With the 13th Malaysia Plan setting the ambitious goal of raising SME contribution to GDP from 39.5% in 2024 to 50% by 2030, Budget 2026 presents a pivotal opportunity to accelerate SME-led growth.
According to Koren Wines, Managing Director of Xero Asia, this requires more than vision: it demands policies, incentives and tailored support structures that enable small businesses to thrive.
Digitalisation as the Key Growth Driver
Xero highlights that cloud and digital tools have the potential to make SMEs more efficient, productive, and innovative. However, many SMEs continue to struggle with limited resources, technical expertise, affordability concerns, and data security risks.
Earlier this year, Xero’s research on e-invoicing readiness among Malaysian SMEs revealed these challenges mirror broader issues in digital adoption across the sector.
Tailored Support, Not One-Size-Fits-All
Xero stresses that SMEs are diverse in their needs:
- Larger SMEs face hurdles of scale and complexity.
- Smaller SMEs worry about costs and know-how.
To bridge these gaps, Xero recommends:
- Targeted grants and subsidies for AI and cloud adoption.
- Public-private partnerships to deliver accessible skills training.
- Practical cybersecurity guidance customised for businesses of varying sizes.
Budget 2026: A Defining Moment
With SMEs making up 97% of Malaysia’s businesses, their role in powering long-term national growth is undeniable.
“Budget 2026 is a chance to build confidence in digital adoption, equip SMEs with the tools to innovate, and ensure they remain the heartbeat of Malaysia’s economy for generations to come,” said Koren Wines.
