KUSKOP allocates RM60 billion to strengthen SMEs, boost competitiveness and expand business growth
ALOR SETAR: The Ministry of Entrepreneur Development and Cooperatives (KUSKOP) will channel RM60 billion in financing this year to strengthen micro, small and medium enterprises (MSMEs) nationwide as part of the government’s broader strategy to build a more resilient, competitive and inclusive business ecosystem.
The financing initiative is aimed at ensuring Malaysian entrepreneurs are better equipped to withstand global economic uncertainties while expanding their capacity to compete in both domestic and international markets.
Minister Steven Sim Chee Keong said the government remains committed to supporting entrepreneurs from all communities, stressing that business development initiatives should focus on strengthening the country’s overall economic competitiveness rather than benefiting any single ethnic group.
He said Malaysia’s ability to succeed globally depends on building stronger local enterprises capable of innovating, expanding and creating sustainable economic value.
“Our mission is not simply to support Malay, Chinese or Indian entrepreneurs individually, but to build stronger Malaysian businesses. To compete successfully on the global stage, we must move forward together as one Malaysian business community,” he said during the MSME Financing and Market Access Briefing held in Alor Setar.
Steven noted that local businesses continue to face increasing external pressures arising from global trade disputes, supply chain disruptions, geopolitical tensions and slowing international economic activity.
Against this backdrop, he said accessible financing remains one of the government’s key priorities to help MSMEs maintain business continuity, improve productivity and pursue long-term expansion opportunities.
To widen access to capital, KUSKOP is strengthening several financing facilities through its agencies, including TEKUN Nasional, alongside the 2026 Indian Entrepreneur Capital and Economic Stimulus Package (MUDRA), enabling more entrepreneurs to obtain business funding suited to different stages of enterprise development.
In addition, Steven announced a significant enhancement to the Berkat Special Financing Programme for Chinese-Owned Micro Enterprises, with the maximum financing limit increased from RM30,000 to RM100,000.
He said the higher financing ceiling is expected to provide greater flexibility for entrepreneurs seeking to expand operations, improve business capacity and invest in productivity-enhancing initiatives.
Meanwhile, SME Corp Malaysia chairman Datuk Teng Chang Khim said MSMEs remain the backbone of Malaysia’s economy, accounting for approximately 97 per cent of all registered businesses nationwide.
He noted that Kedah alone is home to about 49,663 MSMEs, representing roughly 4.6 per cent of the country’s total MSME population.
According to Teng, the state’s business ecosystem possesses strong growth potential, particularly in sectors such as agri-food, food processing, agricultural technology, manufacturing and services.
These industries, he said, offer significant opportunities for businesses to create higher value-added products, improve competitiveness and expand into wider domestic and export markets.
Teng added that throughout the implementation period of the 12th Malaysia Plan (RMK12) from January 2021 to December 2025, SME Corp Malaysia assisted 8,904 MSMEs in Kedah through various entrepreneurship development programmes.
During the same period, the agency channelled RM23.1 million to businesses in the state, representing approximately 4.3 per cent of SME Corp Malaysia’s total programme allocations nationwide.
The continued expansion of financing programmes and business development initiatives reflects the government’s commitment to strengthening Malaysia’s entrepreneurial ecosystem, supporting sustainable business growth and enhancing the contribution of MSMEs as a key driver of national economic development, employment creation and long-term resilience.
