Malaysia’s economy thrives on the contributions of its small and medium-sized enterprises(SME) sectors, which are essential drivers of GDP, employment, and exports. According to the Department of Statistics Malaysia, SME and MSME sectors recorded a 5% growth, contributing RM613.1 billion to the GDP and accounting for 39.1% of the nation’s economy.
As digital transformation reshapes industries, Malaysia is taking substantial steps to support these sectors in navigating the digital economy.
In line with the MADANI Budget 2025, the Ministry of Finance (MOF) has introduced a RM50 million Digital Matching Grant through Bank Simpanan Nasional (BSN) to accelerate the digital transformation of MSMEs, including local entrepreneurs and small vendors.
Aligned with the Malaysia Digital Economy Blueprint (MyDIGITAL), this initiative aims to match funds for digital investments, reflecting MOF’s steadfast commitment to driving innovation, enhancing competitiveness, and strengthening the resilience of MSMEs.
Driving Digital Transformation: MOF's Commitment to MSMEs
The Digital Matching Grant seeks to address some critical challenges MSMEs face in digital adoption, including the cost of implementing new technologies. For many smaller businesses, investing in digital tools can ease their business from as simple as having an ePOS terminal system to improving the business transaction record.
By providing these matching grants, the government aims to remove financial barriers and encourage MSMEs to adopt digital solutions that streamline operations, enhance productivity, and expand their market reach. From implementing customer management systems to investing in automated production tools, MSMEs have a wide array of digitalisation options to explore with the grant support.
According to Jay Khairil, Chief Executive of BSN, eligible applicants must meet specific criteria, including being an MSME actively adopting digitalisation and operating with a registered license.
These requirements ensure the grant reaches businesses prepared to embrace digital innovation.
Empowering Local Entrepreneurs with the Digital Tools and Resources Necessary for Sustainable Growth
Through its partnership with MDEC, BSN connects MSMEs to trusted Digital Providers (DPs) offering a broad spectrum of digital solutions. These range from digital marketing, cashless payment systems, and HR payroll management to more advanced options like enterprise resource planning (ERP), cybersecurity, IoT systems, and digital healthcare solutions. This diverse portfolio ensures that businesses across industries can find the tools they need to thrive in an increasingly digital landscape.
For smaller businesses, including hawkers, BSN provides tailored solutions such as ePOS terminals to simplify transactions, enhance sales tracking, and boost operational efficiency. By ensuring accessible and practical digitalisation support, BSN enables entrepreneurs to unlock new opportunities, navigate challenges, and confidently embrace digital transformation.
“The application process for the available grant, facilitated through BSN, is designed to be straightforward and accessible for MSMEs. Applicants begin by submitting their applications online via the Funding Society website. They then select digital solutions that align with their business needs, accompanied by the necessary documentation. Once submitted, the applications are reviewed, and Funding Societies provide updates on the application status. This streamlined approach ensures that businesses are guided throughout the process,” said Jay Khairil.
Before the grant is disbursed, applicants must make a 50% upfront payment for the installation or subscription to proceed with the matching grant.
Additionally, hawkers can benefit from a one-time payment of RM1,000, based on the total invoice amount. This process ensures clarity and accessibility for MSME, enabling them to gain access to essential digital tools quickly.
BSN's Role in Supporting MSME Through Digital Transformation
BSN understands that digital transformation can be a daunting journey, especially for entrepreneurs who may not be tech-savvy. To support these entrepreneurs, BSN offers a comprehensive system designed to ease the transition into the digital era. This includes tailored workshops, webinars, and consultations focusing on key areas such as digital tools, e-commerce strategies, and data analytics, exemplified by initiatives like the Visa Programme.
BSN also fosters strategic partnerships with leading platforms like Mesinkira and Borong, providing essential training and tools for streamlining online sales, inventory management, payments, and accounting. By combining hands-on support with the right technology and knowledge, BSN ensures that every MSME is well-equipped to succeed.
The Digital Matching Grant is a testament to MOF’s unwavering dedication to shaping a resilient, competitive, and digitally-empowered Malaysian economy. By strategically investing in the digitalisation of MSMEs, MOF is ensuring that these businesses not only thrive in the digital age but also contribute to a more inclusive and sustainable economic future.
Seizing Opportunities
Budget 2025 clearly indicates the government’s commitment to supporting the digitalisation of businesses and driving growth in the Malaysian economy. Through continuous support from the government, along with grants and financing facilities, MSMEs are empowered to embrace digital technologies that enhance their competitiveness. With this backing, businesses can position themselves for success in an increasingly digital world.
Now is the time to take advantage of these opportunities—seize the chance to innovate, expand, and stay ahead in the dynamic world of digital commerce. Apply for the Digital Matching Grant and other available funding today to propel your business into the future. Visit https://www.bsn.com.my/page/MSMEMadani for more information.
The views expressed here are those of the author/contributor and do not necessarily represent the views of Malaysiakini.
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