26/03/2025

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WEDNESDAY | MAR 26, 2025

RM1.5b programme to help MSMEs adopt digital tools

Teh Hong Piow’s daughter acquires Singapore Good Class Bungalow for S$93.9m

VFS exceeds expectations, the government will consider expanding the programme further,” he added. Acting group president and CEO Datuk Dr Mohammad Hardee Ibrahim said VFS reflects SME Bank’s commitment to tailored financing for small businesses. “We recognise small entrepreneurs as key contributors to the SME ecosystem. Through VFS, we aim to encourage innovation and strategic entre preneurship across Malaysia.” The launch was officiated by Ramanan, alongside ministry secretary-general Datuk Seri Khairul Dzaimee Daud, SME Bank chairman Datuk Muslim Hussain and Hardee. The scheme aligns with SME Bank’s other flagship initiatives, including the Jaguh Serantau Programme and HalalBiz Financing Programme, and complements National Budget 2025 strategies. PETALING JAYA: Diona Teh Li Shian, daughter of the late Tan Sri Teh Hong Piow, the founder of Public Bank, has purchased a Good Class Bungalow currently under construction in Singapore’s Tanglin Hill for S$93.9 million (RM310.8 million), setting a record price per square foot for a luxury mansion in the city-state. The transaction set a record price of about S$6,197 per square foot. The Business Times first reported on the deal in July. According to Bloomberg News , Good Class Bungalows are among the most sought-after properties in Singapore, where land is limited, with only around 2,800 available and ownership mainly restricted to locals. The purchased bungalow is near Orchard Road’s shopping district and several embassies, sitting on a 1,408-square-metre (15,150-square-foot) plot. Teh did not immediately respond to a query sent by Bloomberg News , while a spokesperson for Public Bank declined to comment. The report said Meir Homes, a local developer of Good Class Bungalows, is building the mansion on the plot, which was acquired for S$30 million in 2022, according to property records. Its principal Sebestian Soh declined to comment. The new two-storey house with a basement has a total floor area of 2,756 square metres. It will include Japanese oak in its interior and imported materials from Europe, as well as stone cladding on the outside, according to marketing materials seen by Bloomberg News. The property will also have a 25-metre pool with a tanning deck, a walk-in wine chiller and an 18-seat theatre. The younger Teh, a Singapore citizen, is one of four children of the late Teh. She has been a public face of the family since the patriarch died in 2022. Public Bank has since grown into Malaysia’s second-biggest lender by market value. The family still controls over a fifth of the bank’s shares, according to data compiled by Bloomberg .

Ű BY HAYATUN RAZAK sunbiz@thesundaily.com

o MDEC spearheads Business Digitalisation Initiative, 21 e-invoicing service providers offer free and affordable packages to assist micro, small and medium firms transition

KUALA LUMPUR: The Digital Ministry, through Malaysia Digital Economy Corp oration (MDEC), is rolling out a RM1.5 billion “Business Digitalisation Initiative” aimed at helping MSMEs (micro, small, and medium enterprises) adopt digital tools, including e-invoicing systems and access to financing. Digital Minister Gobind Singh Deo said more than 60% of businesses in Malaysia are still at a basic level of digitalisation, which translates to more than 650,000 MSMEs that have yet to fully adopt digital technology. “The Business Digitalisation Initiative is like the beginning of a long journey. It is expected to take several years to deliver significant impact, but I hope to see small successes along the way that benefit entrepreneurs and the national economy,” he said at the launch yesterday. Gobind said the government is aware that cost is a major challenge faced by MSMEs in adopting digital technology, particularly in the implementation and adoption of e invoicing. “The government has identified 21 e-invoicing service providers that are offering freemium and affordable packages to MSMEs, to help them transition to an e invoicing system without the burden of high costs.” He added that the implementation of e invoicing is not solely for tax compliance. “The Ministry of Digital, through MDEC, is implementing e-invoicing to digitalise businesses using the Peppol framework, which is the most widely adopted e invoicing standard globally.” The ministry will review the initiative’s progress within the next three to six months, Gobind said. “We’ll look at the data, study how we can improve, and ensure that resources reach the right places so we can maximise the impact of this initiative. Ultimately, we want to see these businesses thrive.” At the event, MDEC formalised several memorandums of understanding (MoUs) to KUALA LUMPUR: Small Medium Enterprise Development Bank Malaysia Bhd (SME Bank) has introduced Vanigham Financing Scheme (VFS), a RM50 million financing facility aimed at empowering micro and small enterprises within the Indian business community. The scheme, introduced as part of SME Bank’s financial inclusion strategy, offers financing between RM100,000 and RM300,000 with a government-subsidised profit rate starting at 3.75%, one of the lowest in the market. Applications for VFS are open until Dec 31, 2027, providing affordable financing for asset acquisition, commercial vehicles, and work ing capital, allowing entrepreneurs to scale their businesses, expand market reach, and enhance competitiveness.

