Adopting digital technology among small and medium-sized enterprise (SME) manufacturers in the modern technology-driven industry is important to ensure their competitiveness and sustainability. However, many SMEs learn it is difficult to adapt to the digital transformation due to various barriers. Therefore, this study aims to explore the challenges faced by SME manufacturers in digital transformation from a Resource-Based View (RBV) perspective. Six respondents from three SME manufacturers in Selangor, Malaysia, were interviewed for this study. The data gathered were manually analysed to provide preliminary insights into the barriers to adopting digital technology. The study identifies the barriers that affect digital technology adoption within SMEs, including financial constraints, infrastructure gaps, digital skill gaps, and management capabilities that lead to resistance to change. This study enhances our knowledge of the key barriers hindering Malaysian SMEs from going digital, thus providing insights to the government and other stakeholders in supporting technology facilities that are more focused on the sustainable development of SMEs in the manufacturing sector.