The Malaysia Digital Economy Corporation (MDEC), in collaboration with the Ministry of Digital and various implementation partners, has unveiled a national funding initiative totalling approximately RM1.5 billion (US$338 million) to drive digital adoption among micro, small, and medium enterprises (MSMEs) across the country.
This funding pool—formed through a network of public-private collaborations involving government agencies, financial institutions, digital banks, peer-to-peer (P2P) financing platforms, and local service providers—is designed to provide MSMEs with access to digital tools, advisory support, and digital financing to strengthen their business operations.
Gobind Singh Deo – Minister of Digital of Malaysia
Announcing the initiative, Digital Minister Gobind Singh Deo described the programme as a people-first transformation agenda championed by the Madani government.
“This digitalisation initiative is designed to equip MSMEs with innovative technologies that can boost productivity and improve operational efficiency,” he said. “It represents a holistic national effort to ensure MSMEs are not left behind as the economy becomes increasingly digital.”
The programme, known as the Business Digitalisation Initiative (BDI), brings together ecosystem players through formal partnerships to streamline MSME access to financial support, digital solutions, and expert guidance for sustainable growth.
Anuar Fariz Fadzil – MDEC, Chief Executive Officer
MDEC Chief Executive Officer Anuar Fariz Fadzil emphasised that the initiative directly addresses the challenges faced by MSMEs, including limited access to digital tools, financing gaps, and uncertainty about where to begin the digital transformation journey.
“Our goal is to provide practical, scalable solutions to real business challenges,” Anuar said. “Through tailored support, strong partnerships, and accessible e-invoicing options—including affordable and freemium solutions powered by the Peppol framework—we’re making it easier for MSMEs to adopt digital practices and scale their businesses both locally and internationally.”
As part of the BDI rollout, 21 MDEC-recognised e-invoicing service providers will offer cost-effective and accessible e-invoicing solutions to help MSMEs comply with the government’s upcoming digital tax administration reforms.
Rizal Bin Nainy – SME Corp, Chief Executive Officer
Meanwhile, SME Corp. Malaysia CEO Rizal bin Nainy highlighted the importance of the collaboration with MDEC in bridging the digital divide. “Our joint efforts aim to raise awareness and ensure MSMEs are ready to embrace digital transformation,” he said. “By working together, we’re building a more targeted and inclusive ecosystem that provides MSMEs with the tools and support they need to thrive.”
The initiative underscores Malaysia’s broader digital economy agenda, enabling small businesses to become more competitive, resilient, and future-ready.
For further details on the Business Digitalisation Initiative, visit https://mdec.my/bdi.
