KUALA LUMPUR, 11 November 2026 – The Malaysia Digital Economy Corporation (MDEC), an agency under the Ministry of Digital, today exchanged Memorandums of Understanding (MOUs) with seven financing partners to widen financing opportunities for Malaysian small and medium enterprises (SMEs) through the National E-Invoice Financing Exchange (NEFX).

While NEFX aims to improve access to financing for SMEs, it also seeks to address some of the key challenges faced by banks and other financing institutions in assessing creditworthiness, managing lending risks and evaluating repayment capacity. These challenges are particularly significant when dealing with SMEs with limited credit histories, insufficient collateral or financial records.

MDEC Chairman Ganesh Kumar Bangah said that NEFX seeks to address the financing challenges faced by SMEs while helping financial institutions make more informed lending decisions.

“Access to financing is a two-sided equation: SMEs need capital to grow, while financial institutions must assess creditworthiness, manage risks and ensure that lending decisions are commercially sound,” he said.

“NEFX is not about relaxing lending standards. Instead, by leveraging trusted digital transaction data, it aims to provide greater transparency, support better-informed lending decisions and create opportunities for financial institutions to expand their SME financing portfolios while managing risks more effectively.”

Meanwhile, MDEC Acting CEO Azlan Sharom said that NEFX is being developed as an open, secure and AI-enabled digital financing marketplace that leverages authenticated e-Invoice data exchanged through the Peppol network, together with other relevant business information shared with SMEs’ consent.

“The platform aims to provide financing institutions with greater visibility into business transactions, supported by AI-enabled analysis,” said Azlan.

“NEFX’s planned pilot capabilities include data assessment, prevention of double financing, loan tracking and consent management, while credit approvals, disbursements and collections remain the responsibility of financing institutions.”

For SMEs, particularly those facing cash flow pressures or lacking conventional credit histories, NEFX aims to provide improved access to working capital to sustain operations and support growth.

The seven pioneering financing partners are CIMB Bank, CIMB Islamic Bank, AFFIN Bank, Alliance Bank, Funding Societies, CapBay and Bettr.

Azlan also emphasised the importance of involving financing institutions from the outset to ensure that NEFX meets their operational and lending requirements.

“Financial institutions have established lending criteria, risk management frameworks and operational requirements. By involving them from the outset, we can develop NEFX around these practical considerations while creating a more efficient and scalable financing ecosystem that benefits Malaysian businesses,” added Azlan.

The pioneering partners will help shape NEFX’s data requirements, financing processes and integration ahead of a wider rollout, including through the proposed NEFX Founding Members Advisory Panel.

The event also recognised ecosystem partners MyDigital ID and CGC Digital, alongside five Peppol-Ready Solution Providers (PRSPs), namely E Stream MSC, QNE Software Malaysia, Xero Software Malaysia, Radiant Globaltech and Precomp.

As Malaysia’s Peppol Authority, MDEC is advancing interoperable e-Invoicing to improve business efficiency and encourage digital adoption, with NEFX providing an additional incentive through potential access to financing.

Ganesh explained that, beyond NEFX, MDEC is also advancing the National AI Compute Exchange (NACX), which aims to broaden access to AI computing resources for Malaysian businesses.

“While NEFX seeks to improve access to financing, NACX aims to broaden access to the computing capabilities needed to develop and adopt AI solutions,” he said.

“Together, both initiatives form part of MDEC’s wider strategy to help SMEs become more productive, competitive and ultimately AI-driven enterprises, supporting Malaysia’s ambition to become an AI Nation by 2030.”

NEFX also supports the Malaysia Digital 2030 (MD2030) Action Plan by encouraging greater digitalisation and participation in the digital economy.

For more information on MDEC and its initiatives, please visit www.mdec.com.my.

This content is provided by Malaysia Digital Economy Corporation

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