MDEC Partners Seven Financial Institutions to Expand SME Financing Through NEFX in Malaysia

The partnerships were formalised through memorandums of understanding (MOUs) signed on November 11, 2026. The initiative aims to help SMEs access working capital while enabling financial institutions to make better-informed lending decisions using digital transaction data.

Seven Financial Institutions Join NEFX

The seven financing partners participating in the initiative are:

• CIMB Bank
• CIMB Islamic Bank
• AFFIN Bank
• Alliance Bank
• Funding Societies
• CapBay
• Bettr

Through NEFX, MDEC aims to address financing challenges faced by SMEs, particularly businesses with limited credit histories, insufficient collateral or incomplete financial records.

NEFX to Use E-Invoice Data and AI Technology

According to MDEC, NEFX is being developed as an open and secure digital financing marketplace powered by artificial intelligence (AI).

The platform will use authenticated e-Invoice data exchanged through the Peppol network, along with other relevant business information shared with the consent of SMEs.

This information will help financing institutions understand business transactions, assess creditworthiness and evaluate repayment capacity.

The planned pilot capabilities include data assessment, prevention of double financing, loan tracking and consent management. However, credit approvals, loan disbursements and collections will remain the responsibility of the participating financial institutions.

MDEC Highlights Better Financing Access for SMEs

MDEC Chairman Ganesh Kumar Bangah said NEFX aims to address financing challenges for SMEs while helping financial institutions manage lending risks.

He explained that the platform is not intended to relax lending standards. Instead, it will use trusted digital transaction data to improve transparency and support better lending decisions.

MDEC Acting Chief Executive Officer Azlan Sharom said involving financial institutions from the beginning would help ensure that NEFX meets their operational requirements and lending standards.

He added that the platform aims to create a more efficient and scalable financing ecosystem for Malaysian businesses.

NEFX Supports Malaysia's Digital Economy Goals

MDEC said NEFX is part of its wider efforts to encourage digital adoption and improve business efficiency through interoperable e-Invoicing.

The initiative also supports the Malaysia Digital 2030 (MD2030) Action Plan by encouraging more businesses to participate in the digital economy.

Alongside NEFX, MDEC is advancing the National AI Compute Exchange (NACX), which aims to expand access to AI computing resources for Malaysian businesses.

Ganesh Kumar Bangah said both initiatives are designed to help SMEs improve productivity, strengthen competitiveness and adopt AI technologies.

About MDEC

The Malaysia Digital Economy Corporation (MDEC) is an agency under Malaysia's Ministry of Digital. It works to accelerate the country's digital economy by supporting businesses, encouraging technology adoption and developing the digital ecosystem.

Through initiatives such as NEFX and NACX, MDEC aims to help Malaysian businesses improve their digital capabilities and compete in the global digital economy.

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