DIGITAL PENANG, FINHERO PARTNER TO EXPAND FINANCING ACCESS FOR MSMES

GEORGE TOWN, May 7 (Bernama) -- Digital Penang Sdn Bhd and Sisters Inspire Sdn Bhd's fintech solutions provider unit, FinHero, have signed a memorandum of understanding (MoU) to expand access to financing for Penang’s micro, small and medium-sized enterprises (MSMEs).

In a statement today, Digital Penang said the collaboration supports its mission to accelerate Penang’s digital economy by introducing digital-first, alternative financing options and equipping business owners with the skills to navigate them confidently.

The partnership also aligns with the Penang2030 vision of ‘A Family-Focused Green and Smart State’, reflecting a shared goal of enabling inclusive digital growth.

“By bridging traditional financial gaps through innovation and education, the initiative aims to unlock opportunities for businesses often overlooked by conventional financing systems. At the heart of this collaboration is a commitment to community impact,” the statement said.

Under the MoU, Digital Penang and FinHero will launch programmes to help local MSMEs understand and access a new generation of financial tools. These include artificial intelligence (AI)-powered automation, alternative credit scoring, and revenue-sharing financial models — all designed to support businesses with limited credit histories but high growth potential.

Penang Infrastructure, Transport, and Digital Committee chairman Zairil Khir Johari, who also serves as Digital Penang's vice chairman, said the partnership underscores a shared commitment to making financial tools and digital education accessible across all levels of the business community.

“Inclusive innovation is the bedrock of a resilient, future-ready economy,” he said.

As part of the collaboration, FinHero will contribute its expertise by offering business-friendly financing solutions such as invoice-based funding and flexible repayment schemes. Its proprietary solution, FinXtract, will further support digital adoption by automating data extraction and simplifying repetitive tasks, freeing up time and resources for entrepreneurs.

To promote fintech awareness, Digital Penang said it will organise monthly workshops and seminars to introduce practical fintech applications and promote smarter financial strategies.

Additionally, it will connect FinHero with its network of MSMEs and business associations to ensure the partnership’s benefits reach those who need them most.

The collaboration, it noted, aligns with Digital Penang’s broader mission to elevate Penang’s innovation economy and foster a digitally engaged society.

“This partnership expands the financial landscape for MSMEs by offering practical tools and accessible support tailored to their needs.

“With improved access to digital solutions and flexible financial options, business owners will be equipped to grow sustainably, make informed decisions and strengthen their resilience in a dynamic economic environment,” it added.

Digital Penang noted that inclusive finance is becoming an integral feature of Penang’s evolving digital economy, supporting long-term participation and progress across the business community.

The first series of community workshops is set to launch in the second quarter of 2025, bringing fintech insights and financing pathways directly to Penang’s small business owners.

-- BERNAMA