inventory, warehouse, purchasing, supply chain management, sales & service, manufacturing management, etc.

To learn more visit

• Dynamics 365 Business Central vs SAP Business One.
• Best Manufacturing ERP Systems in Malaysia

2. SAP Business One

SAP Business One, is a comprehensive business management software tailored to meet the needs of small and medium-sized enterprises. It offers automation of vital business functions such as financials, operations, inventory management, and human resources.

This all-in-one solution is designed to make managing a small business a breeze. With functional modules for finance, customer relationship management, warehouse and production management, purchasing and procurement, and reporting and analytics, this software is a great choice for SMBs businesses looking to streamline their operations.

SAP Business One boasts scalability, customization options, and a user-friendly interface. For more information check out SAP Business One alternatives.

Why Should You Choose SAP B1?

SAP Business One ERP software is commonly used around the world including in Malaysia helping businesses to manage and streamline their business operations. Here are some reasons why you should choose SAP B1:

• All-in-one ERP Solution: SAP B1 provides a complete business solution for SMBs with modules such as financial management, supply chain management, CRM, human resources management, and others.
• Mature Product: SAP B1 is used by companies around the world with advanced technologies included within making it a proven and reliable solution for businesses around the world including Malaysia.
• Relatively Quick Deployment: This solution can be relatively quickly implemented and deployed for businesses. The simpler SAP B1 projects can only take around 1-2 months.
• Centralized Operation: By implementing SAP B1 you will need to purchase at least 10 modules. This way you will be able to centralize all of your business operations and manage them from a single platform.
• Highly Customizable: SAP B1 can be customized to your business needs including creating custom workflows and processes.
• Custom Reporting: SAP B1 Includes Crystal Reports for custom reporting, enabling you to create tailored reports specific to your business needs. With Crystal Reports, you can extract and analyze data from various sources and present it in a format that suits your requirements.

Overall SAP Business One is a great ERP software for SMBs in Malaysia thanks to the large number of modules and functionalities, local support, and years of experience in the market of ERP for SMBs.

Who is SAP B1 Best Suited For?

SAP Business One (SAP B1) is best suited for small to medium-sized businesses (SMBs) with 500 or fewer employees that require a comprehensive solution to manage all aspects of their business while also improving productivity and efficiency and are ready to replace a lot of their current systems with SAP B1 as they will be required to implement at least 10 modules.

It is particularly well-suited for industries such as retail, wholesale, distribution, and professional services. SAP B1’s inventory management capabilities make it an ideal solution for businesses that need to track and manage their inventory effectively.

Additionally, SAP B1 is highly customizable, allowing businesses to add custom applications or integrations to fit their specific needs.

SAP Business One is not for organizations that are looking to change systems only for parts of their operations such as warehouse or inventory, financials, supply chain, manufacturing, etc. as you will need to implement at least 10 modules to use SAP Business One.

3. Oracle NetSuite

NetSuite ERP software was one of the first solutions on the market, exclusively targeting small and mid-size businesses. Oracle NetSuite is a sophisticated cloud-based ERP software that is specially crafted to offer businesses advanced financial management, e-commerce, inventory management, and CRM tools.

With NetSuite, businesses can streamline their operations, automate various tasks, increase productivity, and gain real-time visibility into their financial and operational performance.

This intelligent cloud-based software can be accessed from any device with an internet connection and has the capability to integrate with other software tools and applications, thus making it a perfect fit for businesses of all sizes.

Why Should You Choose NetSuite?

NetSuite is a true cloud ERP solution developed in the late 1990s and since then, it was built with small-medium size businesses in mind. That’s why Oracle NetSuite provides many good reasons why businesses in Malaysia may choose NetSuite as their ERP solution:

