Malaysia allocates RM40 billion for MSMEs, prioritising women and youth entrepreneurs
24 February 2023
By Wartawan Nabalu News
KUALA LUMPUR: The Malaysian government has allocated RM40 billion in loan facilities and financing guarantees for micro, small, and medium-sized enterprises (MSMEs).
Prime Minister Datuk Seri Anwar Ibrahim announced that various agencies including Bank Negara Malaysia (BNM), Bank Simpanan Nasional (BSN), and TEKUN have set aside available funds amounting to RM1.7 billion to support MSMEs.
A total of RM300 million has been allocated to support micro-businesses run by women and youth entrepreneurs. BSN is providing more than RM1 billion with a focus on micro SMEs and hawkers, while TEKUN has allocated RM330 million including RM10 million to help young people from low-income families start a delivery service using motorcycles.
Furthermore, the government has agreed to bear the cost of driving tests for B2 motorcycle licenses, taxi licenses, buses, and e-hailing.
Anwar, who also serves as the Minister of Finance, added that BNM has set aside nearly RM10 billion in loan funds to support SMEs and alleviate the financial burden of MSMEs.
The SME Financing Guarantee Company (SJPP) is also ready to guarantee up to RM20 billion in MSME loans. Sectors such as high technology, agriculture, and manufacturing are given government guarantees of up to 90 per cent.
Guarantees are also extended to financing by non-banking financial institutions such as credit leasing companies and cooperatives to provide special benefits to small hawkers.