PUTRAJAYA — Micro, small and medium enterprises (MSMEs) will benefit from a RM5 billion guarantee facility aimed at raising their financing coverage to sustain operations amid the global energy crisis triggered by the Iran conflict, the government announced today.
Prime Minister Datuk Seri Anwar Ibrahim said the facility, under Syarikat Jaminan Pembiayaan Perniagaan (SJPP), raises financing coverage from 70 per cent previously to 80 per cent.
The guarantee tenure has also been extended to up to 10 years from seven years.
SJPP will work with banks to facilitate loan restructuring and rescheduling, as well as targeted repayment assistance, Anwar added.
The Prime Minister said this is among the key measures by the government to help MSMEs sustain operations amid pressure from higher energy and operating costs as well as disrupted supply chains caused by the US and Israel’s conflict with Iran which began late February.
Sectors that stand to benefit include construction, agriculture and agri-food, logistics, transportation, and tourism, Anwar said.
“In the face of intensifying global pressures, the Madani government is acting swiftly, guided by direct feedback from industry players, to ensure that every measure reaches those who need it most,” he said in a statement today.
Another measure is an additional 12-month transition period for the implementation of e-invoicing Phase 4 until Dec 31, 2027, for businesses with annual sales between RM1 million and RM5 million, including allowing consolidated e-invoices to be issued without penalties during the period.
The government is also considering, on an interim basis, exemptions on import duty and sales tax for the re-importation of Malaysian-made goods that were unable to complete the export process due to conflict-related disruptions, until Dec 31 this year.
Anwar said the government will continue to act proactively to ensure the business ecosystem remains resilient and adaptable to change amid prolonged global pressures.
“The government will continue to strengthen collaboration with financial institutions, industry players and entrepreneurs to ensure that the measures implemented help sustain business operations and protect jobs.
“This is not a temporary situation; we must be prepared for gradual and prolonged changes.”
According to Bernama, Anwar engaged with Bumiputera MSMEs last week, and is now expanding the government’s outreach the Chinese and Indian business communities. – April 20, 2026