Kuala Lampur:GX Bank chief executive officer Kaushik Chowdhury has emphasized the need for the government to extend targeted stamp duty exemptions for small-ticket loans issued by digital banks, in an effort to reduce borrowing costs for small businesses and lower-income individuals in Budget 2027. According to BERNAMA News Agency, Chowdhury noted that these measures could lead to significant savings for businesses, especially after the government previously raised the loan or financing limit eligible for stamp duty exemption under the Micro Financing Scheme to RM100,000 from RM50,000 in Budget 2025. Chowdhury highlighted that digital banks have the capacity to transfer these savings directly to hawkers, gig workers, and micro, small, and medium enterprises (MSMEs), thereby lowering their borrowing expenses. He also suggested expanding government-backed guarantee schemes, such as the RM10 billion Bank Negara Malaysia-Credit Guarantee Corporation Malaysia Bhd (BNM-CGC) Guarantee Scheme, to bolster digital le nding. By utilizing alternative underwriting data like real-time cash flows and e-commerce transactions, digital banks could offer low-cost, collateral-free working capital to small businesses experiencing tight profit margins, Chowdhury explained. He further mentioned that digital banks, with their technological capabilities and emphasis on financial inclusion, have the potential to enhance access to financial services and contribute to economic growth. Chowdhury also advocated for tax incentives and public matching grants for financial institutions investing in real-time artificial intelligence-based fraud detection systems. Such initiatives would enhance anti-scam measures throughout the financial system and help banks manage the costs of security technology without burdening lower-income consumers. Prime Minister Datuk Seri Anwar Ibrahim is expected to present Budget 2027 on October 9.