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Digital minister announces RM1.5 bil allocation to boost MSME digitalisation | Scoop
Digital Minister Gobind Singh Deo launches the Business Digitalisation Initiative programme, spearheaded by MDEC, today. – Aina Sarafina/Scoop pic, March 25, 2025
News

Digital minister announces RM1.5 bil allocation to boost MSME digitalisation

Fund supported by govt agencies, private sector aims to help businesses adopt tech for finance, ops solutions to increase competitiveness

Bernama
Updated
3:22 PM MYT

 

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. 

Digital Minister Gobind Singh Deo said 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. 

“Competitiveness in today’s business landscape hinges on leveraging digital technology across sectors such as retail, food service, tourism, manufacturing, services, and agriculture to drive revenue, efficiency, and productivity. 

“I acknowledge that some businesses face high implementation costs despite adopting digital technology, which is why this initiative was introduced to ease those barriers and extend the benefits of digitalisation to more entrepreneurs,” he said at the launch of the Business Digitalisation Initiative (BDI) programme here, today. 

The BDI programme, spearheaded by the Malaysia Digital Economy Corporation (MDEC) under the purview of the Digital Ministry, provides MSMEs with financial aid, training, and mentorship to accelerate digital adoption by granting access to subsidised solutions such as e-commerce platforms, cloud computing, and artificial intelligence (AI)-driven business management tools. 

At a press conference after the launch, Gobind highlighted that a significant number of MSMEs have yet to digitalise due to limited awareness, lack of technical skills, and financial constraints. 

“One of the key challenges is a lack of talent, in the sense that many are not fully aware of how digitalisation can empower their businesses, while others do not have the necessary skills to adopt these technologies. 

“Over the past four months, MDEC, in collaboration with SME Corporation Malaysia (SME Corp), has been running intensive training programmes to help MSMEs navigate digital platforms, use digital banking systems, and integrate technology into their businesses,” he said. 

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. 

As part of the initiative, 21 MDEC-accredited e-invoicing service providers will offer free and low-cost e-invoicing solutions for MSMEs. – March 25, 2025

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