Pikom urges swift resolution of MSME digital grant disbursement delays

• Over 70% of claims reportedly unpaid beyond 6 months, far exceeding expected timelines
• Delays strain service providers & MSMEs amid rising technology costs & cash flow pressures

Pikom, the National Tech Association of Malaysia, has called for urgent action to resolve delays in the disbursement of funds under the MSME Digitalisation Grant Madani 2025, warning that prolonged delays are placing strain on service providers and MSMEs.

While the grant has enabled over 10,000 MSMEs to adopt digital solutions through more than 400 Digitalisation Partners, 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 said the delays are creating cash flow pressures for Digitalisation Partners, many of whom have already delivered solutions in full. MSMEs are also facing unexpected financial demands, including requests to settle outstanding balances, potential service disruptions, and legal risks, despite participating in an approved government programme.

The situation is further compounded by rising costs of digital infrastructure components such as memory and storage, driven by global supply volatility, which are tightening margins across the tech ecosystem. Timely disbursement is therefore critical to sustain operations and support ongoing digitalisation efforts.

Pikom chairman, Adjunct Professor (Practice) Alex Liew (pic), said, “This is not a failure of delivery, but a breakdown in execution at the disbursement stage. When companies have fulfilled their obligations yet face prolonged uncertainty in payment, it places undue strain across the 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,” he added.

Pikom has called for immediate clarity on disbursement timelines, expedited or phased payments for outstanding claims, and a review of current processes 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 said.