ERP stands of Enterprise Resource Planning. It’s fast replacing old systems across many sectors. This is due in part to ERP system can be used in a way that is simple as well as cost effective and more versatile. What is Enterprise Resource Planning? ERP is a word that is used in a wide range of firms, such as the manufacturing, banking, healthcare and transportation, construction utilities, as well as information technology industries. ERP software, which is complete and integrated systems, can take care of every aspect of any manufacturingor distribution-based company. They can align finance, human resources, production control, inventory control and distribution, in line with accounting’s main function. ERP software can be integrated with each aspect of an organization from sales, marketing, the processing of orders, finances, and administration to inventory distribution, customer services. The Malaysian companies are increasing their use of ERP software. Despite the lack of infrastructure or the high cost of licensing, Malaysia has many ERP firms that have been running for more than thirty years. Along with being economical the ERP software from an established provider can aid in the growth of a business because an ERP system can help in the development of buying systems, logistics and human resource management supply chain and production management. With a properly implemented ERP software, businesses located in Malaysia can realize the benefits of an adaptable, reliable and effective enterprise resource planning. The majority of ERP providers supply ERP software programs that contain modules that deal with accounting, human resources as well as inventory control, procurement services as well as finance and accounting distribution, as well as service management. A ERP package might also comprise components for customer service in addition to training and implementation. A lot of ERP packages now integrate modern options for managing services like live chat, customer self-service as well as the ability to monitor reservation status. There are ERP options for management of services available in Malaysia that allow employees to control their own working schedules, their payroll, training and quality fields. ERP software can also be used to oversee the management of product sourcing as well as real estate properties, financial management as well in logistics, financial process management, project accounting project delivery, manufacturing process administration, inventory management and logistics management. ERP implementation within Malaysia has gained much popularity due to the affordable price of licences for ERP systems in this country. Another factor is Inefficiency and inefficacy in government handling of the processing industries. In addition, the ownership as well as management of large-scale manufacturing companies are not well-defined, regardless of the fact the ownership of manufacturing firms with large-scale production in Malaysia has become a major issue due to state support. The Malaysian government’s efforts to enhance the sector of manufacturing, and also to draw local firms, as well as increase training opportunities as well as provide greater employment opportunities has led to slow industrial growth and relative inefficiency within the government’s management of processing sectors. The Malaysian manufacturing industry is far further behind its counterparts from other countries regarding the adoption of technologies, supplier competitive edge, and investments in research and development (R&D). Malaysia’s ERP implementation needs to improve its the competitiveness of its business and adapt to changes in markets, particularly considering the fact that Indian and Chinese vendors are providing low-cost labor as well as Western technologies. It is the only way to success internationally. ERP software has been supplied by Malaysian firms over the last few years to various companies and public agencies. The lack of familiarity and/or expertise of suppliers in these fields is the main obstacle in the implementation success of ERP software in Malaysia. Acrux Systems BV is one example of an ERP vendor that is based in Malaysia that has not been able to implement and design its ERP system in Malaysia. For over 20 years, small – and medium-sized companies in Malaysia are buying ERP systems from companies such as Italy or Germany. They are not equipped with the technical infrastructure and knowledge required to successfully implement ERP. The mid-sized enterprises initially invested in ERP systems to reduce costs. But, they now face the same problems that large multinational corporations face. Along with the cost of education, the majority of ERP systems are in Europe as well as the U.S. are not compatible with their internal processes. To tackle the ERP issues with implementation in Malaysia In order to address the issues with ERP system implementation in Malaysia, both SME and large companies need be focused on the quality and the scope of the services that are offered. Numerous large enterprises contract out their services to ERP software companies from Malaysia for Accounting and CRM. This strategy allows them to focus on their business core processes however, it also results in revenue loss in Malaysia. Around one-to three million per year is taken away by businesses operating in Malaysia due to inadequate ERP software support and poor knowledge of personnel handling ERP software. Malaysia must have an ERP system integrator along with the right ERP system integration team. It is essential for Malaysia to reap the maximum benefits. Companies could spend thousands on inefficient ERP software that could have to be replaced in the future. If there is no ERP integration specialists, it’s possible for firms to spend millions. Businesses located in Malaysia who are adept at managing ERP integration initiatives effectively are able to realize significant savings while saving time. Firms that lack ERP integration experience could be confronted with a myriad of obstacles and costly expenses. The cost for ERP software in Malaysia could run into millions of ringgits for each software. Most ERP companies that operate in Malaysia have government ownership or do not. The ERP manufacturing resource planning industry in Malaysia are so far benefitting significantly in the course of ERP integration in Malaysia. This in turn has increased the level of competitiveness of Malaysia within the international marketplace. ERP implementation in Malaysia has also resulted in improved productivity, lower costs of operations and a reduction in labor cost. Malaysian ERP software is more affordable than ERP software used in more advanced nations. Most importantly, the benefits of ERP systems implemented in malaysia have a wide-ranging impact and could help manufacturing companies in the years to be.