KUALA LUMPUR: The government’s RM5bil financial guarantee initiative for micro, small and medium enterprises (MSMEs) is expected to provide a significant boost to the sector, particularly exporters, by strengthening their working capital and sustaining trade momentum amid current cost pressures.
Malaysia External Trade Development Corp (Matrade) chairman Datuk Seri Reezal Merican Naina Merican said sufficient financing access is critical for export-oriented companies, as working capital remains a key requirement in maintaining operations and fulfilling international orders.
He said the newly announced RM5bil facility would have a meaningful impact on MSMEs compared with smaller financing allocations previously discussed, which were seen as insufficient to address the scale of current challenges.
“The RM5bil will help MSMEs in terms of financing their capital. For a company that is involved in export, the most important thing is working capital.
“So with RM5bil in financing, I think it will give a huge impact to MSMEs,” he told a media briefing on Malaysia’s first-quarter 2026 trade performance yesterday.
Reezal Merican noted that in the present economic environment, continued spending is essential to avoid a contraction in business activity, stressing that companies should maintain operational momentum while ensuring better cost management.
“At the same time, efforts must focus on reducing leakages to ensure that financial resources are utilised efficiently and effectively,” he said. — Bernama
