CTOS SME Biz Day 2026 – Petaling Jaya

Bismillahirrahmanirrahim

Yang Berusaha Mr Ankur Sehgal
Group Chief Executive Officer
CTOS Digital Berhad

Yang Berusaha Puan Lee Shin Mei
Chief Executive Officer

CTOS Data Systems

Distinguished guests

Ladies and gentlemen

Assalamualaikum warahmatullahi wabarakatuh, and Salam Malaysia MADANI.

1. Thank you to CTOS Data Systems for the invitation to be here this morning at CTOS SME Biz Day 2026.
   
   
2. Let me begin with a practical observation- Malaysia's micro, small and medium enterprises (MSME) are not subset of the economy- they are its backbone. With over 1.08 million firms, contributing RM652.4 billon to GDP and supporting 8.1 million jobs, their health determines our nation’s strength.
   
   
3. From a policy perspective, this means the health of our MSME sector directly influences domestic demand, labour market stability and income distribution across the country.
   
   
4. In practical terms, when MSMEs grow, the economy grows. When MSMEs face constraints, those constraints transmit across the system. So, strengthening MSMEs is not simply an objective- it is a necessity.

Government’s Effort

5. Under the MADANI Economic framework, MSMEs are positioned as a central pillar to our national strategy.
   
   
6. Our objective is clear- to position Malaysia into a competitive, high-value economy, while ensuring that growth remains inclusive across regions and income groups, anchored by fiscal discipline.
   
   
7. Achieving this requires addressing the structural constraints that MSMEs face- particularly in access to financing, productivity enhancement and integration into broader value chains.
   
   
8. Through Budget 2025 and further reinforced in Budget 2026 measures, the Government has prioritised initiatives that directly target these constraints.
   
   
9. First on financing access, Bank Negara Malaysia’s (BNM) SME Funds together with Syarikat Jaminan Pembiayaan Perniagaan (SJPP), continue to play a critical role in expanding credit availability.
   
   
10. These instruments are designed to ensure viable businesses are not constrained by collateral limitations and financing remains accessible and affordable, particularly in a more uncertain global environment.
    
    
11. Recently, Bank Negara Malaysia announced a RM5 billion Special Relief Fund to assist MSMEs facing short-term cash flow constraints and supply disruptions, with guarantees provided by SJPP. In addition, MOF allocated a further RM5 billion under SJPP, strengthening the guarantee structure and improving risk-sharing between financial institutions and the public sector.
    
    
12. These measures are deliberate. They ensure that liquidity continues to flow into the real economy, particularly to businesses that are fundamentally sound but may face short-term pressures due to external developments.
    
    
13. Second, on productivity and competitiveness, the Government continues to support digital adoption through programmes such as SME Corp’s Digitalisation Grant, implemented by MDEC and SME Corp. From an economic standpoint, digitalisation is not an option- it is a key driver of efficiency, scalability and market access.
    
    
14. Third we are advancing e-invoicing under LHDN, as part of broader tax administration reform. This aims to improve transparency, reduce leakages and strengthening compliance frameworks, while also enabling businesses to build stronger financial records.
    
    
15. I recognise that such transitions- particularly digitalisation and e-invoicing- require adjustment, especially for smaller firms with limited resources. However, from a financial perspective, better documentation and structured reporting enhance creditworthiness, traceability and ultimately access to financing. 

Financial Inclusion

Ladies and gentlemen,

16. The Consumer Credit Act 2025 marks a structural change. For the first time, Malaysia has a regulatory framework for non-bank credit providers- strengthening governance, enhancing borrower protection and improving confidence across the ecosystem.
    
    
17. This is important because the credit ecosystem is evolving. Non-bank financing is playing a larger role, particularly for MSMEs that may not fully meet traditional banking criteria.
    
    
18. Within the ecosystem, credit reporting agencies such as CTOS Data Systems are critical enabler. Reliable and accessible credit data reduces information asymmetry, improving pricing of risk and enables more efficient credit allocation.
    
    
19. In practical terms, better data allows lender to differentiate risk profiles more accurately- which means that well-performing SMEs are more likely to secure financing on better terms.
    
    
20. Financial inclusion, therefore is not simply about expanding access. It is about ensuring that access is sustainable, data-driven and aligned with risk management principles. Ecosystem and Delivery
    
    
21. This brings me to the role of platforms such as CTOS SME Biz Day.
    
    
22. Government policy sets the direction. But actual delivery depends on the broader ecosystem- financial institutions, credit infrastructure providers, technology firms and advisory networks.
    
    
23. What we see here today reflects this ecosystem in operation. Agencies such as MDEC, MATRADE, SME Corp and LHDN, working alongside financial institutions, credit reporting agencies and entrepreneurs.
    
    
24. This alignment is critical. Because for policy to be effective, it must be translated into accessible tools, financing opportunities and practical support.
    
    
25. The introduction of the Funding Pavilion is particularly commendable. It provides a structured platform for SMEs to engage directly with financiers and partners- reducing friction, improving information flow and accelerating decision-making.
    
    
26. From a policy standpoint, this is important. It moves beyond awareness to actual financial intermediation and deal flow, which is where outcomes are realised.

Closing

27. Let me conclude with a few points.
    
    
28. First, the Government's commitment to MSMEs is structural and sustained. It is not driven by short-term cycles, but by long-term economic priorities.
    
    
29. Our approach remains focused on three key areas:
    
    
    • Expanding financing access, through targeted facilities and guarantee mechanisms that support viable businesses.
    • Enhancing productivity and competitiveness, through digital adoption and capability development.
    • Strengthening fiscal and regulatory systems, to improve efficiency, transparency and sustainability.
      
      
30. Second, we will continue to take a measured and pragmatic approach. This means balancing support for growth with fiscal responsibility, ensuring that policy interventions remain both effective and sustainable.
    
    
31. Third, engagement remains important. Platforms such as this ensure that policy remains grounded in the realities faced by businesses and that feedback is incorporated into execution.
    
    
32. Finally, to all MSME owners and operators- your role in the economy is fundamental. You drive employment. You support household incomes. You anchor economic activity across regions.
    
    
33. To every MSME owner and operator: your success anchors livelihoods, sustains communities, and drives national growth. The Government’s commitment is structural, sustained, and future-focused. Remain ambitious, remain resilient — together, we build Malaysia’s future.

Wabillahi taufik wal hidayah, wassalamualaikum warahmatullahi wabarakatuh.

Terima kasih.