New Straits Times
10 October 2025
2026 Budget: SMEs to get RM50bil in loans, RM2.5bil in microloans next year
Shop owner Kadiron Padrono watches the live telecast of the 2026 Budget presentation y Prime Minister Datuk Seri Anwar Ibrahim from his shop in Pontian today.-BERNAMA PIC
KUALA LUMPUR: The government will increase the total value of loan and guarantee facilities available to local entrepreneurs to RM50 billion next year, up from RM40 billion previously.
Tabling the 2026 Budget in Parliament today, Prime Minister Datuk Seri Anwar Ibrahim said that more than RM2.5 billion in microloans will be provided through agencies such as Bank Simpanan Nasional (BSN) and TEKUN Nasional to help small and micro enterprises expand their operations.
Government guarantees under the Business Financing Guarantee Company (SJPP) will also be raised to RM30 billion, compared with RM20 billion this year.
The SJPP's scope will be expanded to include micro-entrepreneurs, in addition to companies in high-value sectors.
Meanwhile, the Malaysian Cooperative Commission will receive RM50 million in financing funds to support cooperative enterprises nationwide.
SMEs, Anwar added, are encouraged to adopt technology and digitalisation.
Since the establishment of the Business Financing Guarantee Company (SJPP), the government has guaranteed over RM100 billion in business loans, benefitting more than 84,000 SMEs across various sectors.
Demand for government-guaranteed financing has risen in recent years, Anwar said, is a clear sign of SJPP's success in supporting local traders, including Chinese entrepreneurs.
"This year alone, Bank Simpanan Nasional (BSN) approved nearly RM250 million in microloans, benefitting more than 7,200 Bumiputera, Chinese, Indian, Sabah and Sarawak entrepreneurs, as well as women, youth, hawkers, and vulnerable groups," Anwar said.
(Web Source: https://www.nst.com.my/news/nation/2025/10/1291593/2026-budget-smes-get-rm50bil-loans-rm25bil-microloans-next-year)