SMEs unsure about govt schemes without clear returns, says Carsome CEO

 Eric Cheng says complicated processes also discourage SMEs from joining upskilling programmes.

Carsome co-founder and group CEO Eric Cheng said SMEs needed to better understand how government training and digitalisation programmes would increase their business’s revenue or improve productivity.

KUALA LUMPUR:

Small and medium-sized enterprises (SMEs) may be reluctant to participate in government training and digitalisation programmes as they are uncertain if these will deliver measurable commercial benefits, says Carsome co-founder and group CEO Eric Cheng.

Cheng said Malaysia has a substantial pool of government funding to help businesses train workers, develop talent and adopt digital technologies.

However, he said the availability of funding did not necessarily translate into strong demand from SMEs, which needed to understand whether such investments would increase revenue, improve productivity or help them capture greater value.

“The supply (of funding) is strong, but the demand from SMEs requires a bit more work,” he said during a panel discussion on Malaysia’s sluggish wage growth at the Sasana Symposium 2026 here.

Cheng said established companies, such as Carsome, were better positioned to assess whether training and digitalisation programmes had resulted in higher revenue or improved productivity.

However, smaller firms may lack the knowledge, resources and systems needed to evaluate such outcomes.

Cheng also said complicated application and disbursement processes could discourage SMEs from participating in these programmes.

He said some schemes required businesses to spend on government training and digitalisation programmes first before submitting reimbursement claims, adding that the overall process involved extensive paperwork.

Cheng said government support should align more closely with the practical needs of SMEs and include clearer methods to measure its impact.

The annual Sasana Symposium, hosted by Bank Negara Malaysia, brings together experts to discuss global and domestic economic shifts.

The panel discussed Malaysia’s slow wage growth and measures needed to help businesses improve productivity while paying workers higher and more sustainable wages.

Other panellists included Bank Negara assistant governor Fraziali Ismail and Manaf Gardner Associates chairman Nora Manaf. - FMT