Backing the little businesses

Yushida: MSMEs operate in an environment shaped by digitalisation, changing consumer behaviour, cost pressures, competition, and evolving financing needs.

MALAYSIA’S micro, small, and medium enterprises (MSMEs) face a host of challenges today, from rising operational costs to talent shortages and digital transformation gaps.

One of the biggest hurdles, for many small businesses seeking greater growth, continues to be access to financing.

The barriers to financing are multi-layered for MSMEs, according to Yushida Husin, chief executive officer (CEO) of CGC Digital, the digital arm of Credit Guarantee Corp Malaysia Bhd (CGC).

“Many MSMEs are not fully aware of the financing options available across banks, alternative financiers, and government programmes. This often leads to confusion and delays in starting their financing journey,” she says.

At the same time, many of the same businesses struggle with a lack of readiness. Despite being viable for financing, businesses often do not have the structured financial records, formal documentation, or a strong credit profile to pass the assessments and checks required to successfully receive funding.

Besides this, MSMEs are limited by difficulties matching to the right financing products based on their specific needs and business profile.

The scope of underserved businesses in the financing space today remains structurally significant, Yushida says.

“MSMEs represent over 96% of the nation’s business establishments, and microenterprises account for about 70% of the MSME base,” she notes.

“This means that even if only a portion of these businesses face financing challenges, the absolute number of businesses affected is still meaningful.”

To address this gap, CGC Digital’s online financing platform, imSME, was built to equip businesses with tools, guidance, and digital solutions that will simplify the process of securing financial assistance.

By providing a user-friendly, centralised marketplace for financing solutions including banks and peer-to-peer players, imSME allows MSMEs to shop and compare between a range of options available to them before applying.

Additionally, the platform’s automated referral system helps connect businesses with suitable financing products according to their sector, profile, and needs.

An additional advantage of imSME, Yushida notes, is that it removes the repetitive, tedious, and paperwork-heavy aspects of MSME loan applications.

Following a guided digital process, businesses can reduce issues of duplication and added administration burden that can often impede them in their financing journey.

Crucially, the platform was created to provide valuable resources and information that will enhance financial literacy for businesses.

“Closing the information and knowledge gap is critical because many MSMEs are not limited by capability, but by lack of clarity, awareness, and preparedness,” the CEO says.

“Information access is a key part of readiness, and stronger financial literacy enables businesses to navigate the financing process more confidently and improve their chances of approval.”

Another key goal for CGC Digital, Yushida says, is widening financial inclusion for businesses through imSME.

“Access to information determines how effectively MSMEs can discover, assess, and access suitable financing opportunities, particularly for the underserved segment​,” she stresses.

As more businesses are empowered to make better-informed decisions, improve their financial readiness, and increase their likelihood of securing financing, the entire financing ecosystem benefits as a result of greater inclusivity and efficiency, she explains.

“We go beyond just financing, equipping MSMEs with tools, insights, and guidance to better understand requirements, assess their readiness, and strengthen their overall financing profile before applying,” Yushida adds.

Today, the imSME platform boasts a significant uptake of over 143,600 registered users, with a growing network of 40 strategic partners and 90 financing products.

“This has translated into tangible outcomes, with RM628.6mil in approved financing across 6,318 successful approvals, demonstrating its effectiveness in converting access into actual funding for MSMEs,” Yushida shares.

On top of securing financing, CGC Digital is also committed to helping MSMEs build readiness and resilience for long-term growth through imSME’s access to various business services and protection solutions.

These include insurance products from trusted financing partners, as well as digital services that serve to streamline operational processes, reach new markets, and improve customer engagement.

Looking ahead, Yushida maintains a positive outlook on Malaysian MSMEs, but warns that the landscape is becoming increasingly complex.

“MSMEs continue to be a key driver of Malaysia’s economy. However, they are operating in an environment shaped by digitalisation, changing consumer behaviour, cost pressures, competition, and evolving financing needs,” she says.

“The next phase of MSME growth will require businesses to be more resilient, more digital and more financially prepared.

For this reason, CGC Digital’s plans for imSME are now centred on delivering more effective ways by which businesses can gain access to suitable financing and equip them to grow sustainably in the digital economy.

“We are strengthening our matching capabilities, expanding ecosystem partnerships, and exploring innovations such as artificial intelligence-enabled assistance, data-driven matching, and digital guarantee first solutions,” she says.