Business Today
18 October 2024
RM40 Billion In Business Financing To Boost MSMEs And Bumiputera Entrepreneurs
In Budget 2025, the government announced RM40 billion in financing and business guarantees to empower micro, small, and medium enterprises (MSMEs) and support economic growth. Recognising that 90% of the economy relies on MSMEs, the focus will be on key areas such as food security, energy transition, and digitalisation.
Institutions like Bank Pembangunan and Bank Simpanan Nasional (BSN) will play crucial roles in supporting local entrepreneurs at various stages of their business journey. One notable example is Ramly Burger, which benefited from financing to build its factory through the Industry Digitalisation Transformation Scheme.
A total of RM3.2 billion in microloans will be available through TEKUN and BSN, aimed at small traders, including those from the OKU, Chinese, and Bumiputera communities. Additionally, RM6.4 billion will be provided by Bank Pembangunan Malaysia to finance sectors such as RM40 Billion In Business Financing To Boost MSMEs And Bumiputera Entrepreneurs
infrastructure development, tourism, logistics, and renewable energy.
To further support Bumiputera entrepreneurs, RM20 billion in financing guarantees will be available through SJPP, with RM5 billion reserved specifically for Bumiputera SMEs. Bank Negara Malaysia (BNM) will provide RM3.8 billion for SMEs, encouraging their transition to digital and automated practices while continuing to aid the agri-food sector and sustainable initiatives.
Women and youth entrepreneurs will also receive RM650 million in targeted support, while the Indian community will benefit from RM130 million dedicated to social and business financing programs. In addition, RM100 million has been set aside for cooperatives to ensure their business activities receive the necessary capital.
Further incentives include increasing the loan limit under the Micro Financing Scheme from RM50,000 to RM100,000 starting January 2025, along with full stamp duty exemptions for MSME loan agreements via Initial Exchange Offering (IEO) platforms.
(Web Source: https://www.businesstoday.com.my/2024/10/18/rm40-billion-in-business-financing-to-boost-msmes-and-bumiputera-entrepreneurs/)