Budget 2024 Empowers MSMEs

29 November 2023

By Wartawan Nabalu News

KUALA LUMPUR: Budget 2024 continues to support micro, small, and medium enterprises (MSMEs). The total value of loans and financing guarantees for the benefit of MSME entrepreneurs amounts to up to RM44 billion.

Dato' Seri Anwar bin Ibrahim Prime Minister and Minister of Finance in the Supply Bill 2024 (Budget 2024) speech at Dewan Negara today said Micro entrepreneurs and small traders are provided with small loan facilities with a total fund of RM2.4 billion under agencies such as BNM, BSN, and TEKUN.

To date, Jaminan Pembiayaan Perniagaan Berhad (SJPP) has guaranteed over 100,000 SMEs (75% non-Bumiputera and 25% Bumiputera) with a value of over RM75 billion. In 2024, SJPP will guarantee up to 80% of SME loans with a guarantee fund availability of up to RM20 billion.

Since its establishment, the Malaysian Trust Fund (AIM) has successfully assisted 1 million borrowers, especially single mothers in need.

AIM has shown excellent performance with the lowest non-performing loan (NPL) rate of 0.26% last year. The government provides a financing allocation of RM100 million to support AIM's function in eradicating poverty, the Finance Minister said.

“The government will continue to enhance competitiveness through business model transformation and digitization. Among them, RM100 million is allocated as digitalization grants of up to RM5,000 for the benefit of over 20,000 MSME entrepreneurs. This grant can be used to upgrade digital sales systems, inventory management, and accounting,” he stated.

“The TVET education allocation for 2024 amounts to RM6.8 billion. The First MADANI Budget has initiated efforts to revamp the country's TVET education through collaborations with GLC and private companies.

As of October 5, 17 GLCs and 44 private companies have been involved in the signing of 61 MoUs, covering cooperation in curriculum development and contributions of equipment and expertise.”

Human Resources Development Berhad (HRD Corp) will utilize a fund of RM1.6 billion to provide 1.7 million training offers. HRD Corp will also reallocate special funds using 15% of the levy collection to implement the MADANI Training Program, which includes retraining and skills enhancement for MSME entrepreneurs, ex-convicts, persons with disabilities (OKU), and retirees.