KUALA LUMPUR: Malaysia Digital Economy Corporation (MDEC) has signed memorandums of understanding (MoUs) with seven financing partners to improve access to financing for small and medium enterprises (SMEs) through the National E-Invoice Financing Exchange (NEFX).
The seven financing partners are CIMB Bank, CIMB Islamic Bank, Affin Bank, Alliance Bank, Funding Societies, CapBay and Bettr.
In a statement, MDEC said NEFX is being developed as an open, secure and artificial intelligence (AI)-enabled digital financing marketplace that uses authenticated e-Invoice data exchanged through the Peppol network.
The platform aims to help financial institutions assess SMEs' creditworthiness, manage lending risks and evaluate repayment capacity, particularly for businesses with limited credit histories or collateral.
MDEC chairman Ganesh Kumar Bangah said the initiative would help address financing challenges faced by SMEs while enabling financial institutions to make more informed lending decisions.
"NEFX is not about relaxing lending standards. Instead, by leveraging trusted digital transaction data, it aims to provide greater transparency, support better-informed lending decisions and create opportunities for financial institutions to expand their SME financing portfolios while managing risks more effectively," he said.
MDEC acting chief executive officer Azlan Sharom said the platform's planned pilot capabilities include data assessment, prevention of double financing, loan tracking and consent management.
He said credit approvals, disbursements and collections would remain the responsibility of financing institutions.
The seven financing partners will help develop the platform's data requirements, financing processes and system integration ahead of a wider rollout.
MDEC also recognised ecosystem partners MyDigital ID and CGC Digital, alongside five Peppol-ready solution providers, namely E Stream MSC, QNE Software Malaysia, Xero Software Malaysia, Radiant Globaltech and Precomp.
Meanwhile, Ganesh said MDEC was also advancing the National AI Compute Exchange (NACX) to broaden access to AI computing resources for Malaysian businesses.
He said both initiatives formed part of MDEC's strategy to improve SME productivity and competitiveness while supporting Malaysia's ambition to become an AI Nation by 2030.
