The Edge
21 April 2026
Malaysia announces additional RM5b loan guarantee to support small medium enterprises
Anwar at Bank Negara (Photo by Shahril Basri/The Edge)
Audio Link: https://multimedia.theedgemalaysia.com/audios/.e0696afa-e095-4799-9855-badd30c66b79.mp3
KUALA LUMPUR (April 21): Prime Minister Datuk Seri Anwar Ibrahim has announced an additional RM5 billion allocation under the government’s loan guarantee scheme to support small and medium enterprises (SMEs) and other affected sectors amid ongoing economic challenges.
The additional financing guarantee under Syarikat Jaminan Pembiayaan Perniagaan Bhd (SJPP) will raise total guarantees to RM10 billion, Anwar said after holding a roundtable with financial institutions on Tuesday. Further details will be provided by Bank Negara Malaysia in due course, he added.
SJPP, wholly-owned by the Minister of Finance (Incorporated), manages and administers various government guarantee schemes to bridge financing gaps faced by SMEs.
Anwar, who is also the finance minister, said the enhanced loan guarantee facility will see guarantee coverage increased from 70% to 80% while the repayment tenure will be extended from seven to 10 years.
He said the move is part of targeted measures to cushion the impact of global uncertainties, including geopolitical tensions while ensuring continued economic growth.
The initiative will prioritise SMEs in logistics, agriculture and construction while also extending support to micro-entrepreneurs, including small traders, farmers and food operators.
Anwar also called for faster approval processes under existing schemes, including SJPP, to ensure timely assistance to businesses.
On Monday, Anwar announced that the government will support MSMEs affected by the global energy crisis with RM5 billion in financing guarantees under SJPP to help ease cost pressures. The government also announced e-invoicing for businesses with annual sales of RM1 million to RM5 million will be delayed by one year until Dec 31, 2027. In addition, the government will give temporary import duty and sales tax exemptions until the end of the year for Malaysian goods that are reimported due to disruptions from the Middle East conflict.
Meanwhile, Anwar said the government will announce further measures to enhance employment opportunities, particularly for graduates and job seekers, in the near future.
He, however, noted that Malaysia’s macroeconomic fundamentals remain strong with growth projected at 4% to 5% this year despite external headwinds, adding that the country’s performance compares favourably with many peers.
Anwar also highlighted improving trends in key sectors such as electrical and electronics (E&E), data centres and artificial intelligence (AI), which have attracted fresh investments in recent weeks.
(Web Source: https://theedgemalaysia.com/node/800650)