SMEs expected to receive higher financing allocation under Budget 2018, says Johari

KUALA LUMPUR: In view of the growing needs for financing for small and medium enterprises(SMEs), Finance Minister II Datuk Seri Johari Abdul Ghani has alluded to an increase in allocation for these enterprises in Budget 2018.

"Historically, every year you will see figures keep increasing based on the size of our gross domestic product (GDP)," Johari told reporters after the launch of Malaysia Debt Ventures Bhd's (MDV) third fund here today.

He said 98% of businesses in Malaysia are SMEs which contribute 36% and 18% to GDP and total exports respectively.

"I think it is a very significant portion of this ecosystem," he added.

In addition to that, Johari stressed on the need for alternative funding to be made available to such organisations due to the difficulties faced in securing traditional funding, especially those involved in the technology sector, which poses a high risk.

The government has till date allocated more than RM17 billion through various initiatives to promote technology exports, financing and guarantees for SMEs, in a bid to bridge the digital divide and promote technology entrepreneurship.

Earlier at the event, MDV launched a RM1 billion fund which could potentially benefit about 300 companies, with a focus on the technology sector.