The Malaysian Reserve
2 July 2026
Over RM500m microfinancing approved since mid-May
MORE than RM500 million in microfinancing has been approved since mid-May, benefiting over 30,000 entrepreneurs, as the government moves to cushion small businesses from rising logistics and input costs.
Finance Minister II Datuk Seri Amir Hamzah Azizan said the government is closely monitoring the impact of prolonged geopolitical tensions in West Asia on the global economy, including cost pressures faced by hawkers, micro traders and micro, small and medium enterprises (MSMEs).
“The government is aware that these pressures are also felt by hawkers and micro, small and medium enterprises, which are among the groups most vulnerable to cost shocks,” he told the Dewan Rakyat today.
Amir Hamzah was replying to Kalabakan MP Datuk Andi Muhammad Suryady Bandy, who asked what immediate steps had been taken to ensure small traders, hawkers and MSMEs are not forced to shut down due to global economic pressure.
He said the government had strengthened access to financing for MSMEs through loans and government financing guarantees worth RM15 billion via banks and government agencies.
This includes more than RM5 billion in microfinancing through Amanah Ikhtiar Malaysia, Agrobank, Bank Simpanan Nasional, Bank Rakyat, Mara and Tekun Nasional.
Amir Hamzah said the facilities allow small traders to obtain working capital to sustain their businesses despite higher costs.
For the period between May 15 and June 26, 2026, more than RM500 million in microfinancing had been approved, benefiting over 30,000 entrepreneurs.
He said the government had also launched the RM5 billion Skim Jaminan Bantuan Kerajaan MADANI through Syarikat Jaminan Pembiayaan Perniagaan Bhd (SJPP) to improve MSME access to financing.
Between May 15 and June 30, SJPP approved RM219 million in financing guarantees, benefiting more than 300 MSMEs, particularly in the agro, construction, logistics and tourism sectors.
SJPP is also working with banks to facilitate restructuring, rescheduling and targeted repayment assistance for businesses facing difficult conditions.
Amir Hamzah said Bank Negara Malaysia is also providing RM5 billion under the SME Stabilisation Relief Facility (SME SRF) to support affected MSMEs.
Since its launch in mid-May 2026, almost RM1 billion has been approved to more than 1,500 MSMEs.
He said about RM4 billion remains available under the facility, providing sufficient financing space for future applications.
In a supplementary reply, Amir Hamzah said SJPP provides guarantee coverage of up to 80%, compared with the usual coverage of about 70%, with the guarantee period extended up to 10 years.
He said the scheme also offers a reduced guarantee fee of 0.75% per year, compared with the normal rate of about 1%.
“This approach serves as a significant credit enhancement to help viable MSMEs that lack collateral gain access to financing for working capital and capital expenditure,” he said.
Under the SME SRF, eligible SMEs may obtain financing of up to RM750,000 for up to five years, with a maximum financing rate of 3.75% per year, including the guarantee fee.
The financing is supported by guarantees of up to 80% from Credit Guarantee Corporation Malaysia or SJPP, especially for SMEs without sufficient collateral.
Amir Hamzah said banks are also open to using alternative assessment methods when evaluating applicants, including transaction flows and bank statement balances.
This is to improve access for micro businesses and small entrepreneurs that may not have complete financial records or business documentation.
He said the government is also using direct cash assistance to support domestic demand.
With an allocation of RM15 billion, Sumbangan Tunai Rahmah and Sumbangan Asas Rahmah have benefited almost nine million recipients, while SARA Untuk Semua has benefited 22 million people.
Amir Hamzah said the assistance would be spent at grocery stores, markets, food stalls and local business premises, helping to support MSME income nationwide.
As of June 2026, more than 13,000 SARA merchants were involved, including 6,000 small grocery stores.
(Web source: https://themalaysianreserve.com/2026/07/02/over-rm500m-microfinancing-approved-since-mid-may/amp/)