SMEs need sharper support, foundation says

KUALA LUMPUR: Yayasan Usahawan Malaysia (YUM) is urging the Malaysian government to provide more robust support for SMEs, faster public-sector service delivery, and anti-corruption reforms in the 2027 Budget amid global economic uncertainty. The foundation believes that government aid should incentivize tangible growth, not just participation in programs.

YUM also advocates for the creation of a National SME Transformation Fund, a multi-year facility to fund businesses investing in digital transformation and renewable energy adoption to foster long-term growth. Additionally, the foundation suggests a National Business Approval Service Charter, aiming for defined, swift response times from agencies dealing directly with businesses.

The foundation proposes the formation of a permanent multi-agency task force, chaired at a high level, to pinpoint and eliminate regulations that unnecessarily delay investment and business activities. It also advocates for a uniform 30-day payment standard for approved SME invoices wherever feasible. Regionally, Malaysia should seize opportunities in semiconductors, cloud computing, data centers, and cybersecurity, among others.

In a statement, YUM Chairman Datuk Nitesh Malani stressed that the 2027 Budget should not focus solely on how much the government can spend, but on how every ringgit spent can unlock additional private investment, stimulate entrepreneurship, enhance productivity, and bolster confidence in the nation. He emphasized that Malaysia possesses ample talent, ideas, and opportunities; what entrepreneurs require is speed, certainty, accessibility, and a supportive government ecosystem that encourages rather than hinders growth.