KUALA LUMPUR: SME Bank, Malaysia's leading development financial institution for micro, small and medium enterprises (MSMEs), has identified three aspirations to utilise the RM1.7 billion allocation from the 2024 Budget.

The three pillars are the technology transformation of Industry4WRD, the empowerment of MSMEs in the halal industry and the expansion of regional exports. 

SME Bank group president and chief executive officer Datuk Wira Aria Putera Ismail said these aspirations align with the New Industrial Master Plan 2030 (NIMP 2030), which aims to develop Malaysia's industrial capacity to be more resilient long-term and achieve sustainable growth.

To recap, SME Bank received an allocation of RM1.7 billion from the recent 2024 Budget for halal, industry4wrd, export and social enterprise for MSMEs.

Minister of Entrepreneurship and Cooperative Development (MECD) Datuk Ewon Benedick said the government looks forward to efficiently utilising dedicated funds to create a transformative impact on the SME landscape.

SME Bank offers financing solutions for industry4WRD with working capital and asset acquisition to MSMEs to embrace technology transformation, including leveraging artificial intelligence (AI).

AI can help enhance customer service, bolster marketing and sales efforts, and drive growth, particularly in MSMEs. 

This will be achieved by allocating the SME Technology Transformation Fund (RM400 million) and Dana Pemantapan Automasi (RM50 million).

HalalBiz will be backed by a substantial RM100 million allocation, solidifying SME Bank's pivotal role as an enabler for MSMEs within the halal industry. 

Group chief corporate strategy officer Datuk Dr Mohammad Hardee Ibrahim said the bank's initiatives will be administered under the MECD to support MSMEs' halal journey.

MECD in 2023 gave SME Bank's affiliate, the Centre for Entrepreneur Development and Research (CEDAR), RM2.15 million to offer a full range of financial support, strategic consultancy services, and capacity building.

Through the business export programme (BEP), SME Bank will continue to provide entrepreneur capacity development with funding of RM3 million. 

Additional funding for Jaguh Serantau Financing has also been obtained, bringing the total investment to RM300 million.

According to Aria, the new financing programme, Dana Kemampanan PMKS Bumiputera, has been introduced with an allocation of RM200 million. 

Financial support in the form of matching grants has been added to strengthen the program's production capacities, increase its market presence, and boost its overall competitiveness.

MECD aims to increase the number of accredited social enterprises (ASE) with an allocated fund of RM1 million.

Furthermore, ASE can access financing support from SME Bank for asset acquisition and working capital needs through the Skim Pembiayaan Perusahaan Sosial, with a total allocation of RM15 million.

The Budget 2024 saw the government allocate RM44 billion in financing, grants and capacity development programmes, especially to empower the MSMEs.

https://www.nst.com.my/business/corporate/2023/10/970817/sme-bank-empower-msmes-three-aspirations-rm17bil-2024-budget