• Standardization: NetSuite has many great standard workflows and standard business processes that help small, high-growth companies to quickly scale and move away from spreadsheets and basic accounting solutions.
• Great Financial Management: NetSuite is considered a pretty big step up from basic accounting solutions and excel spreadsheets with advanced financial management functionalities such as multi-currency support, real-time financial reporting, and budgeting and forecasting capabilities.
• Native Cloud: Very advanced and mature in cloud technology since it has been developed as a native cloud ERP solution.
• Great Entry Point: NetSuite is a great entry point to the world of ERP that allows SMBs in Malaysia to level up their operation with a more complex and robust system.
• User-Friendly Interface: NetSuite offers a user-friendly interface that is easier to learn and adapt to organizations allowing businesses to see ROI faster compared to more complex solutions.
• Fast Implementation: NetSuite can be relatively quickly and easily implemented, making it an attractive option for businesses that are new to ERP software.
• All-In-One ERP Software: NetSuite provides a wide range of features and functionalities that can help businesses streamline their operations, from accounting and financial management to inventory management, order fulfillment, and more.
• Analytics & Reporting: By implementing NetSuite, businesses can gain real-time visibility into their operations and make more informed decisions based on data insights.

Who is NetSuite Best Suited For?

NetSuite is best suited for small and medium-sized businesses that are transitioning from spreadsheets or QuickBooks and seeking standardized ERP software that is relatively easy to use with quick implementation. If you are willing to adapt your business processes to how the ERP system works, then it is an excellent option.

It is particularly useful for businesses looking to standardize their operations and that do not have complex or unique business processes in the back office.

NetSuite provides many standard workflows that can help businesses scale and standardize their operations quickly. However, it has limited options for customization.

NetSuite is not suitable for complex businesses with requirements to customize the software to their unique or complex business processes, or you really value flexibility and customization. To learn more check out NetSuite alternatives.

4. Sage X3

Sage X3 is an all-in-one ERP solution that streamlines business operations and helps companies make informed decisions. This comprehensive ERP software centralizes control over finance, supply chain, manufacturing, and human resources processes, offering real-time insight into key metrics.

Sage X3 is designed for small to mid-sized businesses, particularly in the manufacturing, distribution, and product-centric sectors.

Sage X3 is a perfect upgrade when you are outgrowing accounting software like QuickBooks or SQL Accounting yet does not require more complex solutions such as Oracle, SAP, or Infor. Its scalable architecture can be relatively customized to fit the unique needs of any business and evolves with the company’s growth.

Why Should You Choose Sage X3?

If you’re looking for an ERP solution for your business, you may want to consider Sage X3. Here are some reasons why it could be the right choice for you:

• Lower cost to implement: One of the main advantages of Sage X3 is its lower cost to implement compared to other larger ERP systems. This means that you can get up and running quickly without breaking the bank.
• Less complexity which means less time to implement: Sage X3 is a more straightforward solution compared to other larger ERP systems, which means that it takes less time to implement. This can help you get your business up and running more quickly and with fewer headaches.
• Industry-specific functionality: Sage X3 offers industry-specific functionality for a variety of industries, including manufacturing, distribution, and services. This means that the solution can be tailored to meet the specific needs of your business and industry, providing you with the tools and functionality you need to be successful.
• Lower risk of implementing: Because Sage X3 is a more straightforward solution, there is also a lower risk of implementing it. You’re less likely to run into complications or unexpected issues during the implementation process.
• Relatively easy to maintain the system: Sage X3 is designed to be easy to maintain, with straightforward updates and upgrades. This means that you can keep your system running smoothly without a lot of extra work or expense.
• Simpler, more cost-effective, and flexible alternative to the larger ERP systems: If you’re looking for an alternative to the larger ERP systems, Sage X3 could be a great option. It’s simpler, more cost-effective, and more flexible, making it a great choice for businesses of all sizes.

Overall, Sage X3 is a great ERP solution that offers a range of benefits, including lower costs, less complexity, and easier maintenance. If you’re looking for a simpler, more cost-effective, and flexible alternative to larger ERP systems, Sage X3 could be the right choice for you.

Who is Sage X3 Best Suited For?

Sage X3 is a suitable ERP software for mid-market companies operating in the manufacturing and distribution industry, with fairly complex supply chain and manufacturing needs. It is designed for companies that have outgrown QuickBooks or SQL accounting but are not quite large enough to require the cost and complexity of more robust ERP systems such as Microsoft Dynamics 365, SAP, or Oracle.

