SMEs (Small Medium Enterprises) in Malaysia play an essential role in the Malaysian economic growth. ERP (Enterprise Resource Planning) system can be one of the tools to increase their effectiveness and competitiveness in global market. The aim of an ERP system is to improve the efficiency of the whole business operations in an organization and increase the optimal returns. Most SMEs cannot afford to adopt an existing ERP system due to the extremely high cost and complex implementation of the system. This paper will discuss the future market for SMEs in Malaysia, the issues in adopting ERP and the requirement and characteristic of the ERP system in Malaysian SMEs. Surveys and field study will be conducted in this research work to assess the Malaysian SMEs perspective on ERP. From the findings, we will then propose a model of an ERP system appropriate for SMEs.

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