MICRO, small and medium enterprises (MSMEs) contributed RM652.4 billion to the country's gross domestic product in 2024.
SME Corporation Malaysia said the amount is targeted to reach RM1 trillion by 2030, underscoring the impact of MSMEs to the nation's economy.
According to GXBank, Malaysia's first fully digital business banking platform, traditional banking processes in Malaysia often prove disadvantageous to small businesses, who face long approval times, rigid procedures and gaps in credit records.
To remedy this, GXBank, is pushing for a fairer and more accessible financial system for micro, small and medium enterprises (MSMEs) through its newly launched GX Business Banking facility and Jaguh Niaga programme.
Entrepreneur Won Min Jun, owner of Chicken by Won, explained that he had issues with previous banks that affected his business' efficiency.
"Before switching, I dealt with slow apps, occasional shutdowns, lag issues, and maintenance downtime that affected our operations," he said.
According to GXBank chief executive officer Kaushik Chowdhury, MSMEs are constrained by outdated banking processes that do not reflect modern business realities.
"Business owners lose valuable working hours dealing with physical meetings and paperwork. Critically, most traditional banking systems are not built for them," he said,
He added that small businesses often face delayed loan approvals and challenges arising from thin or incomplete credit histories.
GXBank's goal is to provide inclusive, fair, flexible, and digital-first financial solutions that drive cash flow and resilience.
DAILY INTEREST, FINANCING ACCESS
With the GX Biz Account and GX Biz FlexiLoan, MSMEs can open an account, apply for financing and access a credit line within minutes.
A key feature is the Daily Rest Interest, which incentivises customers to pay their balances earlier.
"Interest is calculated on the outstanding loan balance at the end of each day, any repayment they make reduces the interest charged from the very next day," explained Chowdhury.
GXBank is also committed to security and transparency by offering products that are transparent, fair and genuinely useful for MSMEs. With Bank Negara Malaysia's licensing and internal AI tools, they are able to ensure a safe, well-governed and proactively protected banking environment.
REAL LIFE TESTIMONIAL
For Won Min Jun, who has been using GXBank for about a year, the shift to GXBank has significantly improved his business's operational efficiency.
"It's seamless, smooth and easy to operate, and the OS is clean, efficient and helps me manage my business with minimal hassle," he explained.
Won also utilised GX Biz FlexiLoan to stabilise his business during slow periods.
"It really helped us during downtimes, especially in covering rental and overhead costs when cash flow was tight," he added.
GXBank's Jaguh Niaga initiative aims to support 10,000 MSMEs through inclusive financing via GX Business Banking and access to digital tools, including partnerships with du-it, Swipey, PulseLink and TeXnovasi programme startups.
"Going digital is no longer optional. It is essential for long-term resilience and growth," said Chowdhury.
Nearly half of GXBank's customers come from underserved segments, and Jaguh Niaga continues this mission by enabling MSMEs to save time and money by focusing on their business.
*GXBank is licensed by BNM and is a Perbadanan Insurans Deposit Malaysia member. All deposits are protected by Perbadanan Insurans Deposit Malaysia up to RM250,000 for each depositor. GXBank is currently offering a daily savings interest rate of 3.0 per cent and 0.0 per cent per annum interest on first-month loan repayments, from now until Feb 28, 2026.
Source: https://www.nst.com.my/news/nation/2025/12/1346167/digital-banks-help-msmes-grow-fast-approvals-easy-fund-access