TechCrunch recently called it the "SaaSpocalypse", a wave of businesses ditching their SaaS subscriptions and building custom tools instead. Salesforce and Workday stock prices took a hit as investors realized: if AI coding assistants make building software this fast, why keep paying RM5,000 a month for something that only does 60% of what you need?
For Malaysian businesses, the build vs buy software question just got a lot more interesting.
What is the SaaSpocalypse, and why does it change the build vs buy decision?
AI coding tools like Claude Code, GitHub Copilot, and Cursor have made development so much faster that companies are canceling SaaS subscriptions and building their own tools instead. Stack Overflow's 2025 Developer Survey found that 84% of developers use or plan to use AI tools, with 51% using them daily.
The result: custom software that used to cost RM150,000+ and take 6-12 months can now cost RM30,000-80,000 and ship in 4-8 weeks. Over three years, that's often cheaper than the SaaS subscriptions it replaces.
Is custom software right for your business, or should you stick with SaaS?
SaaS still makes sense for standard stuff like email, accounting, or basic CRM. If the tool does what you need without workarounds, keep it. (And if you're building a SaaS product yourself, that's a different conversation.)
But if you're paying for multiple SaaS tools that overlap, spending more than RM3,000/month on subscriptions, or constantly fighting a tool because your workflows don't fit, that's when custom starts looking attractive.
The trade-offs are real though. Maintenance is on you, not the vendor. You need a developer or development partner who understands your business. And it takes weeks to get started, not minutes. None of that means you shouldn't build. It means you should pick the right thing to build first.
Build vs buy software in Malaysia: why conditions favour building now
Malaysian SMEs typically spend RM2,000-8,000 per month on SaaS subscriptions: CRM, project management, HR tools, accounting add-ons. That's RM24,000-96,000 a year, often priced in USD that gets more expensive every time the ringgit weakens.
Take Salesforce: USD 25/user/month for the Starter plan is about RM98. For a team of 20, that's roughly RM1,960/month for basic CRM alone. A custom CRM built around your sales process could cost RM50,000-70,000 once, and you own it.
Malaysian developer rates are well below US or European rates, and with AI coding tools, a small local team can do what used to require a much larger one. Companies with Malaysia Digital status can also tap MDEC's Digital Acceleration Grant, which covers up to 70% of development costs.
Build vs buy: a quick comparison
| Factor | Build (custom software) | Buy (SaaS) |
|---|---|---|
| Upfront cost | RM30,000-80,000 | RM0-5,000 setup |
| Monthly cost | Hosting only (RM200-500) | RM2,000-8,000/month |
| 3-year total | RM37,000-98,000 | RM72,000-288,000 |
| Time to launch | 4-8 weeks | Immediate |
| Customization | Fully tailored | Limited |
| Currency risk | None (MYR) | High (USD pricing) |
| Maintenance | Your responsibility | Vendor handles |
| Data ownership | Full | Vendor-dependent |
How to evaluate build vs buy for your business
- Audit your SaaS spend. List every subscription and honestly rate how much you use. Anything below 50% utilization is a candidate for replacement.
- Pick your most painful workflow, the one where you've built spreadsheet workarounds on top of a tool that almost works. That's your best first custom build.
- Get a real cost comparison. Talk to a custom software development team or get in touch with us and compare the build cost to what you're paying annually.
So should you ditch SaaS?
Not all of it. Gmail, Slack, and your accounting software probably aren't worth replacing. But that expensive vertical SaaS tool that only sort of fits your business, the one with USD pricing that keeps climbing? That's worth a second look.
AI has changed what software costs to build. If you're in Malaysia, Gotchaa Lab can help you figure out which tools are earning their subscription and which ones you'd be better off replacing.
