The Digital Ministry is in discussions with the Ministry of Entrepreneur and Cooperatives Developments (KUSKOP) to formulate a policy aimed at helping MSMEs adopt digitalisation in their businesses.
“MSMEs fall under the jurisdiction of KUSKOP and we are specifically discussing how to ensure they can adopt technology in their businesses. We are looking at how we can create an environment that ensures cost-effective solutions for these businesses,” said Digital Minister Gobind Singh Deo.
He revealed that proposals and feedback regarding the upcoming policy has already been submitted to KUSKOP for them to take the matter to the next level.
“I hope we can conclude the discussion this month, allowing us to make decisions about policy and next steps by the end of the year,” Gobind added.
Previously, KUSKOP also had discussions with the Finance Ministry (MOF) and Human Resources Ministry (KESUMA) to address the impact of minimum wages on MSMEs, particularly to outline additional initiatives to help reduce the implications of the minimum wage increase on these businesses.
“KUSKOP takes the impact of this wage increase on MSME-owned business seriously, recoginising that a higher minimum wage will inevitably affect their cash flow and operational costs.
“In light of this, KUSKOP is ready to engage with MOF and KESUMA to develop specific initiatives that can lessen the effect of the wage increase on MSME entrepreneurs,” said KUSKOP Minister Datuk Ewon Benedick, highlighting that the wage increase indirectly encourages MSMEs to explore digitalisation and automation in their operations for long-term benefits.
“This adjustment may lead to reduced hiring to maintain cost-efficiency, with companies likely to favour contract hires over permanent positions,” he added.
Meanwhile, from January to September 2024, a total of 10,515 entrepreneurs received group financing under the Teman Tekun Scheme for a total funding of RM81.3 million.
“This programme offers group-based financing that is simpler faster, and more efficient, aimed at helping small vendors grow their businesses,” he explained.
As of 30 September 2024, 2,451 small vendors and traders received financing through the Micro-i Financing for Small Vendors and Traders (MPPK 2.0) scheme by Bank Rakyat, amounting to RM49.76 million.
“This scheme offers maximum financing of up to RM50,000 with zero interest charges,” he added.
