Petaling Jaya, 17 April – PIKOM, The National Tech Association of Malaysia, has called for urgent action to address delays in the disbursement of funds under the MSME Digitalisation Grant MADANI 2025, echoing concerns raised by the SME Association of Malaysia.
While the grant has successfully enabled over 10,000 MSMEs to adopt digital solutions through more than 400 Digitalisation Partners (DPs), industry feedback indicates that a significant portion of claims—estimated at over 70%—remain unpaid beyond six months, far exceeding the previously communicated timeline of one to two weeks .
PIKOM noted that the delay is placing considerable strain on both service providers and MSMEs. Digitalisation Partners, many of whom have already delivered solutions in full, are facing mounting cash flow pressures. At the same time, MSMEs are being exposed to unexpected financial demands, including requests to settle outstanding balances, potential service disruptions, and legal risks—despite acting in accordance with an approved government programme .
The situation is further compounded by current market conditions, where rising costs of digital infrastructure components such as memory and storage—driven by global supply volatility—are tightening margins across the tech ecosystem. Timely disbursement from completed projects is therefore critical to sustain operations and support ongoing digitalisation efforts.
PIKOM Chairman, Adjunct Professor (Practice) Alex Liew, said:
“This is not a failure of delivery, but a breakdown in execution at the disbursement stage. When companies have fulfilled their obligations and yet face prolonged uncertainty in payment, it places undue strain across the entire ecosystem—from service providers to MSMEs. In the current environment of rising technology costs and tighter cash flows, resolving this issue promptly is critical to sustaining industry momentum and confidence.”
PIKOM has called for immediate clarity on disbursement timelines, expedited or phased payments for outstanding claims, and a review of the current process to ensure stronger execution in future programmes.
“Timely and transparent resolution will be key to preserving trust in government-led digital initiatives and reinforcing Malaysia’s position as a reliable and competitive digital economy,” Liew added.