KOTA KINABALU: The SME Association of Malaysia (SME Malaysia) has called for the government to allocate RM40 billion in loans for small and medium-sized enterprises (SMEs).
According to the association, this form of financing will help SMEs with tight cash flow to advance their operations. The association also hopes the loans will come with low-interest rates below two per cent.
SME Malaysia national president Ding Hong Sing said that the transformation of SMEs in tandem with Industrial Revolution 4.0 requires the urgent adoption of automation and digitalisation, as it represents huge capital outlays for many businesses.
"Existing SME grants are insufficient to cover a large number of businesses in the country, so we suggest the grant size for automation, digitalisation and smart farming be increased to RM2 billion," he said.
Ding also called for one-to-one matching grants totalling RM2 billion specific to environmental, social and governance (ESG) projects for SMEs.
He added that such an incentive from the government would accelerate spending by SMEs in ESG, especially among manufacturing exporters.
SETTING BENCHMARKS
Ding was speaking at the Sabah roadshow of the Platinum Business Awards 2023 (PBA2023) organised by SME Malaysia.
PBA2023 aims to benchmark the business performance and quality standards of SMEs and individuals across 19 award categories by nomination and four categories by invitation.
Present at the event was state industrial development and entrepreneurship minister Phoong Jin Zhe, who also delivered a keynote speech.
SME Malaysia and PBA2023 organising chairperson and national vice president Datuk Ada Poon said that the awards would give a platform to showcase successful companies and uncover the next generation of business leaders.
"Honouring organisations and individuals will motivate them to improve their businesses and in turn, boost the industry and contribute towards the nation's progress," she said.
She added that a foreign category — the Asia Pacific Outstanding Enterprise Award — would allow nominations from China, Indonesia, Vietnam, Cambodia, Taiwan and South Korea to foster economic relations between Malaysian SMEs and their foreign counterparts.
In encouraging Sabah entrepreneurs to participate in PBA2023, SME Sabah president Datuk Foo Ngee Kee explained the benefits of enhancing branding and marketing prospects through the industry-recognised award.
"Many Sabah SMEs have great products but they lack market access and recognition, thus placing them at a disadvantage.
"Being a PBA winner would enhance our SMEs' position when engaging with bankers, suppliers and customers," said Foo.
During the event, the audience was briefed on the award nomination process and witnessed presentations by major event sponsors Hong Leong Bank (HLB) and Media Prima.
HLB shared that financial institutions can serve as trusted partners to help SMEs in their journey towards expanding their reach internationally. This is possible by fostering an environment that encourages innovation and transformation.
HLB's head of SME banking Kevin Ng, said: "As a bank with a strong entrepreneurship heritage, HLB is committed to supporting and empowering SMEs on their journey towards innovation, transformation and expansion into international markets.
"Our SMEs possess immense potential and innovative ideas that can contribute significantly to the nation's economic growth.
"Through strategic collaborations, flexible financing solutions and personalised advisory services, we believe we are well-positioned to help our SME partners embrace industry advancements and sustainability challenges, enhance operational efficiency, and gain a competitive edge on both local and global fronts."
PBA2023 nominations can be submitted here until August 15.