However, for larger companies with more complex supply chains, financial management, or operational processes, Sage X3 may not be the best fit. Its features and capabilities may not be able to meet the unique and complex needs of larger and global companies. Therefore, if you fall into this category, it is best to explore other ERP solutions that are better suited to your business requirements.

5. Odoo

Odoo is an open-source ERP software that streamlines business operations, including accounting, inventory management, and project management. Founded in 2005 and headquartered in Belgium, Odoo is highly customizable, allowing businesses to choose specific modules and tailor the software to their needs.

Odoo is used by small startups to large enterprises across multiple industries, such as manufacturing, retail, and professional services. The software is designed to be user-friendly, featuring a modern, intuitive interface to enhance operational efficiency.

Why Should You Choose Odoo?

Odoo is mainly built for small-medium enterprises that are searching for module-based open-source ERP systems with a wide range of features and functionalities to help you streamline, automate and simplify various business processes.

Here are some reasons why you should choose Odoo:

• Very affordable: Odoo offers cost-effective pricing plans and a free version that makes it accessible to businesses of all sizes.
• Open Source: Odoo is open-source software, which means it’s free to use and customizable, and users have access to a large community of developers.
• Free version: Odoo offers a free version with basic features that can be upgraded as your business grows.
• Easy to implement: Odoo is easy to implement and use, with a user-friendly interface and drag-and-drop customization feature.
• Very modular based: Odoo is modular, allowing users to choose only the modules they need for their business operations, avoiding unnecessary expenses.
• Integration: Odoo integrates with a wide range of third-party software and services, making it easy to manage all aspects of your business from one platform.
• Customization: Odoo is highly customizable, allowing businesses to tailor it to their specific needs.

In general, Odoo is an excellent choice for small companies in Malaysia, thanks to its affordable pricing, high level of flexibility for customization, and a broad range of functionalities.

Who is Odoo Best Suited For?

Odoo is an excellent modular-based ERP and CRM solution for small companies in any industry that are looking for a simpler and affordable ERP solution with the ability to easily customize and integrate it with other third-party solutions.

The solution is made for companies that are not planning to quickly grow or scale as the system does not meet the needs of high-growth companies or with more complex needs in any business processes.

Additionally, the system is easy to use enabling companies to quickly adapt and streamline their business processes. With its comprehensive features, Odoo can cater to various business needs such as accounting, inventory management, project management, e-commerce functionality, and more.

Odoo may not be suitable for small to medium-sized companies that have high growth or high transaction volumes, or those that require a scalable solution with more advanced features to support their business operations. Additionally, businesses with more complex business processes may find that Odoo does not provide enough functionalities options to fully meet their needs.

6. Pronto Xi

Pronto Xi is a business management ERP software solution designed to streamline business operations and enhance productivity. Developed by Pronto Software, an Australian company that specializes in creating software solutions for businesses, Pronto Xi serves as a highly regarded as ERP for SMBs.

Its extensive range of features and capabilities includes financial management, supply chain management, manufacturing, project management, business intelligence, and CRM, among others. What sets Pronto Xi apart is its industry-specific functionality, particularly in areas such as manufacturing, distribution, and logistics.

With a focus on small to medium size businesses, Pronto Xi is a customizable software that offers generous options for businesses to tailor it to their specific needs.

Why Should You Choose Pronto Xi?

Pronto Xi is the flagship of the company offering numerous benefits to organizations in Malaysia. Here are some reasons why you should choose Pronto Xi:

• Good Value for Money: Pronto Xi offers a great return on investment, providing you with a cost-effective solution with a large number of features that can help you save money on operational costs and increase revenue.
• Affordable ERP: Pronto Xi is an affordable ERP solution that is accessible to businesses of all sizes, from small startups to medium size enterprises.
• Comprehensive Functionality: Pronto Xi provides a comprehensive suite of integrated modules that cover all aspects of business operations, including finance, manufacturing, distribution, sales, and customer management. This enables businesses to manage all their core operations from a single platform.
• User-friendly Design: Pronto Xi has a user-friendly interface that is easy to navigate, even for users with limited technical knowledge. This makes it easy for businesses to onboard new employees and reduce training time.
• Industry-Specific ERP: Pronto Xi does particularly well with smaller manufacturing companies that are not ready to invest in large ERP, but want access to modern technologies to help them run their business.
• Great Business Intelligence: Pronto offers an integrated business intelligence platform that includes advanced analytics and reporting capabilities that allow you to track key performance indicators and identify areas for improvement.

