Borong to invest US$17.4mil to boost Sarawak’s MSMEs and digital economy
By Digital News Asia October 17, 2024
- Strengthen footprint locally, grow overseas via cross-border digitalization
- Target 60k MSMEs providing digital tools to bring biz from offline to online
Micro and Small Medium Enterprises (MSMEs) in Sarawak, many of which are under the radar of the state, just got a huge boost thanks to a collaboration between leading startup, Macro Tech Ventures Sdn Bhd, which operates in the market under the Borong brand (formerly Dropee), and Sarawak Digital Economy Corporation (SDEC), along with five other companies at the 7th International Digital Economy Conference Sarawak today.
In a MOU signing Borong committed to invest US$17.4 million (RM75 million) via Digital Niaga, a credit financing scheme in collaboration with development banks BSN, Bank Rakyat, and Agrobank, to enable digitalization across Sarawak’s MSMEs, boosting local businesses growth.
Aizat Rahim, co-founder of Borong said the partnership between Borong and SDEC is a positive step to promote entrepreneurship and developing enterprises towards the digital era to boost Sarawak’s economic growth. “We are committed to invest in Sarawak’s MSMEs to strengthen their footprint locally and grow internationally via cross-border digitalization.”
SDEC CEO Ir. Ts. Sudarnoto Osman said, "The MOUs (with Borong and the other five companies) represent a critical step in Sarawak's journey toward becoming a digital economy powerhouse. These collaborations are about more than just technology—it's about empowering the community through digitalisation. By integrating digital solutions, we are equipping our local businesses with the knowledge, support, and funding to thrive."
Borong targets to transform over 60,000 MSMEs through providing digital tools and resources that bring their businesses from offline to online. With an estimated average monthly purchase of US$92.8 (RM400) each, with Borong providing RM1,200 of credit financing for each MSME for three months, the RM75 million financing, “is just the beginning for us to catalyse the growth of these MSMEs in Sarawak,” said Lennise Ng, co-founder and CEO of Borong.
[RM1 = US$0.232]
“We are quite positive on the results when we have a stronger baseline to rope in other partners to invest more in MSMEs, not just in Sarawak but throughout Malaysia,” she adds.
Borong will be assessing MSMEs digital readiness and conduct awareness, digital training, and onboarding activities together with SDEC. The goal is to prepare these local businesses to utilize Borong’s eCommerce and marketplace platform to increase their global reach and competitiveness. Borong earns a small 2.5% cut from transactions on its platform.
Once onboarded to the Borong ecosystem, these MSMEs will gain easy access to affordable financing that could go as low as 2.5% per annum. Up to date, Borong and its banking partners have allocated over RM300 million SME financing ready to be deployed and utilized.