Special advisor says 1.06 million MSMEs account for 97% of businesses, urges AI adoption and easing financing for new entrepreneurs.
MELAKA: More than 1.06 million micro, small and medium enterprises (MSMEs) have been recorded nationwide, representing nearly 97% of all businesses in Malaysia, said special advisor to the National Entrepreneur and Micro, Small and Medium Enterprises Development Council (MPUPK) Datuk Seri Wan Rosdy Wan Ismail.
He said there were 207,303 MSMEs in the southern zone alone, of which 131,214 were in Johor, 42,673 in Negeri Sembilan and 33,416 in Melaka.
“The figure reflects the southern zone’s position as one of the country’s most active centres of entrepreneurial growth. While MSMEs have recorded encouraging achievements, we must acknowledge the rapid changes taking place in today’s business environment,” he said at a dialogue session with entrepreneurs in Ayer Keroh today.
Also present were SME Corp chief executive officer Rizal Nainy and state deputy science, technology, innovation and digital communications committee chairman Datuk Mohd Noor Helmy Abdul Halem.
Wan Rosdy, who is also the Pahang Menteri Besar, said entrepreneurs today could no longer rely on traditional approaches but must embrace change by adopting artificial intelligence (AI) and digitalisation.
“AI is no longer an option but a necessity, while digitalisation has moved beyond being an added advantage to become a key factor in determining an enterprise’s competitiveness,” he said.
At a press conference after the event, Wan Rosdy said increasing grant allocations and easing certain financing requirements for new entrepreneurs would be among the measures proposed to the government to strengthen the MSME sector.
“While various existing government initiatives have helped drive MSME development, some requirements are still considered burdensome, particularly for those who are just starting their businesses. Some of the requirements include having a good financial track record despite being new in business, as well as providing documentation, business records and going through several processes before they can qualify for financing or grants,” he said.
On the programme, Wan Rosdy said more than 300 MSME entrepreneurs and representatives from Melaka, Negeri Sembilan and Johor gathered to share feedback, suggestions and challenges.
Earlier at the event, RM1.64 million was channelled to MSME entrepreneurs through several initiatives, including RM1 million under the BRAVE Programme, RM350,000 through the SME Scaling Catalyst Fund Programme and RM285,000 under the TUBE-S Programme, involving 19 recipients.
