KUALA LUMPUR: The Malaysia Digital Economy Corp (MDEC) has partnered with seven financial institutions to widen financing opportunities for small and medium enterprises (SMEs) through the National E-Invoice Financing Exchange (NEFX).
The collaboration involves the exchange of memorandums of understanding with CIMB Group Holdings Bhd, CIMB Islamic Bank Bhd, Affin Bank Bhd, Alliance Bank Malaysia Bhd, Funding Societies Malaysia, CapBay and Bettr.
The AI-enabled platform aims to improve credit assessments, enhance lending transparency and provide SMEs with better access to financing, particularly those with limited credit histories, insufficient collateral or financial records.
MDEC chairman Ganesh Kumar Bangah said NEFX seeks to address financing challenges faced by SMEs while enabling financial institutions to make more informed lending decisions.
“NEFX is not about relaxing lending standards. Instead, by leveraging trusted digital transaction data, it aims to provide greater transparency, support better-informed lending decisions and create opportunities for financial institutions to expand their SME financing portfolios while managing risks more effectively,” he said in a statement.
NEFX is being developed as an open, secure and AI-enabled digital financing marketplace.
The platform will leverage authenticated e-invoice data exchanged through the Peppol network, alongside other relevant business information shared with SMEs’ consent.
MDEC chief executive officer Azlan Sharom said the platform’s planned pilot capabilities include data assessment, prevention of double financing, loan tracking and consent management.
However, credit approvals, disbursements and collections will remain the responsibility of the respective financing institutions.
For SMEs facing cash flow pressures or lacking conventional credit histories, NEFX is expected to improve access to working capital to sustain operations and support business growth.
Azlan said involving financing institutions from the outset would ensure the platform meets their operational and lending
The seven pioneering partners will help shape NEFX’s data requirements, financing processes and integration ahead of a wider rollout, including through the proposed NEFX founding members advisory panel.
NEFX also supports the Malaysia Digital 2030 Action Plan by encouraging greater digitalisation and participation in the digital economy.