KUALA LUMPUR: The Digital Ministry, through Malaysia Digital Economy Corporation (MDEC), is rolling out a RM1.5 billion “Business Digitalisation Initiative” aimed at helping MSMEs (micro, small, and medium enterprises) adopt digital tools, including e-invoicing systems and access to financing.
Digital Minister Gobind Singh Deo said more than 60% of businesses in Malaysia are still at a basic level of digitalisation, which translates to more than 650,000 MSMEs that have yet to fully adopt technology.
“The Business Digitalisation Initiative is like the beginning of a long journey. It is expected to take several years to deliver significant impact, but I hope to see small successes along the way that benefit entrepreneurs and the national economy,” he said at the launch of the initiative today.
Gobind said the government is aware that cost is a major challenge faced by MSMEs in adopting digital technology, particularly in the implementation and adoption of e-invoicing. “The government has identified 21 e-invoicing service providers that are offering freemium and affordable packages to MSMEs, to help them transition to an e-invoicing system without the burden of high costs.”
He added that the implementation of e-invoicing is not solely for tax compliance. “The Ministry of Digital, through MDEC, is implementing e-invoicing to digitalise businesses using the Peppol framework, which is the most widely adopted e-invoicing standard globally.”
The ministry will review the initiative’s progress within the next three to six months, Gobind said.
“We’ll look at the data, study how we can improve, and ensure that resources reach the right places so we can maximise the impact of this initiative. Ultimately, we want to see these businesses thrive.”
At the event, MDEC formalised several memorandums of understanding (MoU) to foster collaboration with SME Corp Malaysia, financial institutions, digital banks, peer-to-peer lending platforms and local service providers.
The MoU involve local digital solution providers offering digital solutions to provide digital tools to support business digitalisation and facilitate access to financing to help MSMEs make the transition.
“This collaboration is important to ensure that business owners understand the importance of financial management through digital methods, which enables them to gain more benefits – especially in terms of support and guarantees for business financing,” Gobind said.
MDEC CEO Anuar Fariz Fadzil said the Business Digitalisation Initiative aims to uplift MSMEs by building up their resilience, enhancing competitiveness and future-proofing their growth through digital adoption.
“Our approach includes tailored support, strategic partnerships, access to financing, and, freemium and affordable e-invoicing solutions built on the Peppol framework, making digitalisation more accessible while encouraging MSMEs to scale locally and globally.
“In addition to today’s exchange of MoUs, we are currently in negotiations with global cloud service providers such as AWS, Oracle, Tencent, Microsoft, and several other companies, with the hope of enabling easier access for MSMEs to their wide range of solutions,” said Anuar.
Also present at the launch were representatives from Maybank, TM, Boost Holdings, GX Bank, TnG Digital, Funding Societies, Capbay, CTOS Digital, Grab Car and ICT Zone Ventures.