Overall, Pronto Xi is a popular ERP software solution among small and mid-sized organizations, especially in the manufacturing industry in Malaysia. It is considered a value-for-money ERP solution that can be easily customized and maintained, while also providing access to modern ERP technologies.

Who is Pronto Xi Best Suited For?

Pronto Xi is particularly suitable for smaller manufacturing companies that are not yet ready to invest in full-fledged tier 1 or higher tier 2 ERP software. It offers ease of use and implementation, a wide range of functionalities, and good scalability as the company grows and operations become more complex.

However, Pronto Xi may not be suitable for businesses that require more complex financial, inventory, warehouse, or manufacturing management. It may also not be suitable for businesses with complex operations or processes that require customization to meet their unique needs and processes.

7. Epicor Kinetic

Epicor is a business software company that provides modular, industry-specific ERP solutions to manage business processes company-wide. Its software products cover accounting and finance, human resources, customers, the supply chain, inventory, distribution, and manufacturing production management.

Epicor offers both on-premises and cloud ERP deployment models, including hybrid, multi-tenant, and single-tenant options. The company supports a wide range of industries and vertical markets with industry-specific software, including manufacturing, distribution, retail, and services. Epicor was founded in 1972 and is based in Austin, Texas.

Why Should You Choose Kinetic?

Epicor Kinetic is popular ERP solution for SMBs in Malaysia and by choosing Kinetic, you can benefit from a range of powerful features and capabilities, including:

• High Focus on SMBs: Epicor Kinetic is developed specifically for small to medium-sized businesses (SMBs).
• Highly Focused on Particular Industries: Epicor Kinetic is particularly focused on serving the needs of companies in the manufacturing, distribution, and retail industries.
• Multiple Deployment Options: The solution offers both on-premises and cloud-based deployment options, giving you the flexibility to choose the one that best fits your needs. Additionally, if you decide to switch from one deployment option to another, you can easily migrate your data.
• Low Code Platform: Epicor Kinetic’s low code platform allows for easy customization without affecting the latest updates or product functions. This gives you the best of both worlds – flexibility to customize without sacrificing the product’s core functionality.
• Low Cost: Epicor Kinetic can be implemented with less time, money, and risk than many other ERP solutions on the market. This translates into high value for customers, who can realize value sooner rather than later.

Who is Kinetic Best Suited For?

Epicor Kinetic is especially well-suited for small to medium-sized companies, with a particular emphasis on medium-sized companies in the manufacturing, distribution, or retail industries. If you belong to any of these industries, Epicor Kinetic can be an excellent fit for your business. This is because Epicor Kinetic doesn’t try to be everything to everyone, but rather focuses on meeting the needs of these specific types of companies.

However, if your business falls outside of these industries or if your company size is not within the small to medium range, then Epicor Kinetic may not be the best option for you.

Additionally, if you are looking for an ERP solution with better CRM features such as sales force automation, customer service management, or other advanced features, then Epicor might not be the best fit for your business.

Similarly, human resource management is not one of Epicor’s strong points, so if this is a critical area for your business, you may want to consider other ERP solutions.

8. Acumatica

Acumatica is a cloud-based ERP software that offers a complete suite of financial and business management tools for small and mid-sized businesses. With a range of modules including accounting, customer management, distribution, and project management, all easily accessible through a single platform, Acumatica is designed to help companies streamline their operations, make informed decisions, and improve efficiency. Also check out Acumatica alternatives.

Why Should You Choose Acumatica?

