Kuala Lumpur: The Madani government has announced a RM1.5 billion fund to accelerate the digitalisation of micro, small, and medium enterprises (MSMEs) nationwide, with the goal of boosting business competitiveness.
According to BERNAMA News Agency, Digital Minister Gobind Singh Deo stated that the fund, supported by government agencies and private sector partners including financial institutions, digital banks, peer to peer (P2P) lending platforms, and local service providers, aims to help MSMEs adopt digital solutions and access financing for their operations.
He emphasized the importance of digital technology in today’s business landscape, highlighting sectors such as retail, food service, tourism, manufacturing, services, and agriculture as areas where digital solutions can drive revenue, efficiency, and productivity. The initiative was introduced to ease the high implementation costs that some businesses face despite adopting digital technology and to extend the benefits of digitalisation to more entrepreneurs.
The Business Digitalisation Initiative (BDI) programme, led by the Malaysia Digital Economy Corporation (MDEC) under the Ministry of Digital, provides financial aid, training, and mentorship to MSMEs. It grants access to subsidised solutions such as e-commerce platforms, cloud computing, and artificial intelligence (AI)-driven business management tools.
During a press conference, Gobind noted that many MSMEs have yet to digitalise due to limited awareness, lack of technical skills, and financial constraints. MDEC, in collaboration with SME Corporation Malaysia (SME Corp), has been running intensive training programmes over the past four months to help MSMEs navigate digital platforms, use digital banking systems, and integrate technology into their businesses.
At the event, MDEC formalised several Memoranda of Understanding (MoU) with SME Corp, financial institutions, digital banks, P2P lending platforms, and local service providers to expand MSMEs’ access to funding, digital tools, and training needed for digital adoption. Additionally, 21 MDEC-accredited e-invoicing service providers will offer free and low-cost e-invoicing solutions for MSMEs.