Batik workshops are a vital component of Malaysia’s intangible cultural heritage and increasingly operate as micro-enterprises within the creative tourism economy. However, their long-term sustainability remains underexplored. This study examines the challenges faced by batik workshop operators and how they navigate the intersection of traditional craftsmanship and evolving tourism demands. Adopting an interpretivist qualitative approach, semi-structured interviews were conducted with six operators across key tourism destinations in Malaysia. Data were analysed using thematic analysis. Findings reveal four interrelated sustainability challenges: financial vulnerability due to fluctuating tourist demand, operational constraints linked to owner-centric management, limited strategic marketing practices, and uneven digital readiness. A key insight is the emergence of a “Heritage–Digital Tension,” reflecting the need to balance craft authenticity with digital and commercial adaptation. The study argues that sustainability is capability-driven rather than resource-dependent. It proposes a practical capability framework encompassing financial structuring, operational systemisation, strategic marketing, and context-sensitive digital adoption. This research contributes to tourism and heritage enterprise literature by offering actionable insights for strengthening the resilience of small cultural enterprises in emerging creative tourism contexts.
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