KUALA LUMPUR — The Entrepreneur Development and Cooperatives Ministry today outlined a reform agenda for Malaysia’s micro, small and medium enterprises (MSMEs) and cooperatives, announcing immediate flood relief and expanded financing schemes following a Cabinet reshuffle.
Newly appointed minister Steven Sim Chee Keong said the ministry will be guided by a four-pronged approach focusing on productivity, bureaucracy reduction, access to capital and market expansion, as businesses face increasingly challenging global and domestic conditions.
“This is not a change of government, but a mid-term reshuffle within the same administration, and there should be no disruption to the ministry’s operations during this transition,” he said.
As an immediate step, a six-month interest-free moratorium will be granted to MSMEs and cooperatives affected by floods nationwide. The relief covers financing from seven agencies under the ministry, including TEKUN Nasional, Bank Rakyat, SME Bank and Amanah Ikhtiar Malaysia.
The minister also announced expanded financing across communities. Funding for Bumiputera entrepreneurs under TEKUN will rise from RM300 million this year to RM500 million in 2026, while allocations for Indian entrepreneurs under the Indian Community Entrepreneur Financing Scheme will increase from RM30 million to RM50 million. A new RM50 million financing scheme for Chinese MSMEs is scheduled to be launched in January next year.
Senior ministry officials have also been directed to review existing procedures and costs affecting MSMEs and cooperatives, with a view to reducing processing times and creating a more business-friendly environment.
“KUSKOP has been given a clear mandate to ensure people-centred economic growth through the empowerment of MSMEs and cooperatives,” Sim said, adding that all future policies, programmes and legislation will be aligned with this focus.
He said he would work closely with Deputy Minister Datuk Mohamad Alamin to strengthen the sector’s competitiveness and resilience.
Sim also expressed appreciation to former minister Datuk Ewon Benedick and former deputy minister Datuk Seri Ramanan Ramakrishnan for their leadership and contributions.— December 18, 2025