Business owner with her products wrapped in boxes, ready to grow internationally through Budget 2025 initiatives.

Budget 2025: What MSMEs Need to Know to Go Beyond Borders

On the fence about taking your products abroad? Budget 2025 might be just what you need. Discover 6 key initiatives that help MSMEs expand their footprint.
5 mins read

The journey to expanding beyond Malaysia’s borders can feel overwhelming, especially if you’re navigating it for the first time. 

But here’s some good news: Malaysia’s Budget 2025 is packed with initiatives designed to empower MSMEs like yours to dream bigger and reach new markets. If you’ve been considering taking that step, now might just be the right time.

We’re here to break down what Budget 2025 offers and how these initiatives can help you scale internationally. Let’s explore how to tap into these resources and set yourself up to go beyond borders.

1. RM40 Million for MATRADE’s International Promotion Fund

Did you know there’s RM40 million set aside specifically to help MSMEs promote their locally-made products overseas? This allocation to MATRADE is designed to open doors for you to expand into new markets, particularly Africa, Latin America, and the Middle East.

This initiative enables you to:

  • Attend International Trade Shows: Get support to showcase your products directly to international buyers, opening doors to new partnerships.
  • Navigate Market Entry:  Access resources to simplify the foreign expansion process.
  • Build Global Partnerships: Leverage the fund to connect with overseas distributors for long-term growth.

Smart Move: Focus on markets that align with your product strengths. If Southeast Asia is on your radar, explore trade shows in countries like Singapore, where demand for Malaysian products is already strong.

2. RM750 Million Skim Insentif Pemampanan Pengeksport (SIP2)

Access to capital is often a major hurdle when expanding internationally. That’s why the government’s RM750 million allocation under SIP2 is a game-changer. This initiative offers up to RM10 million per applicant at a 1.5% lower interest rate, making it easier to secure growth funds.

How you can leverage SIP2:

  • Boost Production Capacity: Ramp up output to meet new market demands without straining your cash flow.
  • Cover Export Costs: Manage logistics, warehousing, and compliance expenses more efficiently—typical pain points for growing businesses.
  • Invest in Compliance: Secure certifications (ISO, Halal, etc.) that are often required to enter regulated markets.

Tip: Efficient logistics are crucial as you scale. Optimizing your supply chain can reduce costs and delivery times, making your international operations more sustainable.

3. RM5 Million Business Exports Programme (BEP)

If you’re looking for more than just financial support, the BEP by SME Bank offers a holistic approach. This RM5 million initiative combines funding with developmental support, helping you become truly export-ready. 

What’s included:

  • Capacity Building: Support for upgrading your operations, whether it’s investing in new technology or refining production processes to meet global standards.
  • Mentorship and Guidance: SME Bank, together with MATRADE, provides advisory services to help you navigate market entry.
  • Compliance Assistance: Help you secure certifications and packaging improvements, ensuring your products resonate with international customers.

Takeaway: If you’re entering markets with strict regulatory requirements, this program can guide you through compliance, saving you time and potential headaches. Plus, having an experienced partner in your corner can make all the difference when navigating unfamiliar territory.

4. RM50 Million in Digital Matching Grants

Going digital is no longer optional—it’s where business happens. The government’s RM50 million allocation for Digital Matching Grants can help MSMEs cover up to 50% of digitalization costs, capped at RM5,000 per business. 

While this may seem modest, this grant also offers access to expert Digitalization Partners who can guide you through adopting effective digital strategies.

Ways to use this grant:

  • Upgrade Your E-commerce Capabilities: Optimize your online store for a smoother customer experience and better conversion rates.
  • Automate Your Logistics: Invest in digital tools to streamline order fulfillment and inventory management, ensuring faster delivery times and fewer errors.
  • Targeted Marketing: Use the grant to fund digital ad campaigns, helping you reach customers in new regions with precision.

Tip: Digitalizing your logistics processes can dramatically improve efficiency, reduce errors, and enhance customer satisfaction. Whether it’s automated tracking or real-time updates, having a tech-enabled logistics partner can support your digital growth strategy.

5. RM65 Million Allocation to Cradle Fund for Tech-Driven Exportable Products

If your business is at the forefront of innovation, Budget 2025 has exciting news for you. Cradle Fund’s RM65 million allocation is set to empower MSMEs to develop cutting-edge solutions. 

While this includes digital platforms, it also extends to tangible, tech-enabled products ready for export. The focus is on supporting businesses creating hardware solutions and tech-driven consumer goods with the potential to scale regionally and globally.

Think smart health devices, eco-friendly appliances, IoT hardware like robotics, or green tech products that cater to sustainability-conscious consumers.

Some of the ways this fund can support you:

  • Product Development Funding: Grants to turn tech innovations into market-ready products meeting global standards.
  • Market Entry Support: Provides resources to navigate commercialization and accelerate growth.
  • Strategic Alliances: Partnerships like the India-Malaysia Startup Alliance to boost international collaboration and expansion.

Tip: Your tech-enabled products might need special handling—whether it’s delicate electronics or high-value devices. Work with a logistics partner who understands these nuances to ensure smooth, hassle-free delivery as you expand internationally.

6. RM100 Million for the Green Technology Financing Scheme (GTFS)

While Budget 2025 doesn’t explicitly state that the GTFS is for international expansion, it equips MSMEs to meet international sustainability standards, which are increasingly emphasized in many markets. This allocation helps businesses adopt green practices, making their products more appealing in regions where eco-friendliness is a priority.

How GTFS can benefit your business:

  • Green Product Development: Access funding to develop or enhance eco-friendly products to align with global environmental standards.
  • Operational Efficiency: Invest in technologies that reduce waste and energy consumption.
  • Market Differentiation: Leverage sustainability to stand out in competitive, eco-conscious markets.

Takeaway: Embracing green technology not only positions your business for growth but also opens doors to markets prioritizing sustainability.

From Budget to Borderless

Budget 2025 offers a wealth of tools to help MSMEs expand into international markets. But it’s not just about funding—it’s about using these resources strategically to achieve sustainable growth. 

And when you’re ready to take that leap, having a reliable freight-forwarding partner can be a game-changer. With Ninja Van, many of the complexities of cross-border expansion are handled for you, from navigating customs regulations and handling delicate products to ensuring timely deliveries. This lets you focus on what truly matters—growing your business.

Embrace Budget 2025 and take your business to new heights—because the world is ready for what you have to offer.

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