KUALA LUMPUR, Nov. 11 -- The government wants to improve the quality of financing for small and medium enterprises (SMEs) to strengthen local firms' global competitiveness and enable workers to earn higher wages and hold better-quality jobs.

Although Malaysia had recorded encouraging economic growth, Economy Minister Akmal Nasrullah Mohd Nasir said today that structural challenges still needed to be addressed so that SMEs could expand and improve productivity.

He said the main challenge was no longer simply ensuring firms had access to credit, but making sure the financing met their investment and expansion needs.

"The real issue is the quality of funding being channelled. It is not just about how firms obtain credit, but how we ensure...