PRESS RELEASE

GOVERNMENT COMMITTED TO SUSTAINING AND EMPOWERING SME SECTOR

KUALA LUMPUR, May 6, 2025 – The Ministry of Digital warmly welcomes the Prime Minister’s timely announcement of additional support measures for Malaysia’s small and medium enterprises (SMEs), particularly in light of the emerging global economic uncertainties and the tariff actions recently imposed by the United States.

These measures underscore the government's unwavering commitment to sustaining and empowering the SME sector, which forms the bedrock of Malaysia’s economic resilience. The initiatives announced include:

- An additional RM1 billion government guarantee under the Business Financing Guarantee Scheme, aimed at easing SME access to credit in challenging conditions.

- A further RM500 million in soft loan financing through development financial institutions to bolster SME cash flow and operational continuity.

- An injection of RM50 million to MATRADE to help local SMEs expand their global footprint through international expos, trade exhibitions, and structured matchmaking with foreign buyers.

In direct synergy with these national efforts, the Ministry of Digital will fast-track the implementation of the Business Digitalisation Initiative (BDI), launched last month to equip SMEs with the tools and knowledge required for digital transformation.

The BDI is underpinned by a robust RM1.5 billion blended funding pool, and includes:

- Freemium digital solutions to lower the cost of doing business

- Comprehensive digitalisation toolkits

- Customised advisory and assessment services, and

- Access to an integrated ecosystem of public and private partners.

In just a month since its launch, the BDI has facilitated over 20,000 interests for funding to the partners which include Maybank, CapBay, Funding Societies and Boost. This is through collaboration with more than 50 business associations in the country.

MDEC will also commence the Digital Maturity Assessment process, starting with Kuala Lumpur, Penang, Johor, and Selangor, where over 30,000 SMEs have expressed interest in receiving assistance to digitalise their businesses. Following that, the process will be extended to the other states.

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Issued by:

Office of the Minister

Ministry of Digital, Malaysia