KUALA LUMPUR: The MADANI government will provide more than RM5 billion in microfinancing facilities in 2026, expected to benefit over 400,000 micro-entrepreneurs nationwide through loans of up to RM100,000.
The Ministry of Finance (MoF) said in a statement today that various financing schemes will be channelled through agencies and development financial institutions such as Amanah Ikhtiar Malaysia (AIM), Bank Simpanan Nasional (BSN), TEKUN Nasional, Majlis Amanah Rakyat (MARA), Agrobank and Bank Rakyat.
For certain schemes, financing rates offered are as low as three per cent per annum.
Prime Minister Datuk Seri Anwar Ibrahim said in the same statement that the relevant financial institutions have been instructed to intensify outreach efforts to reach as many small traders, hawkers and micro-entrepreneurs as possible, particularly those facing capital constraints.
"At the same time, the application process must be simplified, financing conditions should not be burdensome, and financing must be provided fairly and reasonably.
"The MADANI Economy is grounded in the values of compassion, justice and equality. These microfinancing facilities must reach people seeking to earn a lawful income and build a more dignified life,” he said.
Anwar, who is also the finance minister, said the microfinancing facilities are targeted at various groups, including small traders, night market hawkers, women, the youth, gig workers, technical and vocational education and training (TVET) graduates, small contractors, padi farmers and asnaf groups.
He said the microfinancing facilities are separate from the newly announced financing facilities for micro, small, and medium enterprises (MSMEs), particularly the RM5 billion SME Special Relief Facility under Bank Negara Malaysia and the RM5 billion facility under Syarikat Jaminan Pembiayaan Perniagaan (SJPP).
"In total, more than RM15 billion in financing support has been made available to MSMEs this year,” he said. - Bernama
