Key industry players have lauded the Ministry of Digital (KD) and Malaysia Digital Economy Corporation (MDEC), in collaboration with SME Corp Malaysia, for launching the groundbreaking Business Digitalisation Initiative (BDI). The initiative has been praised as a ‘bold and timely’ effort to accelerate digital adoption among Micro, Small, and Medium Enterprises (MSMEs) across the nation.

Industry leaders agree that the BDI marks a meaningful shift in how the government supports business digitalisation — moving from fragmented efforts to a coordinated ‘whole-of-nation’ approach. By aligning public and private sector strengths, the initiative aims to provide MSMEs with the tools, funding access and expert support they need to thrive in today’s competitive, tech-driven landscape.

There was broad consensus among stakeholders that the BDI is a ‘transformative and rakyat-centric’ initiative by the Madani Government. It is designed to empower MSMEs with innovative technology solutions, access to funding and expert guidance — ultimately enabling them to increase productivity and competitiveness in Malaysia’s fast-evolving digital economy.

The initiative is backed by a cumulative funding pool of approximately RM1.5 billion, made possible not through direct government allocation, but via mainly strategic public-private partnerships. These include collaborations with financial institutions, digital banks, peer-to-peer (P2P) lending platforms and local service providers. The BDI also includes digital financing facilitation to address operational pain points for MSMEs.

In the words of Digital Minister Gobind Singh Deo (pic – with MDEC CEO Anuar Fariz Fadzil and the ministry’s Secretary-General Fabian Bigar): “This BDI initiative is a rakyat-centric transformative digitalisation initiative by the Madani Government ‘to empower MSMEs with innovative technology solutions for their realisation of greater productivity and operational efficiencies’.

As part of this integrated approach, multiple Memoranda of Understanding (MoUs) were signed between MDEC, SME Corp. Malaysia, and participating partners — ensuring MSMEs receive end-to-end support in their digital transformation journeys.

Strong endorsements from CTOS, Grab, GX Bank

CTOS Data Systems Sdn Bhd’s Chief Operating Officer, Lee Shin Mei applauded the initiative, saying the government is ‘walking the talk with strong purpose’ when it comes to accelerating MSME digital adoption.

“It is certainly a mammoth effort by KD and MDEC, with support from SME Corporation Malaysia, to break new ground for the MSME community. Pulling together key industry players within the spheres of tech and financial services is no easy task – and credit to KD, MDEC and SME Corp for uniting the ecosystem to deliver meaningful, actionable support for our nation’s entrepreneurs,” she added.

Shin Mei also affirmed CTOS’s strong commitment to MSME development, calling them “the cornerstone of the Malaysian economy.” She added: “Our expertise in digital credit decisioning and data analytics benefits the MSME community by enabling more informed, efficient and accessible financial services.”

Meanwhile, Grab Malaysia also expressed strong support for the initiative. “Digitalisation has long been a key driver of business growth. At Grab, we are committed to empowering MSMEs with the right tools, insights, and financial solutions to scale sustainably,” said its Managing Director Adelene Foo.

“We recognise the government’s holistic approach to fostering inclusive economic growth through MSME empowerment. In 2023 alone, more than 500,000 newly registered MSMEs across Southeast Asia gained access to consumers via the Grab platform,” she further said.

Adeline added that the GrabMerchant app, which provides data-driven insights to help merchants make informed decisions, is aligned with the BDI’s goals. “Through this collaboration with MDEC, we look forward to reaching even more MSMEs across Malaysia and helping them thrive in the digital economy.”

GXBank Malaysia also pledged its support, viewing the BDI as a significant enabler for inclusive economic growth. “We are thrilled to sign the MoU with MDEC to drive the digital transformation of MSMEs,” said its Chief of Staff Hildah Hamzah.

“As one of Malaysia’s three operational digital banks, we have onboarded over one million Malaysians. MSMEs represent the next key demographic for us,” she said. “Historically, MSMEs have been sidelined by rigid credit assessments and cumbersome procedures. Our goal is to bridge this gap with accessible, tech-driven financial solutions.”

“We’re currently piloting financing solutions with Grab merchants and look forward to rolling them out to the wider MSME community. This collaboration is a step toward building a more inclusive financing ecosystem where MSMEs can flourish.”

Making E-Invoicing Mainstream

The BDI also includes affordable or even ‘freemium’ e-invoicing tools built on the Peppol framework, supported by 21 MDEC-accredited service providers. This element aims to streamline financial processes for MSMEs while boosting compliance, efficiency, and global scalability.

One such provider is BigLedger Sdn Bhd, known for its pioneering ‘data lake’ platform. CEO Vincent Lee emphasised the transformative potential of e-invoicing for MSMEs, especially when connected to the Peppol network.

“Peppol goes beyond being just a compliance tool to serve as a ‘key gateway’ for MSMEs to enter regional and global supply chains. By integrating our data lake capabilities with Peppol, we help businesses automate workflows, ensure real-time financial visibility and reduce operational bottlenecks,” Vincent said.

He added that BigLedger’s platform is designed with scalability and simplicity in mind, enabling even the smallest businesses to embrace digital transformation that promises to further nourish and grow their businesses.

Uplifting MSMEs, One Step at a Time

Commenting on the broader vision, MDEC CEO Anuar Fariz Fadzil said the BDI is about ‘uplifting’ MSMEs by building their resilience, enhancing competitiveness, and future-proofing their growth.

“We aim to tackle real business ‘pain points’— whether it’s a lack of skills, tools, funding or even knowing where to begin — and offer solutions that are targeted, practical and relevant to their business aspirations,” he said.

“This includes tailored support, strategic partnerships, access to financing and freemium e-invoicing tools, ensuring digitalisation is both accessible and impactful for MSMEs throughout our beloved nation,” concluded Anuar.

Source: This article was contributed by Strat Comms practitioner Michael Ang. Views expressed are his own.

The views expressed here are those of the author/contributor and do not necessarily represent the views of Malaysiakini.

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