Digital Minister, Gobind Singh Deo at the Business Digitalisation Initiative event today. NSTP/ROHANIS SHUKRI
KUALA LUMPUR: The government has launched a RM1.5 billion fund to accelerate digital transformation among micro, small and medium enterprises (MSMEs) nationwide.
The initiative is spearheaded by the Malaysia Digital Economy Corporation (MDEC) under the Digital Ministry and established through strategic public-private partnerships.
It involves collaborations with financial institutions, digital banks, peer-to-peer (P2P) lending platforms and local service providers, aimed at boosting MSMEs' output and cost-effectiveness.
Speaking at the Business Digitalisation Initiative (BDI) event, Digital Minister Gobind Singh Deo said the rakyat-centric digitalisation effort empowers MSMEs with innovative technology solutions.
"This will enable them to achieve greater productivity and operational efficiency," he said.
Over 60 per cent of businesses in Malaysia, equivalent to more than 650,000 MSMEs, are still at a basic level of digitalisation and have yet to fully embrace technological adoption.
While 93.1 per cent of these MSMEs have access to the internet, their investment in advanced digital technologies remains significantly low.
Gobind said the initiative adopts a "whole-of-nation" approach, ensuring MSMEs have access to the necessary tools, financing and expertise to thrive in today's rapidly evolving digital economy.
During the event, several memorandums of understanding (MoUs) were signed between MDEC, SME Corp Malaysia, financial institutions, digital banks and P2P lending platforms.
These agreements aim to provide comprehensive support, including funding, digital tools, and capacity building, to enable MSMEs to transition successfully into the digital economy.
"This collaboration is crucial to ensure that business owners understand the importance of financial management through digital methods, enabling them to gain greater benefits, particularly in terms of support and guarantees for their business financing needs," Gobind stated.
MDEC chief executive officer (CEO) Anuar Fariz Fadzil described the BDI as a pivotal initiative to "uplift" MSMEs by addressing their key challenges, such as lack of skills, tools and funding.
"This initiative is about tackling real business pain points and providing targeted, practical solutions that align with their operational needs and growth aspirations," said Anuar.
The initiative also includes 21 'freemium' and affordable e-invoicing solutions based on the Peppol framework, designed to make digitalisation accessible to MSMEs and encourage them to scale locally and globally.
SME Corp Malaysia CEO Rizal Nainy said the firm's partnership with MDEC ensures that MSMEs are not left behind in the digital economy.
"Together, we are creating a more cohesive and targeted ecosystem to address the real barriers faced by MSMEs," said Rizal. -- NST
