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THE financial sector must play a transformative role in enabling small and medium enterprises (SMEs) to participate meaningfully in Malaysia’s strategic growth industries, Bank Negara Malaysia Governor Datuk Seri Abdul Rasheed Ghaffour said on Tuesday.
Delivering the keynote address at the 30th edition of the Credit Guarantee Corporation (CGC) Awards 2024, Abdul Rasheed highlighted that SMEs must be integrated into high-potential industries including semiconductors, aerospace, renewable energy, data centres and carbon capture technologies.
He noted that such alignment is crucial as Malaysia advances its national transformation agenda through key policy frameworks such as the New Industrial Master Plan and the National Energy Transition Roadmap.
“The financial sector, including Credit Guarantee Corporation Malaysia Bhd (CGC), must evolve in tandem to support these reforms,” he said.
“In this context, I would like to highlight three areas in which CGC, together with the broader financial sector, can become part of the nation’s development roadmap.”
He emphasised that CGC and financial institutions must increase efforts to unlock access for SMEs into capital-intensive, technology-driven industries which often pose significant entry barriers for smaller enterprises.
“These industries are capital-intensive and driven by technology, and they frequently present considerable challenges to the participation of smaller businesses,” he said.
“Various mechanisms can serve as catalysts — mobilising private capital, managing innovation-related risks and providing pathways for SMEs into these high-growth sectors.”
Abdul Rasheed stressed that carefully designed, targeted programmes coupled with technical expertise can help close information gaps, enabling SMEs to transform while giving financial institutions greater confidence to extend support.
His second key focus was on advancing data-driven SME development, citing CGC’s internal transformation towards more analytical, data-centred decision-making.
“To that end, first, we must broaden access to financing not only for nascent businesses but also for those already growing and with potential to scale further,” he said.
“Second, we must invest in sustainable financing channels, including green and Islamic financial solutions, while deepening collaboration across ecosystems that integrate traditional finance with fintech, data and socio-economic tools.”
As Malaysia embarks on the 13th Malaysia Plan (RMK13), the Governor’s remarks underscore a national call for inclusive, forward-looking financial strategies that ensure SMEs are not left behind in the shift towards a high-value economy. - August 1, 2025