Acumatica is a cloud-based ERP solution that provides businesses with a wide range of features to manage their operations effectively. Here are some reasons why you should consider choosing Acumatica:

• Focused on Manufacturing and Distribution: Acumatica is designed to meet the specific needs of manufacturing and distribution businesses, with features and functionalities tailored to support these industries. This focus can help businesses optimize their operations and increase their efficiency.
• Great for Low Volume High Margin Manufacturing: Acumatica is an excellent choice for businesses that engage in low volume high margin manufacturing, as it can help manage the complexities of this type of production. It can help track costs, optimize inventory, and streamline production processes.
• Clear User Interface: Acumatica has a clear and intuitive user interface that makes it easy for users to navigate and use the system. This can help reduce the learning curve and improve user adoption, leading to faster implementation and increased productivity.
• Easy to Learn: Acumatica is designed to be user-friendly and easy to learn, even for users who have little to no experience with ERP software. The system provides clear instructions, tutorials, and documentation to help users get started quickly and efficiently.
• Affordable Pricing: Acumatica offers affordable pricing that is based on transaction volume and provides unlimited user access. This pricing model makes it easy for businesses to scale their usage as their needs grow, without incurring additional costs for adding more users or transactions. This can help keep costs low and improve overall ROI.
• Integration Capabilities: Acumatica can be integrated with a variety of third-party applications and systems, making it easy to connect with your existing tools and workflows.
• Strong Partner Network: Acumatica has a strong partner network in Malaysia that provides implementation, customization, and support services to help you get the most out of the platform.

Overall, Acumatica is becoming a very popular ERP system for SMBs in Malaysia in the manufacturing space.

With its flexible and scalable nature, cloud-based accessibility, multi-company management, integration capabilities, mobile accessibility, and affordable pricing model, Acumatica is an ideal solution for small and medium-sized businesses in Malaysia’s manufacturing industry.

Who is Acumatica Best Suited For?

Acumatica is a cloud-based ERP solution that is well-suited for small and medium-sized companies in the manufacturing and distribution industry, particularly those with low to medium transaction volume but high-profit margins. Acumatica’s pricing model is based on transactions, with unlimited users, which can be cost-effective for these types of businesses.

In addition, Acumatica is suitable for manufacturing companies that are looking for flexible and affordable ERP solutions that are easy to implement, learn and use for their business.

However, it may not be the best fit for companies outside these industries, or manufacturing companies with high-volume transactions but low margins. Additionally, high-growth companies that are expected to scale rapidly may find that Acumatica does not provide enough options to scale the system accordingly.

Definition of SMB in Malaysia

This article defines SMBs (Small and Medium-sized Businesses) in Malaysia as companies with annual sales revenue between RM 5 million and RM 50 million and a workforce of 25 to 250 employees. Based on these criteria, we have compiled a list of the best ERP solutions for SMBs that are specifically built for this segment and feature capabilities tailored to the needs of companies in Malaysia. Learn more how to evaluate ERP and how to evaluate erp vendors.

In addition, these ERP solutions are scalable and flexible, meaning they can adapt to the changing needs and growth of SMBs. They also offer cost-effective pricing plans, making them accessible to smaller businesses with limited budgets.

Summary of Best ERP for SMBs in Malaysia

Small and medium-sized businesses (SMBs) in Malaysia require ERP systems to streamline their operations. Some of the top ERP systems that cater to SMBs in Malaysia include Microsoft Dynamics 365 Business Central, SAP Business One, Odoo, Oracle NetSuite, and Sage X3.

When you are selecting an ERP system, SMBs in Malaysia like yourself should consider your specific business needs, company size, budget, industry, and customization requirements. It is recommended to work with an ERP implementation partner to determine the best fit for the business.

FAQs of ERP for SMBs in Malaysia

Get a Free Dynamics 365 Business Central Demo in Malaysia

Agile Dynamics Solution is the #1 Malaysian vendor providing ERP solutions to SMBs. They specialize in Dynamics 365 Business Central, an all-in-one ERP system offering financial, supply chain, inventory, and project management capabilities developed by Microsoft for SMBs.

They tailor the system to specific needs and offer a free demo. Contact Agile Dynamics Solution to learn how they can help streamline operations, improve efficiency, and drive growth for your business.

Relevant Resources:

• What is ERP (Enteprise Resource Planning System)?
• What is Dynamics 365?
• What is Dynamics 365 Business Central?
• Benefits of ERP
• How Does ERP Works?
• What Are ERP Modules?
• Best Manufacturing ERP Systems in Malaysia