Malaysia Moves to Deepen SME Financing Access Through KUSKOP–BNM Collaboration
PETALING JAYA, April 28 — Malaysia is stepping up efforts to reinforce the financing landscape for micro, small and medium enterprises (MSMEs), with a renewed focus on widening access to credit for emerging entrepreneurs and first-time borrowers.
Entrepreneur Development and Cooperatives Minister Steven Sim Chee Keong said inclusive financing remains central to ensuring that more businesses can obtain the capital needed to grow, particularly amid ongoing global economic volatility.
The issue was a key point of discussion during a recent engagement with Abdul Rasheed Ghaffour, Governor of Bank Negara Malaysia, where both sides explored ways to enhance the role of financial institutions in strengthening MSME support.
Blended Financing Gains Traction as Alternative Model
Steven Sim highlighted the growing importance of blended financing, a hybrid approach that combines traditional banking with capital market instruments to provide more flexible and accessible funding solutions.
He noted that such models can better address the diverse needs of MSMEs, particularly those that may face challenges in securing conventional loans.
KUSKOP also welcomed the central bank’s RM5 billion SME Stabilisation Relief Facility (SME SRF), introduced to assist businesses affected by global supply disruptions and economic pressures.
Coordinated Effort Needed Across Ecosystem
The minister stressed that building a resilient MSME sector requires collaboration across multiple stakeholders, including government agencies, financial institutions, banks and industry players.
He described the strategy as a comprehensive, whole-of-ecosystem approach aimed at strengthening business resilience and sustaining long-term growth.
“This collective effort is crucial to ensure that Malaysian businesses remain competitive and continue to expand despite external challenges,” he said.
Strong Lending Base Supports Future Expansion
As of March 2026, total financing extended to MSMEs by banks and development financial institutions had reached RM443.8 billion, accounting for nearly 51 per cent of total business lending in the country.
The figure reflects the significant role MSMEs play in Malaysia’s economy and underscores the importance of continued policy support to sustain their growth.
With stronger coordination between policymakers and financial institutions, Malaysia aims to create a more inclusive and dynamic financing ecosystem that empowers MSMEs to scale and thrive.
-wilayah.com.my
