KUALA LUMPUR: The SME Association of Malaysia (SME Malaysia) has called for Budget 2027 to focus on measurable outcomes rather than the size of grants, financing and incentives allocated to small and medium enterprises (SMEs).
The association said support should translate into higher productivity, investment, business growth and competitiveness, amid rising labour, utilities, financing, taxation and compliance costs.
“Malaysia has developed a broad ecosystem of SME financing, incentives, grants, digitalisation and capability programmes.
“The next challenge is to ensure that these interventions are better coordinated, easier for businesses to access and, most importantly, capable of producing measurable business outcomes,” SME Malaysia national president Dr Chin Chee Seong and national council member Prof Dr Anthony Dass said in a joint statement.
It proposed measuring Budget 2027 support by indicators including the number of SMEs receiving assistance, approval and disbursement timelines, automation and artificial intelligence (AI) adoption, productivity gains, private investment and domestic direct investment generated, supplier development, exports and the number of Malaysian companies scaling into regional and global markets.
SME Malaysia also called for a cumulative SME cost and regulatory impact assessment to measure the combined effect of labour, utilities, financing, sales and service tax, e-invoicing, licensing and other compliance costs.
It said any further increase in the current RM1,700 minimum wage should be deferred, with priority given to raising productivity, accelerating automation, strengthening workforce capabilities and supporting business expansion.
On financing, the association proposed an SME life-cycle framework covering working capital, machinery and automation, digital and ESG transition, growth and exports, as well as equity and commercialisation funding.
It also urged the government to ensure high-value foreign direct investment creates greater opportunities for Malaysian businesses through local procurement, supplier development, technology and knowledge transfer and talent development.
SME Malaysia called for stronger support for automation, robotics, AI, cloud computing, data analytics and smart manufacturing, alongside training, reskilling and upskilling.
It also proposed an integrated SME Development Gateway providing businesses with a single profile, diagnostic and development pathway to access financing, technology, ESG, skills, certification, supplier development and export support across government agencies.
The association said Budget 2027 should ultimately build a pipeline of Malaysian companies capable of growing from small businesses into competitive mid-tier, regional and global enterprises.
