FinTechOn｜President of the Malaysia FinTech Association: How SMEs Can Build Smart Supply Chains, Upgrade Logistics, and Achieve High Capital Efficiency

Taiwan FinTechON & AFA 2025 Forum (9/2), Malaysia FinTech Association President Anil Singh Gill delivered a speech, analyzing the key role of FinTech and digital finance in building a smart Supply Chain. He pointed out that the Supply Chain is shifting from "efficiency-oriented" to "intelligence-oriented," and that digitalization and financial innovation will become the dual engines driving this transformation.

What is a "Smart Supply Chain"? It's not just an upgrade in logistics.

Gill explains that the so-called smart Supply Chain refers to a type of supply network that is based on digital technology and possesses adaptive capabilities. This network relies on multi-party collaboration, including data platforms, innovative service providers, actively participating customers, flexible regulatory frameworks, and most importantly, the "interoperability" between systems.

Only when information can flow freely between systems can the potential of fintech be truly unleashed, creating a dual dividend of capital and efficiency for businesses.

FinTech Unlocks Capital Flow: The Biggest Beneficiaries are Small and Medium Enterprises

In the speech, Gill particularly emphasized how FinTech enables small and medium-sized enterprises to break through traditional financing bottlenecks. Although old-fashioned tools such as "Supply Chain Deep Financing" and "Order Financing" still have their market, new solutions like dynamic discounting and multi-tier supply chain finance (Deep-Tier Supply Chain Finance) are rapidly expanding the accessibility of funds.

Such as E-tier financing, which allows funds to flow to the second and third tier suppliers in the Supply Chain, further expanding the overall flexibility and stability of the supply network. Anil Singh Gill stated: "Fintech is not just about helping big companies find money; the real value is in solving the fundamental funding pain points of small and medium-sized enterprises."

Digital Evolution Roadmap for SMEs

Gill proposed a three-phase digital maturity model for small and medium-sized enterprises, emphasizing that digital transformation should be gradual.

1. Basic Digitalization: Establish data systems and basic process automation. 2. Operational Integration: Integrate financial, procurement, and sales information through an ERP system. 3. Intelligent Optimization: Further apply AI, blockchain, and big data for risk control and forecasting.

He warned that companies that do not complete these three phases will find it difficult to establish a foothold in the smart Supply Chain and will miss out on capital and market opportunities.

Technology as the Backbone: AI, IoT, and Blockchain Leading the Transformation

Gill pointed out that multiple key technologies are driving the revolution in Supply Chain finance:

Artificial Intelligence (AI): Provides intelligent risk assessment and forecasting capabilities

Big Data Analysis: Integrating operational and financial data to enhance decision-making quality

Blockchain: Enhancing Supply Chain Transparency and Reducing Fraud Risk

API and Platform Integration: Breaking Down Data Silos to Strengthen Ecosystem Collaboration

Internet of Things (IoT): Achieving real-time tracking of goods flow to enhance financing confidence

These technologies are interconnected, creating a positive cycle of "data - trust - capital", which generates competitive advantages for small and medium-sized enterprises.

How do regulations affect the implementation of smart Supply Chains?

In addition to technology and industry applications, Gill also emphasizes the importance of policy aspects. He pointed out:

Data security and privacy protection must be prioritized.

The government should promote data format standardization.

The cultivation of digital talent is urgent.

He emphasized that regulations can be a catalyst for innovation, but they can also be an invisible barrier. The key is to find a balance between "protection and innovation."

Lessons Learned: The Implications of Greensill Capital's Collapse

Gill specifically mentioned the risks of Supply Chain finance. The UK Supply Chain finance company Greensill Capital fell into financial crisis in 2021 due to a break in its funding chain and the suspension of insurance coverage, ultimately filing for bankruptcy protection. Greensill's business model heavily relied on financing future accounts receivable, and the uncertainty of future transactions posed significant risks. Its collapse not only caused tens of thousands of people worldwide to face unemployment but also resulted in billions of dollars in losses for financial institutions that invested in the company's assets, including well-known banks like Credit Suisse, and triggered investigations and reviews by multinational regulatory bodies. The incident highlighted the significant challenges and reform needs in transparency and risk management within the Supply Chain finance industry.

Even financial tools supported by technology are not a cure-all. Transparency, risk management, and integrity remain irreplaceable fundamental principles.

The three major strategic directions of the future Supply Chain

Finally, Gill summarized with three key points to guide small and medium-sized enterprises in the digital Supply Chain era:

Embrace digital transformation, enhance operational efficiency and capital control.

Make good use of financial technology to unlock new channels for Supply Chain capital.

Strengthen risk control awareness to avoid repeating the mistakes of financial disasters.

He emphasized that the future of the smart Supply Chain is not just a technological revolution, but a structural transformation of "trust reconstruction" and "value redistribution."

This article FinTechOn｜President of the Malaysia FinTech Association: How SMEs Can Build Smart Supply Chains, Upgrade Logistics, and Achieve High Capital Efficiency first appeared in Chain News ABMedia.