KUALA LUMPUR (Oct 22): The Ministry of Entrepreneur and Cooperatives Development (KUSKOP) has unveiled the SCALE Action Plan for 2027, outlining five strategic priorities to address long-standing structural challenges faced by micro, small and medium enterprises (MSMEs).
Minister Steven Sim said the action plan comprises five strategic priorities, which make up the acronym SCALE, namely S - SME Redefinition, C - Cash Flow Protection, A - AI for MSMEs, L - Local Content Requirement, and E - Easing MSME Financing.
He said KUSKOP's focus in 2026 had been to accelerate productivity, reduce bureaucracy, improve capital accessibility, and drive market access through its ABCD strategy.
“While KUSKOP’s ABCD strategy would continue to address immediate business challenges, the SCALE Action Plan would complement the existing strategy by focusing on longer-term structural reforms to help MSMEs grow, compete, and move up the value chain,” he said when announcing the plan at the SAMENTA SME CEO Forum 2026.
For SME Redefinition, he said KUSKOP will review Malaysia's existing SME definition, which has remained in place since 2013, to reflect changes in the business landscape and align with international best practices.
For Cash Flow Protection, the ministry will look into measures to protect MSMEs against delayed payments and prolonged payment retention. The initiative aims to strengthen the financial resilience of MSMEs and prevent smaller businesses from effectively becoming interest-free credit providers to larger companies.
“In terms of technology, or AI for MSMEs, KUSKOP will prioritise helping MSMEs adopt AI across different stages of business operations to increase productivity and create greater value.
“AI could enable businesses to increase output and productivity without relying solely on longer working hours, supporting Malaysia's transition from a ‘Made in Malaysia’ to a ‘Made by Malaysia’ growth model,” Sim said.
Under the Local Content Requirement priority, KUSKOP will explore the requirements to ensure Malaysian MSMEs benefit more directly from domestic economic growth and major investments, including foreign direct investment.
He also said that the ministry would consider appropriate guidelines and, where necessary, legislative measures to strengthen local MSME participation in supply chains and investment projects.
As for Easing MSME Financing priority, Sim said KUSKOP will work with relevant ministries, financial institutions and Bank Negara Malaysia to address outdated regulations and other barriers that hinder MSMEs' access to financing, and will also explore ways to improve access to alternative capital-raising mechanisms beyond traditional financial institutions.
The minister also called on industry players to take advantage of the opportunities under Budget 2027 and prepare their businesses for the next phase of growth.
Meanwhile, in a statement, KUSKOP said that based on SME Corp Malaysia's calculation, total MSME-related support under Budget 2027 amounts to RM67.9 billion, covering financing, guarantees, grants, training, resources and programmes.
This includes RM57 billion in loan and financing guarantee facilities, up from RM50 billion in 2026.
KUSKOP had channelled RM10.5 billion to approximately 295,000 entrepreneurs and MSMEs nationwide as of 30 September 2026, against its target of RM15 billion for the year.
Uploaded by Lam Seng Fatt