KUALA LUMPUR: SME Bank Bhd has called for strategic initiatives to boost the growth of small and medium enterprises (SMEs), emphasising sustainability, financial resilience, and digital transformation.
Acting group president and chief executive officer Datuk Dr. Mohammad Hardee Ibrahim expressed hope that the 2025 Budget would introduce comprehensive strategies in line with the government's economic goals and efforts to enhance the quality of life for Malaysians.
He said in an interview with Bernama that SMEs are the backbone of the Malaysian economy, playing a key role in driving economic growth and contributing significantly to the country's gross domestic product (GDP).
Mohammad Hardee highlighted the importance of financial institutions, especially development financial institutions (DFIs), in advancing economic progress. He pointed to SME Bank's distinct role as the only DFI in Malaysia with a dedicated capacity-building arm—its subsidiary, Centre for Entrepreneur Development and Research Sdn Bhd (CEDAR), which has supported over 82,000 entrepreneurs, primarily micro-enterprises.
Looking ahead to 2025, SME Bank plans to provide financial support to crucial sectors such as tourism, transportation, education, construction, healthcare, and manufacturing, all of which require additional assistance in the current economic climate.
"The expansion of funding requirements and government guarantee schemes are crucial, predominantly for the affirmative segments, such as women entrepreneurs, tourism and Halal sectors, exports, and the adaptation of IR 4.0, which involves SMEs evolving within the digital and technology realms.
"As such, we hope the government can consider providing greater access to more affordable financing via profit rate subsidies or grant allocation altogether, which should be supported with capacity building programmes," he said.
SME Bank remains committed to preparing entrepreneurs for the market by providing both technical and non-technical training to help build robust business models.
Mohammad Hardee also highlighted the role of artificial intelligence (AI) in expediting financing approval processes with less human involvement.
Additionally, he called on the government to consider tax exemptions on export earnings, as well as tax breaks or reduced rates for financing SMEs engaged in international trade.
He also urged for the expansion of government-backed guarantees for SME export financing, particularly for small businesses aiming for international expansion, to mitigate risks for banks supporting these ventures.