By Aileen Anthony
Zoho, founded in 1996 in Chennai, India, has grown to a workforce of over 18,000 employees, with offices in more than 30 countries and data centres across 14 global locations, including the US, Europe, China, Singapore, and Australia.
Speaking against the backdrop of Zoho’s global journey and its deep commitment to local markets, Mathew underscored a central message, that AI is no longer a distant concept; it is a productivity multiplier that Malaysian businesses cannot afford to ignore.
A Company Built for Change
To frame the conversation, Mathew reflected on Zoho’s own trajectory. “We started building software for other software companies,” he explained. “Nearly 30 years on, we’ve built over 55 business applications, serve 900,000 organisations globally, and have remained profitable from day one.”
That resilience, he mentioned, is rooted in Zoho’s philosophy of building technology from the ground up, keeping ownership of its infrastructure, and staying private to avoid short-term pressures.
“Being private means we innovate on behalf of our customers. We adapt when industries shift. We’ve survived the Y2K bubble, the financial crisis, COVID-19 and now, we’re seeing a new wave with AI.”
Malaysia at the Digital Crossroads
Malaysia, he said, stands at an inflexion point. The local software-as-a-service (SaaS) market was valued at approximately US$1 billion in 2024 and is projected to reach US$2.6 billion by 2030. “This growth is being driven by a workforce that is already digital-native,” Mathew noted.
“The new generation of employees has grown up on platforms like TikTok and Facebook, powered by machine learning algorithms. They expect their workplace to reflect the same digital fluency.”
Zoho has been investing in Malaysia’s ecosystem, and one such initiative is the collaboration with Cradle Fund’s MyStartup platform to roll out Zoho for Startups programme. Startups receive up to RM18,000 worth of Zoho products, easing their entry into structured, tech-enabled business operations. “We’ve supported more than 18,000 startups globally through this initiative,” Mathew said. “In Malaysia, we want young businesses to begin with best practices built into their systems from day one.”
The AI Imperative for SMEs
Yet the actual pivot in Mathew’s sharing was AI. “For the first time, technology is upending the plans of software companies themselves,” he said. “AI will reshape how every business function operates. For SMEs in Malaysia, it is not about whether to adopt AI, but how to adopt it responsibly.”
He acknowledged the concerns voiced by SMEs during Zoho’s recent customer conference , where AI dominated the discussion. “People asked, Will AI take my job? How do I know my data is safe? What does this mean for my business in five years?” Mathew said. “Our answer is, AI is a productivity booster, not a replacement. But businesses must ensure data privacy, compliance, and context if they want to use it effectively.”
The risks, he explained, are real. “Data governance is the biggest hurdle. If employees are pasting confidential information into public AI tools, compliance is at risk. That’s why our approach is to embed AI contextually inside the products businesses already use, so the data remains within their environment.”
Zoho’s Multi-Pronged AI Strategy
Mathew unveiled three major announcements that illustrate how AI will reshape workplace tools over the next five years, and Zoho’s role in helping businesses transcend :
Zia LLM – Zoho’s proprietary large language model (LLM). “We integrated public LLMs early on, but enterprises need visibility and trust in how decisions are made. That’s why we built Zia LLM from scratch,” Mathew explained. “It’s designed for privacy. We don’t have an ad-driven business model. Customer data is sacrosanct.”
Agentic AI with Zia Hubs – Beyond chatbots, Zoho is enabling systems that can analyse diverse content such as video and audio. “Imagine uploading a library of your CEO’s town hall recordings. You could ask, ‘What did the CEO say about branding in Mexico in 2025?’ and the system finds the exact clip,” Mathew said. “This is about putting AI to work inside your own organisational data.”
CRM for Everyone – A reimagining of customer relationship management. “AI is only as good as the context it has. By bringing marketing, sales, legal, and order management all into the same system, AI can give far more accurate, actionable insights,” Mathew said. “For SMEs, this means decision-making becomes faster and better informed.”
Practical Adoption for Malaysian SMEs
In responding to a question from a MALAYSIA SME regarding the verticals that ZOHO serves, Mathew acknowledged the challenges SMEs face, especially in traditional sectors such as manufacturing. Many have operated for decades without digital systems, making the migration daunting.
“Older SMEs often ask, How do we even start?” he said. “That’s where we and our partners come in. We help migrate legacy data. For instance, moving from on-premises email to Zoho Mail. We provide free migration tools. Our partners across Malaysia, from Penang to Sarawak, work directly with SMEs to ensure the transition is smooth.”
He added that professional services firms—such as legal, consulting, accounting, and IT services—currently form the most extensive base of SME users. But he emphasised that SMEs in other sectors must not be left behind. “Technology is no longer a nice-to-have. With AI, the cost of waiting is higher than the cost of starting.”
Affordability and Access
Cost, historically a barrier for SMEs, is being addressed directly. “We’ve introduced local currency pricing in Malaysia so that SMEs don’t suffer from currency fluctuations,” Mathew said. “Our products are priced competitively—Zoho Workplace, for example, starts at RM13 per user per month.”
Zoho’s freemium model further lowers the entry barrier. “Every one of our 55-plus apps has a free edition. Some customers have used Zoho for free for 10 years. We’re fine with that. Many of our strongest growth stories have come through word of mouth.”
A Measured Approach to AI
Unlike competitors racing to monetise AI features, Zoho is intentionally taking a measured approach. “Over the last 18 months, a trillion dollars has been poured into AI,” Mathew remarked.
“Vendors are raising prices, but we are not. We believe that AI is integral to every business application. You shouldn’t be charged extra for it.”
That pragmatism, he argued, will be key for SMEs over the next five years. “There’s much hype, but also much uncertainty. We are still in the early days of AI. Our advice to SMEs is to avoid chasing every new tool. Focus on embedding AI where it makes you more productive, more contextual, and more competitive.”
AI as the Foundation of Malaysia’s Digital Economy
Looking ahead, Mathew stressed that AI adoption among SMEs will be critical for Malaysia’s broader digital economy.
“SMEs form the backbone of the Malaysian economy. If they adopt AI, we can expect to see new jobs, stronger exports, and increased productivity. If they don’t, the gap between them and larger enterprises will only widen.”
He illustrated a picture of the next five years where AI becomes invisible, embedded in everyday processes. “An SME owner might ask their CRM, ‘What revenue came from our March campaign in Sarawak?’ and instantly get contextual, team-specific data. That’s the future we are building towards. AI will not be a separate tool; it will be part of how work gets done.”
Urgent but Optimistic
Mathew’s message is urgent but optimistic. “AI is not something to fear. It is a massive productivity booster waiting to be harnessed. But SMEs must act now. Waiting for perfect clarity means being left behind.”
Zoho’s own path, profitable, private, and adaptable, serves as a case study for SMEs learning to thrive amidst waves of disruption. “Business models are changing every three to six years,” Mathew concluded. “With AI, the pace is faster still. SMEs must innovate continuously. That’s how they will thrive in the digital economy of Malaysia.”
