KUALA LUMPUR: Entrepreneur and Cooperatives Development Minister Steven Sim has unveiled the SCALE Action Plan for 2027, outlining five strategic priorities to address long-standing structural challenges faced by Malaysian small and medium enterprises (SMEs).
Speaking at the Samenta SME CEO Forum 2026, Sim said the new action plan would complement the Entrepreneur and Cooperatives Development Ministry’s (Kuskop) existing ABCD strategy.
The SCALE Action Plan comprises five strategic priorities:
S – SME Redefinition
Kuskop will review Malaysia’s existing SME definition, which has remained in place since 2013, to reflect changes in the business landscape and align with international best practices.
The current definition was introduced before the widespread adoption of technologies such as artificial intelligence (AI). Kuskop aims to complete the review by 2027.
C – Cash Flow Protection
Kuskop will look into measures to protect SMEs against delayed payments and prolonged payment retentions.
The initiative aims to strengthen the financial resilience of SMEs and prevent smaller businesses from effectively becoming interest-free credit providers to larger companies.
A – AI for SMEs
Kuskop will prioritise helping micro, small and medium enterprises adopt AI across different stages of business operations to increase productivity and create greater value.
AI could enable businesses to increase output and productivity without relying solely on longer working hours, supporting Malaysia’s transition from a Made in Malaysia to a Made by Malaysia growth model.
L – Local Content Requirement
Kuskop will explore local content requirements to ensure Malaysian SMEs benefit more directly from domestic economic growth and major investments, including foreign direct investment.
Kuskop will consider appropriate guidelines and, where necessary, legislative measures to strengthen local SME participation in supply chains and investment projects.
E – Easing SME Financing
Kuskop will work with relevant ministries, financial institutions and Bank Negara to address outdated regulations and other barriers that hinder SMEs’ access to financing.
It will also explore ways to improve access to alternative capital-raising mechanisms beyond traditional financial institutions.
According to Sim, Kuskop’s focus in 2026 has been to accelerate productivity, reduce bureaucracy, improve capital accessibility and drive market access through its ABCD strategy.
“While Kuskop’s ABCD strategy would continue to address immediate business challenges, the SCALE Action Plan would complement the existing strategy by focusing on longer-term structural reforms to help SMEs grow, compete and move up the value chain,” he added.
He also called on industry players to take advantage of the opportunities under Budget 2027 and prepare their businesses for the next phase of growth.
Based on SME Corp Malaysia’s calculation, total SME-related support under Budget 2027 amounts to RM67.9bil, covering financing, guarantees, grants, training, resources and programmes.
This includes RM57bil in loan and financing guarantee facilities, up from RM50bil in 2026.
Kuskop had channelled RM10.5bil to approximately 295,000 entrepreneurs and SMEs nationwide as of Sept 30, against its target of RM15bil for the year.
