KUALA LUMPUR – Malaysia has moved swiftly to shield its small businesses from mounting global shocks, with a RM5 billion relief facility unveiled to help firms weather disruptions linked to the ongoing West Asia conflict.
Entrepreneur Development and Cooperatives Minister Steven Sim Chee Keong welcomed the move by Bank Negara Malaysia, describing it as timely support for micro, small and medium enterprises (MSMEs) grappling with supply chain pressures and cash flow constraints.
He said in a statement that the SME Stabilisation Relief Facility (SME SRF) would provide much-needed breathing space for businesses affected by the global supply crisis triggered by geopolitical tensions.
The announcement followed a meeting earlier today between Sim and Bank Negara governor Datuk Seri Abdul Rasheed Ghaffour at the central bank’s headquarters, where both parties discussed the strategic role of financial institutions in strengthening the MSME ecosystem amid economic uncertainty.
During the discussion, Sim stressed the importance of widening access to financing, particularly for new entrepreneurs and first-time borrowers.
“We need to ensure that access to credit is more inclusive, especially for new entrepreneurs and those applying for financing for the first time.”
He also pointed to the potential of blended financing models to support business expansion.
“Hybrid or blended financing approaches, which combine the strengths of the banking sector and the capital market, have strong potential to support the next phase of MSME growth,” he said.
Sim added that supporting MSMEs requires collective effort across the entire ecosystem.
“In facing current challenges, support for MSMEs requires an all-hands-on-deck approach involving the government, financial institutions, the banking sector and the wider entrepreneurial ecosystem,” he said, aligning this with the ministry’s mission to strengthen Malaysian businesses.
He further said the ministry remains focused on long-term resilience as well as growth opportunities for local enterprises.
“We are committed not only to ensuring Malaysian businesses remain resilient amid global economic headwinds, but also to helping them expand, improve productivity and move up the value chain,” he said.
As of March 2026, total financing to MSMEs by banking institutions and development financial institutions had reached RM443.8 billion, accounting for nearly 51 per cent of total business loans — a strong base that authorities aim to further strengthen.
Meanwhile, Bank Negara said in a statement that the RM5 billion SME SRF is aimed at assisting SMEs, including microenterprises, affected by the prolonged West Asia conflict, which has disrupted operations and created cash flow challenges for businesses in certain sectors.
The central bank said eligible SMEs can obtain financing of up to RM750,000 for a tenure of up to five years, at a maximum rate of 3.75 per cent per annum, inclusive of guarantee fees.
The facility will be backed by guarantees of up to 80 per cent from Credit Guarantee Corporation Malaysia, particularly benefiting businesses without sufficient collateral.
Applications will open from May 15, 2026, until December 31, 2026, or until the funds are fully utilised. SMEs can apply through participating financial institutions, including commercial banks, Islamic banks, and development financial institutions regulated by Bank Negara.
The central bank also urged businesses anticipating or already facing financial difficulties to engage early with their lenders.
“Proactive engagement allows financial institutions to work with borrowers to identify suitable solutions, including repayment flexibility, restructuring of financing facilities or other tailored support measures,” it said in a statement.
In addition, SMEs can seek financial advisory services and debt management assistance from the Debt Management Programme (DMP) and the Small Debt Resolution Scheme (SDRS). – April 28, 2026