Digital ministry to seek incentives, prioritise talent support for MSMEs in 2025 Budget

Incentives and talent support to empower small businesses are among matters the digital ministry will prioritise in the upcoming 2025 budget, digital minister Gobind Singh Deo reportedly said. 

The minister reportedly said that while technology has the potential to aid SMEs and MSMEs, a digital infrastructure is insufficient if it is not effectively utilised. 

According to New Straits Times, Deo reportedly told a press conference at the Putrajaya International Convention Centre on Tuesday (13 August) that the main challenge is finding ways to use incentives to encourage more SMEs and MSMEs to adopt available digital technologies. 

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Deo reportedly said that discussions would be held with the prime minister and finance ministry to focus on the types of incentives that could be introduced. 

In addition, the minister reportedly stressed the importance of addressing talent needs in the digital industry. 

Deo reportedly said that incentives are important to encourage industries to hire and train skilled workers, reported The Star. 

He reportedly added that the ministry wants to identify which digital jobs will see an increased demand in the next five years and ensure that there are talents to meet those needs. 

The findings would reportedly be reviewed by the ministry before a session with the finance ministry on 23 August. 

Last week, it was reported that Malaysia's digital investment soared to RM66.22 billion in the first half of this year, demonstrating robust growth and resilience of the digital economy despite global geopolitical tensions. 

Deo reportedly said that this was a significant achievement, noting that the amount has already surpassed the full-year digital investment for 2023, which was RM46.2 billion at the time. 

According to The Edge Malaysia, the minister attributed the strong upward trajectory to stronger investor confidence and the economy's forecast growth of 4-5% this year. 

He reportedly added that the investment inflow has created 25,498 jobs in the first half of the year, surpassing the 22,258-tally recorded in 2023 and said that the digital sector continues to be a powerhouse for high-skilled, high-income employment.

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