SME Malaysia Calls for Outcome-Driven Budget 2027 to Build Global Malaysian Companies

Kuala lumpur: The SME Association of Malaysia (SME Malaysia) has called for Budget 2027 to focus on measurable outcomes, not merely grants, financing, and incentives, with success judged by productivity, investment, growth, and competitiveness. According to BERNAMA News Agency, in its Budget 2027 Proposal, the association highlighted that small and medium enterprises (SMEs) are grappling with rising labor, utilities, financing, taxation, and compliance costs while investing in digitalization, automation, artificial intelligence (AI), environmental, social and governance (ESG) readiness, and workforce capabilities. In a statement today, SME Malaysia proposed a clear development pathway for Malaysian SMEs, encompassing stages from survival and formalization of their businesses to transformation, scaling, and ultimately competing in global markets. The association's national president, Dr. Chin Chee Seong, and National Council Member Prof. Anthony Dass emphasized that while Malaysia has a broad range of SME su pport programs, the priority is to better coordinate and simplify access to these programs, ensuring they deliver measurable business outcomes. The effectiveness of support from Budget 2029, as suggested by SME Malaysia, should be progressively measured through indicators such as SMEs actually receiving support, approval and disbursement times, automation and AI adoption, productivity gains, private investment and domestic direct investment (DDI), supplier development, domestic procurement, commercialization, and exports. SME Malaysia also advocated for a cumulative SME cost and regulatory impact assessment covering labor, utilities, financing, the Sales and Service Tax (SST), e-Invoicing, licensing, and compliance. They urged that given current cost pressures, any further increase to the current RM1,700 minimum wage should be deferred, while productivity, automation, skills, and business expansion are strengthened. Other proposals from SME Malaysia include an SME life-cycle financing and investment framew ork that combines grants, guarantees, debt, equity, co-investment, and private capital. They also called for stronger foreign direct investment (FDI) spillovers through local procurement, technology, and talent transfer, integrated support for automation, AI, skills, and ESG, and robust support to help SMEs move from research and development (R and D) through commercialization to business scale-up. In addition, SME Malaysia proposed an integrated SME development gateway that provides each business with a single profile, diagnostic assessment, and tailored development pathway to connect it with the support it needs. The association concluded that Budget 2027 should ultimately aim to build Malaysian companies capable of competing regionally and globally.