MSME Policy Should Focus On Coordinated, Outcome-Oriented Support -- MIER

KUALA LUMPUR, Sept 1 (Bernama) -- Malaysia’s micro, small and medium enterprise (MSME) policy should move beyond expanding the quantum of assistance towards building a more coordinated, accessible and outcome-oriented ecosystem, according to the Malaysian Institute of Economic Research (MIER).

MIER said the objective should be to provide the appropriate assistance at the right stage of development, while building institutional knowledge and capability and maximising the economic and social returns from public resources.

It said the longer-term key challenge is the fragmentation and overlap of support programmes across ministries, government agencies and financial institutions.

“While substantial funding is available, better coordination is needed to simplify access, reduce duplication and ensure that support reaches the right businesses at the right stage of development,” it said in a statement today.

MIER also called for greater emphasis on outcomes rather than disbursement.

It said the effectiveness of support should increasingly be assessed through indicators such as business survival, productivity, income growth, employment creation and the ability of micro-enterprises to achieve sustainability or graduate to larger-scale financing and markets.

“A more integrated one-stop information approach could help entrepreneurs identify and access financing, grants, guarantees, digitalisation assistance, advisory services and skills development through a more coordinated system,” it said.

The think tank also welcomed Prime Minister Anwar Ibrahim’s announcement of RM200 million in grants for hawkers, small traders, night-market operators and mothers running home-based businesses through the Geran Sejahtera MADANI and an additional RM1 billion in microfinancing, bringing the total funding allocation for 2026 from RM5 billion to RM6 billion.

“These measures provide timely support to segments of the micro-enterprise community that often face greater difficulties in accessing formal financing,” it said.

MIER also welcomed the increase in the annual revenue threshold for mandatory e-Invoice implementation from RM1 million to RM3 million.

“Exempting businesses with annual revenue not exceeding RM3 million would reduce compliance costs and administrative requirements for many micro and small enterprises,” it added.

-- BERNAMA