ENSURE that subsidiaries of public-listed companies (PLCs) and government-linked companies (GLCs) do not have priority in the RM40bil allocated under the business financing guarantee scheme to be disbursed by banks, the government is urged.
Small and Medium Enterprise Association (Samenta) Malaysia honorary national secretary Yeoh Seng Hooi said in the past, PLC and GLC subsidiaries were the first to get financing provided under the scheme.
“Not much was left for SMEs after these subsidiaries laid their hands on the funds,” he said.
During the tabling of Budget 2025 yesterday, Prime Minister Datuk Seri Anwar Ibrahim announced the provision of RM40bil as loan facilities and business financing guarantees under government agencies.
Yeoh also urged the government not to impose a higher interest rate of 4% on the RM3.8bil soft loan to fund SME automation and digitalisation activities.
“The RM3.8bil is a boon but the interest rate should not be high so that it won’t burden SMEs that take up the loans,” he added.
He also called for the RM50mil matching grants for SMEs to pursue digitalisation activities to be increased.
“The RM40mil for Matrade (the Malaysia External Trade Development Corporation) as a refund grant to help Malaysian exporters promote their products and services and explore new markets is also an insignificant amount,” he added.
The Malaysia Semiconductor Industry Association (MSIA) said it welcomes the government’s initiatives to support SMEs, exporters, and startups, mainly through the RM50mil digital matching grant and RM3.8bil SME fund for digitalisation and automation.
“These measures will help local electrical and electronics (E&E) companies and those in the broader E&E ecosystem to remain competitive, adopt advanced technologies and explore new markets.
“However, I believe more targeted funding – specifically for E&E, SMEs and exporters – could amplify the impact, given the industry’s high-tech nature and capital-intensive demands,” said MSIA director Andrew Chan.
Malaysia Extra Low Voltage Association assistant secretary Cheah Chaw Son said the government’s plan to start e-invoicing next July would boost the business of those providing solution services for the security, data network, audiovisual and ICT (information and communications technology) industries.
“E-invoicing would require more spending on ICT equipment and software, which will help our members’ business,” he added.
