It is an honour to be with you this evening to celebrate the achievements of our SMEs and the partners who continue to support the growth and resilience of SMEs in Malaysia.

Allow me to thank Credit Guarantee Corporation Malaysia Berhad (CGC) for the kind invitation, and more importantly, for your continued role in strengthening access to financing for the unserved and underserved SMEs.

To all award recipients: SMEs, financial institutions, and non-bank partners; congratulations! These are not just achievements, but key contributions to nation-building.

Ladies and gentlemen,

Despite global uncertainties – from shifting trade policies to geopolitical tensions – Malaysia’s economy remains resilient. Our GDP is projected to grow between 4% and 4.8% in 2025, supported by strong domestic demand, favourable labour market conditions, and ongoing investments. Inflation is expected to stay moderate, providing a stable environment for structural reforms to continue to take place.

The position of strength gives us confidence to move forward, and it is our SMEs who will be central to that journey by driving innovation, creating jobs and fostering economic growth and diversification. SMEs are the backbone of Malaysia’s economy and lifeblood of our entrepreneurship and inclusion agenda. They account for 97% of business establishments in Malaysia, 39% of GDP, and nearly half of employment created by SMEs^[1].

That is why the role of financial institutions and CGC in supporting SMEs remains critical. I would like to acknowledge the key contributions that financial institutions and CGC have played in supporting SMEs, particularly during the pandemic, as mentioned by Dato’ Mohammed Hussein, and subsequent recovery phase.

The partnership between CGC and financial institutions has enabled tens of thousands of SMEs to access financing they otherwise might not have received. Between 2020 and 2023, CGC unlocked financing of more than RM20 billion for over 58,000 SMEs. In 2024 alone, CGC extended RM2.8 billion in guarantees, which enabled the financial sector to further provide RM4 billion to over 6,500 SMEs^[2]. These efforts have helped sustain jobs, protect livelihoods, and ensure viable businesses were not left behind during times of stress.

CGC’s innovation arm, CGC Digital, is also strengthening partnerships with fintech lenders including Peer-to-Peer (P2P) and Equity Crowdfunding (ECF) platforms to further broaden access to financing, particularly for underserved micro and small businesses.

Looking ahead, SMEs now stand at a critical juncture. Global trade is shifting, geopolitical risks are rising, and technological advancements particularly in AI are reshaping business models at unprecedented speed. As we celebrate SMEs’ achievements, we must also ensure they remain competitive and resilient in a rapidly changing environment – transforming through automation, digitalisation, and sustainable practices.

Indeed, in the pursuit of our national transformation agenda, including through the New Industrial Masterplan (NIMP), National Energy Transition Roadmap (NETR) and the forthcoming 13th Malaysia Plan which was announced this morning, the financial sector, including 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 Bank Negara Malaysia, can deepen its developmental impact.

First: Enabling SME participation in strategic growth sectors.

Sectors like semiconductors, aerospace, renewable energy, data centres, and carbon capture technologies are capital-intensive, technology-driven, and often face barriers in accessing financing.

Guarantee mechanisms can play a catalytic role in crowding in private capital, managing risk arising from innovation and creating entry points for SMEs into these frontier industries. For example, in supporting SMEs' adoption of IR4.0 under MITI’s TechUP programme, CGC could work with financial institutions and relevant agencies to develop integrated financing and advisory packages.

A well-designed guarantee programme, paired with technical expertise, can help close information gaps, enabling SMEs to transform, and financial institutions to finance them more confidently.

Second: Advancing data-driven SME financing.

We commend CGC’s internal transformation towards analytics and data-centric decision-making. This foundation opens the door to greater innovation in alternative credit scoring models, operational efficiency, and more tailored SME solutions.

With insights from CGC’s guarantee experience, imSME platform, and digital partnerships, there is real potential for us to build tools that reduce dependence on traditional credit assessments without compromising sound risk management.

This is especially valuable in segments where servicing costs are high, and visibility is limited. Moreover, a strong data-driven framework will enhance impact measurement helping CGC better capture its socio-economic contributions, beyond financial performance alone.

Third: Strengthening SME resilience and excellence.

Financing alone is not enough. SMEs need guidance, tools, and representation especially in today’s fast-moving environment^[3].

CGC’s structured development programmes have benefitted over 8,700 SMEs, helping improve financial literacy, digital capabilities, and access to markets. Its Financial Advisory Services, including through MyKNP (Khidmat Nasihat Pembiayaan), have empowered businesses to better understand their financial standing and prepare for future financing.

I recall the example of a fisheries business in East Malaysia. Thanks to the support by MyKNP, this business was able to update its financial records to reflect its true profitability – as a result, it could qualify for much-needed working capital.

These types of interventions are not just helpful—they are transformational. My hope is that CGC will continue to expand partnerships much like this one, scale these services, and guide SMEs across different stages of their financing journey.

At the same time, we must not lose sight of another crucial group of businesses in Malaysia – that is, our mid-tier companies (MTCs). Though fewer in number, MTCs also play a strategic role in Malaysia’s growth trajectory.

These are firms with the potential to anchor supply chains, export at scale, and lead industrial upgrading. Many remain small by global standards, with limited access to sophisticated financing or risk capital.

Supporting their growth is not a departure from the SME mandate. It is a continuation of it. When SMEs scale up into mid-tier firms, they create new jobs, demand for suppliers, and competitive value chains.

With that in mind, what is vital is that the initiatives being rolled out – be they guarantee mechanisms or financial programmes – are agile and responsive of the needs of firms that are at various inflection points of growth.

Distinguished guests,

At Bank Negara Malaysia, our focus remains on ensuring that the financial system supports real economic activity with inclusivity, accountability, and long-term resilience at its core. In doing so, we continue to look forward to collaborate with all stakeholders - particularly with three aspirations in mind:

To this end:

• First, we must broaden financing access, not only for first-time borrowers, but for growing firms with scalable potential.
• Second, we must invest in sustainable financing channels, including green and Islamic finance solutions,
• And third, we must deepen ecosystem partnerships that blend traditional finance with fintech, data, and development tools.

As we honour tonight’s award winners, let us also recognise the responsibility that comes with success. I encourage all the award recipients – both SMEs and financial institutions – to pay it forward:

• To SMEs, we encourage you to lead by example. Mentor fellow entrepreneurs, share best practices, and help foster a culture of innovation and resilience within the community.
• To financial institutions, deepen your commitment to impact-driven financing. Champion initiatives that deliver meaningful social and environmental outcomes alongside financial sustainability.

Let us continue to build a financial ecosystem that not only supports firms at their beginnings but accompanies them through every stage of growth.

Congratulations once again to all award recipients.

Thank you, and I wish everyone a pleasant evening.

^[1] Source: Department of Statistics Malaysia 2023. SME 2024 Performance Statistics is expected to be released end-July, based on DOSM’s Advance Release Calendar

^[2] Source: CGC Annual Report 2024

^[3] Adapted from: Malaysia’s Experience with the SME Masterplan, World Bank, 2020.