RM1 Million Fund and SME-Up 2026 to Empower Sabah's MSME Entrepreneurs

2 May 2026

TENOM: The Sabah government has introduced a RM1 million Special Entrepreneurship Development Fund and expanded the SME-Up 2026 programme to strengthen Micro, Small, and Medium Enterprises (MSME) entrepreneurs across the state.

Deputy Chief Minister III and Minister of Industrial Development, Entrepreneurship and Transport, Datuk Ewon Benedick, said the initiatives aim to help entrepreneurs boost production capacity, product quality, and market reach to higher levels.

"The Chief Minister has approved the Special Fund for Sabah MSME, starting with RM1 million as an initiative to assist entrepreneurs facing current challenges," he stated.

Ewon said this in his speech at the official launch of the 2026 Sabah PMKS Entrepreneur Carnival Tenom Zone at the Open Stage of Tenom Town Municipal Field here today.

He noted that the special fund has been expanded this year to include cooperatives as beneficiaries, alongside individual entrepreneurs and entrepreneurship associations.

"The scope of assistance includes startup capital financing, product quality improvements, marketing, machinery and equipment purchases, and human capital development," he added.

He explained that aid is subject to ministry-level committee approval, with a maximum of RM20,000 per application.

Additionally, the SME-Up 2026 programme will be extended to several districts across Sabah to increase local entrepreneur participation.

"This SME-Up outreach programme will tour districts including Kota Kinabalu, Tawau, Tenom, Keningau, Membakut, Putatan, Kota Marudu, and Kadamaian," he said.

According to him, the programme provides support in the form of machinery and equipment, retort machines, trademark registration, and halal certification to enhance product competitiveness.

"Up to 2025, 5,879 entrepreneurs have received machinery and equipment aid under this programme," he added.

Furthermore, his ministry is strengthening strategic collaborations with various parties, including local and international supermarkets, to expand markets for Sabah entrepreneurs' products.

These efforts include partnerships with local supermarkets and plans to penetrate Peninsular Malaysia via major supermarket chains, he said.

Ewon encouraged entrepreneurs with valid and active business licences to apply for assistance under both initiatives.

"I hope entrepreneurs, associations, and cooperatives will seize this opportunity to enhance their capacity and contribute to the state's economic growth," he said.

The three-day 2026 Sabah PMKS Entrepreneur Carnival Tenom Zone brings together dozens of local entrepreneurs and government agencies to bolster the grassroots entrepreneurship ecosystem.