KUALA LUMPUR, 26 March 2025 — Malaysia Digital Economy Corporation (MDEC) wishes to clarify that the total cumulative fund of approximately RM1.5 billion to support business digitalisation initiative amongst Micro, Small, and Medium Entreprises (MSMEs) announced yesterday is not an outright government allocation.

Instead, the fund is being made possible through strategic public-private-partnerships among government agencies and supporting partners including financial institutions, digital banks, peer to peer (P2P) lending platforms and local service providers. It also serves to offer digital financing facilitation for this community’s business operation needs.

This Business Digitalisation Initiative (BDI) is a business centric transformative digitalisation initiative by the Madani Government to empower MSMEs with innovative technology solutions for their realisation of greater productivity and operational efficiencies.

It represents a ‘whole-of-nation’ approach to ensure MSMEs have access to digital solutions, financing opportunities and expert guidance to enhance their competitiveness within today’s rapidly evolving digital economy.

Through this BDI initiative, the Madani Government is accelerating MSME digital adoption while nurturing inclusive growth that enables businesses of all sizes to thrive in the years and decades ahead.

As a result, various Memorandum of Understanding (MoU) collaborations between MDEC-SME Corp, as well as with various partners from financial institutions, digital banks, peer to peer (P2P) lending platforms and local service providers were formalised – all aimed at ensuring that MSMEs receive comprehensive support across funding, digital tools and capacity building to successfully transition into the digital economy.

This initiative also aims to ‘uplift’ MSMEs by building their resilience, enhancing competitiveness and future-proofing their growth through meaningful digital adoption. It is about tackling real business ‘pain points’ — may that be lack of skills, tools, funding or simply not knowing where to start — and providing targeted, practical solutions that are realistic and relevant to their operations and business aspirations.