During the tabling of Malaysia’s Budget 2024, Prime Minister Anwar Ibrahim made it doubly clear that small- and medium-sized enterprises (SMEs), along with micro-entrepreneurs (micros) and companies that sit in between, are still a big focus for the government.
Among the various incentives and financing support that have been announced for the coming year includes:
- RM100 million (~USD) to power a new digitalisation grant — up to RM5,000 will be offered to 20,000 micros and SMEs (MSMEs)
- RM40 million (~USD) to enable and empower SMEs to start selling online via the ‘Shop Malaysia Online’ platform
- RM900 million (~USD) financing grant for SMEs to improve their operational productivity via automation and digitalisation
While these are not new support programmes for businesses, it reinforces the position that the government has towards MSMEs. As the digital economy continue to expand and become more influential, it is critical that no one is left behind.
To ensure it fulfils this specific objective, these initiatives have been optimised and streamlined to ensure it keeps up with the times of constant disruption and change.
Other financing support for MSMEs have also been introduced during the Budget 2024 reading, such as the RM28 million for MYStartup initiative to act as the single-window support for all startups; RM40 million allocation for businesses that want to start selling online and be onboarded onto the Shop Malaysia online platform; the ramping up of artificial intelligence research and development for business adoption with RM20 million; and optimisng economic transformation to encourage sustainability for all businesses.
(Picture credit: Astro Awani_RTM)
What had been shared during the Budget 2024 announcement will receive further drill-downs in the coming days and weeks. For now, it is very clear that Malaysia had reinforce its position and role to be very supportive of MSMEs as they are the primary growth drivers for the digital economy and socio-economic progress.