The Malaysian Reserve
26 June 2025
SME Bank rolls out RM211m strategic initiatives to boost MADANI economy
FINANCE Minister II Datuk Seri Amir Hamzah Azizan has reaffirmed the government’s commitment to empowering micro, small and medium enterprises (MSMEs), noting that the sector contributed RM613 billion to GDP in 2023 — equivalent to 39.1% of total output — and is projected to reach 41% this year under the 12th Malaysia Plan.
Speaking at the launch of SME Bank’s Budget 2025 initiatives today, he said the government has allocated RM44.9 billion to support MSMEs through loans, guarantees, stamp duty exemptions, and matching grants focused on digitalisation and sustainability.
“SME Bank has disbursed RM48 billion to nearly 25,000 entrepreneurs since its inception in 2005. For FY2024 alone, the bank recorded RM3.6 billion in approved financing, marking a 35.1% increase from the previous year,” he said at the launch of SME Bank’s Budget 2025 Initiative.
Amir added that over 83,000 MSMEs have benefited from SME Bank’s structured training and outreach programmes through its Centre for Entrepreneur Development and Research (CEDAR), calling it “a centre of excellence that empowers entrepreneurs in support of national economic growth.”
He also stressed the importance of aligning MSME financing with national priorities such as the National Energy Transition Roadmap (NETR) and New Industrial Master Plan 2030 (NIMP 2030), with targeted support for technology, ESG, tourism and halal sectors.
SME Bank – now a subsidiary of Bank Pembangunan Malaysia Berhad (BPMB) as of May 1, 2025 – launched RM211 million worth of strategic initiatives today under its mandate from the National Budget 2025. These programmes aim to support inclusive growth and build resilience among underserved segments such as the B40 and Asnaf groups.
“These initiatives, including MySMELady 2.0, Umbrella Ecosystem Financing, Dana Kelestarian Alam and Maju Usahawan Madani demonstrate our comprehensive approach to nation-building and our commitment to strengthening the national entrepreneurial landscape,” said SME Bank Chairman Datuk Muslim Hussain.
The new financing schemes include MySMELady 2.0, which offers up to RM3 million at 5% per annum for women entrepreneurs, and Umbrella Ecosystem Financing, providing up to RM1 million at 4% per annum for Bumiputera MSMEs and start-ups.
Dana Kelestarian Alam supports green business transformation, with financing up to RM5 million and rates between 3.5% and 6% annually.
Two capacity-building programmes were also rolled out. The Maju Usahawan Madani programme, delivered via CEDAR, aims to train 3,000 entrepreneurs, while the SME Bank iTEKAD ISHRAF 4.0 initiative targets 400 B40 and Asnaf entrepreneurs with the goal of boosting sales by at least 10%.
Muslim added that SME Bank has already approved RM2 billion in financing as of May 2025 and remains on track to meet its RM3 billion full-year target.
In addition to the newly launched schemes, SME Bank will continue offering existing options such as the Vanigham Financing Scheme, HalalBiz Financing, SME Technology Transformation Fund and Jaguh Serantau, alongside development initiatives like the Business Export Programme.
Under Budget 2025, SME Bank is set to receive RM1.172 billion in phases to implement key programmes. BPMB will provide RM6.4 billion in sectoral financing, while RM600 million will be made available for halal certification through SME Bank and BPMB.
Loan guarantees worth RM20 billion will be offered via Syarikat Jaminan Pembiayaan Perniagaan (SJPP), with RM5 billion earmarked for Bumiputera SMEs. Bank Negara Malaysia will also channel RM3.8 billion towards digitalisation, automation, agri-food and green practices.
The government has further allocated RM100 million to expand the iTEKAD social finance programme and RM50 million to support social enterprises.
(Web Source: https://themalaysianreserve.com/2025/06/26/sme-bank-rolls-out-rm211m-strategic-initiatives-to-boost-madani-economy/)