SME group seeks grants tied to business gains in Budget 2027
The association also wants foreign investment assessed by local procurement, supplier participation and transfers of technology and knowledge.
The SME Association of Malaysia (SMEAM) wants Budget 2027 assistance for small and medium enterprises (SMEs) to prioritise measurable business gains over the size of programme budgets. It proposed linking grants to results, including improvements in automation and business performance.
Speaking on Oct 2 at a press conference held jointly with the Malaysia Retail Chain Association (MRCA), SMEAM national president Dr Chin Chee Seong said eligibility alone should not determine support. He suggested that businesses show improvements before assistance is provided.
SMEAM outlined six priorities for the budget: easing cumulative business costs, matching financing to company growth stages, boosting productivity, connecting SMEs with foreign direct investment (FDI), supporting domestic direct investment and developing a unified gateway for SME development.
The association proposed tracking technology use, higher-skilled job creation, export access and entry into supply chains of multinational companies or government-linked companies. Other measures would cover the commercialisation of Malaysian intellectual property, productive domestic investment and the progression of micro enterprises into larger business categories.
On FDI, SMEAM sought an assessment of how many Malaysian SMEs become suppliers, how much investors procure domestically, and what technology and knowledge they transfer. Chin also advocated assistance that enables Malaysian-owned companies to reinvest locally, automate, innovate and pursue expansion at home and overseas.
SMEAM additionally urged the government to sequence major policy changes more carefully, allowing consultation and transition periods when needed. It said overlapping cost increases could squeeze SME cash flow and limit investment capacity.
