KUALA LUMPUR, 11 November 2026 – The Malaysia Digital Economy Corporation (MDEC) has partnered with seven financing institutions to expand financing opportunities for Malaysian small and medium enterprises (SMEs) through the National E-Invoice Financing Exchange (NEFX), an AI-enabled digital financing platform designed to improve access to business funding.
The collaboration was formalised through the exchange of Memorandums of Understanding (MOUs) between MDEC and the seven financing partners. The initiative aims to improve credit assessments, increase lending transparency and help financial institutions make better-informed financing decisions.
NEFX is designed to address challenges faced by both SMEs and financial institutions. Many smaller businesses experience difficulties securing financing due to limited credit histories, insufficient collateral and incomplete financial records. At the same time, lenders need reliable information to assess creditworthiness, manage lending risks and evaluate repayment capacity.
Using Digital Transaction Data to Improve Financing Access
MDEC Chairman Ganesh Kumar Bangah said the platform aims to address the financing challenges faced by SMEs while supporting financial institutions in making commercially sound lending decisions.
“Access to financing is a two-sided equation: SMEs need capital to grow, while financial institutions must assess creditworthiness, manage risks and ensure that lending decisions are commercially sound,” he said.
He added that NEFX is not intended to lower lending standards. Instead, it will use trusted digital transaction data to improve transparency, support more informed lending decisions and create opportunities for financial institutions to expand their SME financing portfolios while managing risks effectively.
MDEC Acting CEO Azlan Sharom explained that NEFX is being developed as an open, secure and AI-enabled digital financing marketplace.
The platform will use authenticated e-Invoice data exchanged through the Peppol network, alongside other relevant business information shared with the consent of SMEs. AI-enabled analysis will provide financing institutions with greater visibility into business transactions.
Its planned pilot capabilities include data assessment, prevention of double financing, loan tracking and consent management. However, credit approvals, fund disbursements and collections will remain under the responsibility of the participating financing institutions.
Seven Financing Partners Support the Initiative
The seven pioneering financing partners involved in the NEFX initiative are CIMB Bank, CIMB Islamic Bank, AFFIN Bank, Alliance Bank, Funding Societies, CapBay and Bettr.
These institutions will contribute to shaping the platform’s data requirements, financing processes and integration ahead of its wider rollout. Their involvement will also support the proposed NEFX Founding Members Advisory Panel.
Azlan highlighted the importance of involving financing institutions from the early stages of development to ensure that the platform reflects their operational needs, lending criteria and risk management requirements.
The initiative is also expected to benefit SMEs experiencing cash flow pressures or lacking conventional credit histories by improving potential access to working capital for business operations and growth.
Strengthening Malaysia’s Digital Financing Ecosystem
The strategic partners appreciation session also recognised ecosystem partners MyDigital ID and CGC Digital, together with five Peppol-Ready Solution Providers (PRSPs): E Stream MSC, QNE Software Malaysia, Xero Software Malaysia, Radiant Globaltech and Precomp.
As Malaysia’s Peppol Authority, MDEC continues to advance interoperable e-Invoicing to improve business efficiency and encourage wider digital adoption. Through NEFX, digital transaction records could also provide SMEs with an additional opportunity to access financing.
Beyond NEFX, MDEC is also advancing the National AI Compute Exchange (NACX), which aims to broaden access to AI computing resources for Malaysian businesses.
According to Ganesh, NEFX focuses on improving access to financing, while NACX aims to provide businesses with the computing capabilities needed to develop and adopt AI solutions.
Together, both initiatives form part of MDEC’s broader strategy to help SMEs become more productive, competitive and AI-driven enterprises, supporting Malaysia’s ambition to become an AI Nation by 2030.
NEFX also contributes to the Malaysia Digital 2030 (MD2030) Action Plan by encouraging greater digitalisation and participation in the country’s digital economy.
For more information about MDEC and its initiatives, visit www.mdec.com.my.