Anuar (sixth from left) and Gobind (seventh from left) at the launch of the Business Digitalisation Initiative.

proofing their growth through digital adoption. “Our approach includes tailored support, strategic partnerships, access to financing, and, freemium and affordable e-invoicing solutions built on the Peppol framework, making digitalisation more accessible while encouraging MSMEs to scale locally and globally. “In addition to today’s exchange of MoUs, we are currently in negotiations with global cloud service providers such as AWS, Oracle, Tencent, Microsoft, and several other companies, with the hope of enabling easier access for MSMEs to their wide range of solutions,” said Anuar. Also present at the launch were representatives from Maybank, TM, Boost Holdings, GX Bank, TnG Digital, Funding Societies, Capbay, CTOS Digital, Grab Car and ICT Zone Ventures. between RM100,000 and RM300,000, with profit rates ranging from 3.75% to 6%, supported by a 1% government subsidy. “For businesses requiring less than RM100,000, alternative financing options are available. SME Bank also provides other financing programmes for those needing over RM300,000, including the Jaguh Serantau Programme, which offers up to RM10 million for exporters, and Contract Financing, designed for businesses in the supply and construction sectors,” he said. Ramanan said the overwhelming success of similar financing initiatives highlights the strong demand for accessible SME funding. “For instance, the Tekun Nasional financing limit was increased from RM30,000 to RM100,000 due to high demand, while SME Bank’s BriefEye programme was fully utilised within a short period, leading to additional funding requests. If demand for

foster collaboration with SME Corp Malaysia, financial institutions, digital banks, peer-to-peer lending platforms and local service providers. The MoUs involve local digital solution providers offering digital solutions to provide digital tools to support business digitalisation and facilitate access to financing to help MSMEs make the tran sition. “This collaboration is important to ensure that business owners understand the importance of financial management through digital methods, which enables them to gain more benefits – especially in terms of support and guarantees for business financing,” Gobind said. MDEC CEO Anuar Fariz Fadzil said the Business Digitalisation Initiative aims to uplift MSMEs by building up their resilience, enhancing competitiveness and future Deputy Entrepreneur Development and Cooperatives Minister Datuk Seri Ramanan Ramakrishnan said MSMEs are key drivers of Malaysia’s economy, contributing RM613.1 billion in 2023. This year, they are projected to account for 45% of gross domestic product and 25% of total exports. “Government-linked entities must actively support this sector, particularly in financing, to drive expansion. SME Bank’s launch of the VFS is timely, aligning with the Madani Government’s agenda to foster inclusivity, diversity, and a sustainable business eco system,” he told reporters at the launch yesterday. Following discussions with Prime Minister Datuk Seri Anwar Ibrahim, Ramanan said, the government approved an additional 1% subsidy on the profit rate to make financing more affordable. He noted that VFS offers financing

SME Bank unveils Vanigham Financing Scheme to support Indian enterprises Ű BY AIMIE SHAZRIE sunbiz@thesundaily.com