KUALA LUMPUR (Nov 27): Finance Minister II Datuk Seri Amir Hamzah Azizan on Thursday urged a “dual-engine” strategy of government support and private-sector financing to help micro, small and medium enterprises (MSMEs) scale up amid rapid technological disruption.

In his opening remarks at the National Economic Outlook Conference 2025, he said fast-evolving technologies from artificial intelligence (AI) to automation are increasing job risks and competitive pressures, especially for smaller firms. These challenges are compounded by broader structural issues such as an ageing population and rising retirement insecurity, he added.

MSMEs contributed RM652.4 billion to Malaysia’s gross domestic product in 2024, or 39.5% of total output, and accounted for 48.7% of national employment, according to the Department of Statistics Malaysia.

To lift MSMEs up the value chain, Amir Hamzah said the government will continue strengthening strategic partnerships with government-linked companies, and rolling out initiatives including strategic investment funds, working-capital support, project financing, and capacity-building programmes.

Targeted measures will also improve logistics, ease certification processes such as halal approvals, and expand access to export markets, he added.

However, he said these efforts must be complemented by private-sector innovation, urging financial institutions to develop new funding solutions and update risk-management models to keep pace with technological shifts.

“Innovation is not the work of a few, but the collective effort of a nation. Whether through government policy or private enterprise, every contribution matters. With this, Malaysia can move confidently towards becoming a truly innovation-driven economy,” he said.