Industry players welcome govt's financing initiative to support MSMEs


PETALING JAYA: Industry players here have welcomed the Entrepreneur and Cooperatives Development Ministry’s financing initiative to support micro, small and medium enterprises.

Associated Chinese Chambers of Commerce and Industry of Malaysia (ACCCIM) president Datuk Ng Yih Pyng said the soft loan fund would bridge the financial gap for underserved and viable micro, small and medium enterprises (MSMEs).

“ACCCIM will work with the Ministry to ensure that business owners are aware of and can easily access the financial funds.

“The chamber can act as an intermediary, disseminating information and conducting outreach for this fund.

“This helps members navigate the fund’s application processes and work with the ministry to tailor financial support to the specific needs of MSMEs,” he said in a statement.

He also urged trade associations and chambers to encourage their members to actively apply for available assistance.

“ACCCIM hopes that the government will continue to provide targeted assistance programmes and implement capacity-building development for MSMEs,” he said.

He added that there is a need for effective execution, including ease of application and approval processes, to expedite the disbursement of funds to MSMEs.

Meanwhile, Malaysian Employers Federation (MEF) president Datuk Dr Syed Hussain Syed Husman said the initiative was timely and well-targeted in addressing persistent financing constraints faced by MSMEs.

He said access to affordable and appropriate financing remains one of the most critical challenges confronting MSMEs, particularly amid rising input costs, tighter margins, global economic uncertainty and increasing demands for productivity, digitalisation and compliance.

“MSMEs form the backbone of the Malaysian economy, accounting for more than 97 per cent of business establishments and providing employment to the majority of the workforce.

“However, many viable MSMEs continue to face structural difficulties in accessing financing that is affordable, timely and aligned with their business realities,” he said.

He also encouraged employers and MSME operators to fully leverage the financing facilities made available, while underscoring the importance of sound financial management, prudent business planning and good governance to ensure long-term viability.

Echoing a similar sentiment was Koperasi UNI-MLC Berhad secretary Ismail Ali, who said the allocation was very much needed to continue existing operations or explore new business ventures.

“Starting a new business certainly requires substantial capital.

“With this allocation, it will help revitalise cooperatives that have become increasingly inactive and are in need of funds to ensure their continued sustainability,” he said.

He said the announcement demonstrates the Minister’s concern for the fate of small cooperatives in the country.

“This allocation is the highest ever provided since the establishment of the cooperative movement in 1922.

“It clearly reflects the minister’s commitment to ensuring that cooperatives in the country are more resilient and empowered as a driving force of the people’s economy,” he said.

 

 

 

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