KUALA LUMPUR, March 26 (Bernama) -- The Alliance Bank MSME Business Outlook Report 2025 revealed that 79 per cent of Malaysian micro, small, and medium enterprises (MSMEs) anticipate revenue growth in 2025, driven by strong domestic demand and accelerated digital adoption.
It also highlighted that despite the optimism, rising operational costs and cash flow constraints remain top challenges, prompting many businesses to seek external financing to fuel expansion.
Alliance Bank group chief business and transaction banking officer Raymond Chui said MSMEs are the backbone of Malaysia’s economy, and their confidence in the face of global headwinds is a testament to their agility and ambition.
“Alliance Bank remains committed to empowering MSMEs with fast, seamless, and collateral-free financing solutions to scale their businesses sustainably, ensuring they build strong fundamentals for long-term success,” he said in a statement.
The survey also revealed that 69 per cent of the businesses anticipate the need for external financing in 2025, with bank loans being the most preferred option.
The report highlighted that businesses that sought financing in 2024 faced challenges, particularly with lengthy approval processes.
“To address this, Alliance Bank has enhanced its SME financing solutions to make business loans more accessible and hassle-free. Solutions such as Alliance Digital SME Express Financing and Alliance Digital SME Cash Flow Financing provide collateral-free loans with fast approvals and flexible repayment terms of up to seven years, helping businesses manage cash flow more effectively,” he said.
The survey revealed that 75 per cent of MSMEs plan to invest in digital tools to improve productivity and customer engagement. Social media management tools and e-commerce platforms were ranked as the most valuable investments for business expansion.
To support MSMEs in this digital shift, Alliance Bank’s BizSmart Solution provides a comprehensive digital business ecosystem that offers access to a broad suite of solutions and services at preferential rates, opportunities to reach new customers and a range of online resources to support growth.
-- BERNAMA
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