LATEST NEWS   Haze: Schools under PPD of Hulu Langat, Petaling Perdana, Kuala Langat, Sepang, Kuantan and Rompin also to close tomorrow - Fadhlina | Haze: Schools in Johor, Melaka, Negeri Sembilan and Putrajaya to close tomorrow - Fadhlina | Haze: School closures to depend on SOPs and advice from MetMalaysia and Health Ministry - Fadhlina | Transboundary haze issue to be discussed at ministerial level ahead of next month's ASEAN Summit - Mohamad Hasan | Malaysians advised to postpone travel to Saudi Arabia following Riyadh bombing – Mohamad Hasan | 
• 10/10/2026 04:13 PM

MSME Financing Rises To Record RM57 Billion

KUALA LUMPUR, Oct 10 (Bernama) -- Financing facilities and guarantees for micro, small and medium enterprises (MSMEs) and mid-tier companies have increased to RM57 billion under Budget 2027, compared with RM50 billion last year, in line with the government’s efforts to make 2027 Malaysia’s Year of MSMEs.

Entrepreneur Development and Cooperatives Minister Steven Sim said the budget focused on three key areas, namely facilitating access to financing, reducing business costs and expanding market opportunities.

“To ease business costs, the income tax rate for MSMEs has been reduced by up to two percentage points, benefiting about 300,000 MSMEs with tax savings of up to RM6,000 a year,” he said in a statement.

Ad Banner

Meanwhile, the government has provided RM1 billion in export financing through Bank Pembangunan Malaysia Berhad (BPMB) and RM60 million through the Malaysia External Trade Development Corporation (MATRADE) to help local companies penetrate international markets.

Sim also welcomed the exemption for MSMEs with annual sales below RM50 million from the increase in the minimum wage from RM1,700 to RM2,000 a month, effective June 2027. He also supported the proposed tabling of an E-Commerce Bill to ensure fair competition for local traders.

He said the Ministry of Entrepreneur Development and Cooperatives (KUSKOP) had received an allocation of RM1.028 billion for 2027 to strengthen entrepreneurial and cooperative development through the ministry’s ABCD framework, namely productivity shift, simplified bureaucracy, access to capital and market access.

Ad Banner
Ad Banner
Ad Banner

Under the productivity enhancement agenda, the government has allocated RM30 million to help 4,000 MSMEs adopt artificial intelligence (AI) and automation, in addition to RM25 billion in domestic investments by government-linked investment companies (GLICs) to drive high-value industries.

To simplify bureaucracy, the government has approved direct appointments for procurement of up to RM200,000 and quotations of up to RM3 million for maintenance works. It will also offer a 50 per cent rental discount throughout 2027 to more than 10,000 traders operating at Kuala Lumpur City Hall (DBKL) premises.

In terms of access to capital, RM6.6 billion has been allocated for microfinancing, while RM32 billion in financing guarantees through Syarikat Jaminan Pembiayaan Perniagaan Berhad (SJPP) and Credit Guarantee Corporation Malaysia Berhad (CGC), together with an additional RM5 billion in financing from Bank Negara Malaysia (BNM), are intended to assist businesses, including small and medium enterprises (SMEs) affected by the conflict in West Asia.

To expand market access, the government has provided RM7.5 billion in procurement opportunities for Bumiputera contractors in Grades G1 to G4, nearly RM700 million for small-scale projects by local authorities, and matching grants of up to RM5,000 to help MSMEs obtain halal certification for the first time.

Sim said the whole-of-government approach would be strengthened to ensure that entrepreneurs could access suitable facilities through cooperation among ministries and agencies.

-- BERNAMA

 

 

More News

Categories

Tags