Selangor Announces RM5 Million Digital Matching Grant For SMEs | Business Today

A person typing on the keyboard of a laptop

The Selangor state government is inviting SMEs to apply for its Digital Matching Grant, offering up to RM5 million to help entrepreneurs to digitalise their businesses.

Chief Minister, Amirudin Shari said the state has allocated a 50 percent matching grant or a maximum of RM5,000 to each SME to subscribe to the chosen digital service providers and the initiative is expected to benefit at least 1,000 SMEs in Selangor.

“SMEs that lack the resources to digitalise their businesses are invited to apply for this grant to strengthen the digital reach of their businesses.

“The state wants to assure that merchants and consumers will benefit from the various initiatives and grants provided and It is hoped that many Selangor SMEs will apply for the grant and enjoy the benefits,” Amiruddin said.

Amirudin also stated that the digitalisation agenda is important as it leads to the creation of a new economy that would contribute to new talents and employment opportunities.

Amirudin stated that the digitalisation grant proposal would be reviewed by a special evaluation the committee chaired by the former chief executive officer of the Malaysia Digital Economy Corporation (MDEC) Ng Wan Peng.

According to SME Corp numbers, Selangor currently houses approximately 180,000 SMEs, accounting for 20 percent of total shares in the region.

Meanwhile, Chief Executive Officer (CEO) Finexus Group, Clement Loh stated that the checking out process is a paramount experience for any online shoppers, which inadvertently affects the whole shopping experience, and ultimately conversion and a returning customer.

“This is why we aspire to help SMEs of all sizes, from a home-based business owner to a medium-sized SME, in streamlining their payment process into an effortless, even enjoyable, experience for their patrons,” said Clement Loh.

According to Malaysian Economic Statistics Review (MESR) Volume 3/2021, a total of 373,213 entities registered their business under the online category with the Companies Commission of Malaysia, evidence of traction in e-commerce adoption between March 1 and October 31 last year.

MESR said SMEs need help during this crucial period especially when retail trade-in Malaysia has contracted 2.5 percent or RM1.2 billion to register RM45.6 billion in January 2021 year-on-year due to the decrease in sales of non-essential goods.

“Interestingly retail trade not in stores, stalls, or markets grew the most, at 9 percent, indicating a potential rise in E-commerce activity,” MERS said.