Financial sector must play key role in enabling SMEs in strategic growth sectors, says BNM Governor
KUALA LUMPUR: As Malaysia charts its path forward under the 13th Malaysia Plan (13MP), the financial sector must play a transformative role in enabling small and medium enterprises (SMEs) to participate meaningfully in strategic growth sectors, said Bank Negara Malaysia (BNM) governor Datuk Seri Abdul Rasheed Ghaffour.
He said this includes frontier industries such as semiconductors, aerospace, renewable energy, data centres and carbon capture technologies.
The governor said such alignment is crucial as the country advances its national transformation agenda through key policy frameworks, including 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.
"In this context, I would like to reflect on three areas where CGC, together with the broader financial sector, including Malaysia, can be part of this developmental roadmap,' Abdul Rasheed said during his keynote address at the CGC 30th Edition Award 2024 here today.
He noted that CGC and financial institutions must step up efforts to unlock opportunities for SMEs in high-potential, capital-intensive industries.
"These industries are capital-intensive and technology-driven, and often pose significant barriers to entry for smaller businesses.
"A variety of mechanisms can play a catalytic role in mobilising private capital, managing risks arising from innovation and creating entry points for SMEs into these frontier sectors,' he said.
The governor said a well-designed directive programme, paired with technical expertise, can help close information gaps -- enabling SMEs to transform and providing greater confidence for financial institutions to support them.
He said the second key focus area is advancing data-driven SME development, highlighting CGC's internal transformation towards analytical and data-centric decision-making.
"To this end, first, we must broaden financing access, not only for first-time growers, but also for growing firms with scalable potential.
"Second, we must invest in sustainable financing channels, including green and Islamic finance solutions, and we must deepen ecosystem partnerships that blend traditional finance with fintech, data and socio-economic tools,' he added. - Bernama
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