financial sector

by SHAUQI WAHAB

AS MALAYSIA progresses under the 13th Malaysia Plan (MP13), Bank Negara Malaysia (BNM) governor Datuk Seri Abdul Rasheed Ghaffour stressed that the financial sector must take on a transformative role in enabling small and medium enterprises (SMEs) to actively participate in strategic, high-growth sectors.

He said this includes emerging industries such as semiconductors, aerospace, renewable energy (RE), data centres and carbon capture technologies — all of which are key to the country’s national transformation agenda.

These ambitions are supported by policy frameworks like the New Industrial Master Plan (NIMP) and the National Energy Transition Roadmap (NETR).

“The financial sector, including Credit Guarantee Corp (M) Bhd (CGC), must evolve in tandem to support these reforms,” he said in his keynote speech at the CGC 30th Edition Award 2024 on Thursday.

He outlined three key areas in which CGC and the broader financial ecosystem can align with national development efforts.

The first involves increasing access for SMEs to participate in capital-intensive and technologically advanced sectors.

“These industries are capital-intensive and technology-driven, and often pose significant barriers to entry for smaller businesses,” he added.

He acknowledged that various mechanisms — such as risk management tools, capital mobilisation strategies and innovation-friendly financial structures — can serve as catalysts to help SMEs enter these sectors.

The governor also discussed the need for directive programmes that incorporate technical expertise to bridge information gaps.

These efforts would support SME transformation and boost financial institutions’ confidence to fund them.

The second area of focus is fostering data-driven SME development.

He highlighted CGC’s internal shift towards data-centric decision-making as an example of the direction needed.

“To this end, first, we must broaden financing access, not only for first-time growers, but also for growing firms with scalable potential.

“Second, we must invest in sustainable financing channels, including green and Islamic finance solutions, and we must deepen ecosystem partnerships that blend traditional finance with fintech, data and socio-economic tools,” he added.

Through these reforms, the financial sector can help Malaysia build a more inclusive and resilient economy, while supporting national goals for industrial advancement and sustainability.