Financial sector crucial for SME growth in strategic industries says BNM
Speaking at the CGC 30th Edition Award 2024, he emphasised the need for financial institutions to facilitate SME participation in high-potential industries such as semiconductors, aerospace, and renewable energy. 'These sectors are capital-intensive and technology-driven, often posing entry barriers for smaller businesses,' he noted.
Abdul Rasheed outlined three key areas where financial institutions, including Credit Guarantee Corporation Malaysia (CGC), can contribute. First, unlocking SME opportunities in frontier industries through risk-sharing mechanisms and private capital mobilisation. 'Well-designed programmes with technical expertise can bridge information gaps, giving financial institutions confidence to support SMEs,' he said.
Second, he stressed advancing data-driven SME development, citing CGC's shift towards analytical decision-making. 'We must broaden financing access not just for startups but also scalable firms,' he added. Third, he called for sustainable financing solutions, including green and Islamic finance, alongside deeper fintech and ecosystem partnerships.
The governor's remarks align with Malaysia's policy frameworks like the New Industrial Master Plan and National Energy Transition Roadmap. 'The financial sector must evolve to support these reforms,' he concluded. - Bernama
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