Kuala Lumpur, 26 March 2025 - The Alliance Bank MSME Business Outlook Report 2025 reveals that Malaysian micro, small, and medium enterprises (MSMEs) are navigating economic uncertainties with resilience, focusing on digitalisation and sustainability as key drivers of growth.
The survey, which gathered insights from over 230 MSMEs across various industries, found that 79% of businesses anticipate revenue growth in 2025, driven by strong domestic demand and accelerated digital adoption. Despite the optimism, rising operational costs and cash flow constraints remain top challenges, prompting many businesses to seek external financing to fuel expansion.
"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. As a bank with a long-standing relationship with the MSME sector, we recognise that they face distinctive needs and challenges at different stages of their business journey. As their trusted lifelong financial partner, 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," said Raymond Chui, Group Chief Business & Transaction Banking Officer of Alliance Bank.
As MSMEs look to expand, 69% anticipate the need for external financing in 2025, with bank loans being the most preferred option. The report highlighted that businesses that seek 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.
In addition, 75% of MSMEs plan to invest in digital tools to improve productivity and customer engagement. Social media management tools and e-commerce platforms are 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. Additionally, the Alliance Bank Business Credit Cards offers businesses greater financial flexibility and convenience in managing business expenses.
The report also highlights growing sustainability awareness, with 58% of MSMEs planning to implement ESG (Environmental, Social, and Governance) practices in 2025. A key challenge in ESG adoption is the lack of guidance as cited by many businesses.
"Beyond financing, MSMEs are increasingly recognising the value of digitalisation and sustainability but many require the right support and resources to navigate these transitions. At Alliance Bank, we are not just a financial partner – we are committed to guiding businesses throughout their business lifecycle, offering innovative financial solutions, strategic partnerships, and expert guidance that help them succeed in an evolving business landscape,” Chui added.
Looking ahead, MSMEs are focused on expanding their customer base, entering new markets, diversifying product offerings and reducing costs through digitalisation. Strengthening brand presence and improving financial resilience are also among their top priorities.
The Alliance Bank MSME Business Outlook Report 2025 serves as a valuable resource for businesses, policymakers, and financial institutions by providing key insights into emerging trends and challenges shaping the Malaysian MSME sector.
To download the full report, please visit
https://www.alliancebank.com.my/MSME-Report-2025.
For more information on Alliance Bank’s digital financing solutions, please visit
https://www.alliancebank.com.my/Business/SME/Loan-Listing.
