The rise of online learning has brought about a close connection between micro-credentials and lifelong learning, employability, and new models of digital education. Micro-credentials are consid- ered instrumental in transforming higher education today. This study aims to examine the extent to which micro-credentials have been adopted in Malaysia, focussing on the viewpoint of Higher Education Providers (HEPs). It seeks to identify the challenges faced by HEPs when offering micro-credentials, encompassing technological, organisational, and people-related obstacles. By analysing empirical data, this research intends to propose a conceptual framework that can guide the successful adop- tion and implementation of micro-credentials within educational institutions. By addressing these recommendations, HEPs in Malaysia can successfully adopt and implement micro-credentials within their institutions. This will not only enhance the learning experience for students but also contribute to the overall transformation of higher education, keeping pace with the demands of the digital age and fostering a culture of continuous learning and skill development.