Abstract This study examines the factors that affect the long-term viability of micro, small, and medium enterprises (MSMEs) in Malaysia. The strategic integration of digital technologies receives particular emphasis. Previous studies have examined the relationship between financial performance, innovation, and competitiveness, as well as the economic performance of SMEs. This study, however, makes a different contribution by focusing on the importance of corporate digitization as a critical factor affecting the sustainability of MSMEs in the Malaysian context. This empirical study collected data from 200 randomly selected MSMEs in Malaysia through a structured questionnaire. This study employs a two-stage quantitative methodology, first conducting an exploratory factor analysis and then using AMOS software version 18 to analyze the confirmatory factors of the items under investigation. This study found that implementing a business digitization strategy clearly impacts the innovation and competitiveness of MSMEs in Malaysia. This research also shows that effective digital integration can significantly contribute to the sustainability of MSMEs. Furthermore, the most essential thing in this study is demonstrating how innovation and digital competitiveness affect MSMEs' sustainability. The research findings presented in this study provide essential guidance to MSMEs in Malaysia by suggesting strategic directions to improve sustainability through the smart integration of digital technology. By adapting these findings, entrepreneurs can enhance the market position of their products and services, foster ingenuity, and effectively navigate the challenges of the current digital era. Keywords: Business Digitization, Innovation and competitiveness, MSMEs' Sustainability, Malaysia