They said this would help them recover from the Covid-19 pandemic to make the transition to Industrial Revolution 4.0 (IR4.0).
Small and Medium Enterprises Association of Malaysia (Samenta) chairman William Ng said grants would help to empower SMEs in a post-Covid-19 business landscape while SME Association of Malaysia president Ding Hong Sing is appealing for financial assistance to to help SMEs go high-tech.
Ng said a cohesive and structured approach was needed to support SMEs. “We hope the government will increase grants for automation and digitalisation via agencies like Malaysia Digital Economy Corporation and SME Corp,” he said.
“Matching grants are needed to engage expertise and mentors to guide SMEs through the implementation process,” he told Bernama.
Ding agreed, saying that SMEs needed very high-tech machinery for automation and digitalisation in order to expand and do well in their businesses.
“The automation facility is important to solve the problem of the shortage of foreign workers, especially in the 3D sector (dirty, dangerous, and difficult),” he said.
“Usually they need at least RM5 million, depending on the type of machine. We propose that the government provides 100% financing at zero interest for a tenure of eight to 10 years,” he said.
SMEs now get up to 90% financing at 3.5% to 4% interest.
Under budget 2022, the government allocated RM100 million in smart automation matching grants to 200 manufacturing and service companies. Banks also offered financing facilities for SME automation and digitalisation.
Ding said that when the budget 2023 was tabled on Oct 7, there should also be a focus on measures to ease the cash flow of SMEs.
“SMEs are still facing very tight cashflow and I think the idea is to provide more financing assistance with lower interest to lessen their burden,” he said.
Recently, Prime Minister Ismail Sabri Yaakob said the government would discuss the proposal to offer a moratorium to SMEs soon, while finance minister Tengku Zafrul Aziz expressed hope that banks and Bank Negara Malaysia (BNM) would continue to support SMEs that were genuinely facing difficulties.