Barakat and Berkat Schemes Expected to Boost SME Competitiveness and Sustainability
PETALING JAYA: The RM80 million allocation under the Barakat and Berkat financing schemes is expected to play a key role in strengthening the competitiveness and long-term sustainability of Malaysia’s micro, small and medium enterprises (MSMEs).
President of the Malaysian Employers Federation (MEF), Syed Hussain Syed Husman, said the targeted financing would help improve production capacity and business resilience, especially during festive seasons when demand peaks.
He noted that MSMEs are the backbone of the national economy, supporting domestic demand, driving local supply chains and creating employment at the community level.
“MSMEs are not secondary players. They are key economic drivers. Affordable and focused financing is essential to ensure they remain competitive and financially stable,” he said in a statement.
Addressing Festive Season Cost Pressures
Syed Hussain said festive periods often place significant financial pressure on small businesses due to rising input costs, higher inventory requirements and cash flow constraints.
Without adequate support, he warned, MSMEs could struggle to compete with larger players and imported products.
“Access to financing of up to RM30,000 at competitive rates, combined with simplified procedures, helps overcome long-standing barriers such as limited capital and excessive bureaucracy,” he said.
He stressed that improving competitiveness also requires efficient implementation mechanisms and wider market access.
Role of Agencies and Financial Platforms
MEF welcomed the involvement of agencies and regulated financing platforms in accelerating fund distribution.
These include TEKUN Nasional, SME Corp Malaysia, and peer-to-peer financing provider CapBay.
Syed Hussain said such collaborations help expand financing outreach, modernise funding channels and maintain regulatory discipline.
Need for Long-Term Support
He emphasised that sustained and focused support is crucial to protect local businesses amid intense competition, rising costs and global market uncertainties.
“Strengthening MSME competitiveness is not a short-term agenda. It is fundamental to business continuity, job preservation and long-term economic resilience,” he said.
MEF also praised the efforts of Entrepreneur Development and Cooperatives Minister Steven Sim for recognising the financial challenges faced by MSMEs, particularly during festive seasons.
He added that policies grounded in real business conditions are more likely to deliver meaningful and sustainable outcomes.
-wilayah.com.my
