KUALA LUMPUR: The government’s announcement of a RM100mil financing initiative for Malaysian Chinese micro, small and medium enterprises (MSMEs) has drawn enthusiastic support from SME groups, who hailed it as a “breakthrough” in widening access to capital.
SME Association of Malaysia president Dr Chin Chee Seong described the scheme as “fantastic”, noting the low interest rates and the simplified, collateral-free structure.
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“This is a great kind of financing scheme that can really help entrepreneurs.
“Previously, we always had to go through banks, but now the process has been streamlined and made easier. I expect many MSME owners will apply,” he said in an interview yesterday.
Chin added that the eligibility criteria are flexible, allowing businesses with slightly less than 51% Malaysian Chinese ownership to apply, as long as the majority shareholders are Malaysians.
He urged banks to process applications quickly, adding that any issues could be relayed back to the association.
Associated Chinese Chambers of Commerce and Industry of Malaysia (ACCCIM) treasurer-general and SMEs committee chairman Datuk Koong Lin Loong welcomed the doubling of the allocation from RM50mil to RM100mil, calling it a “promising start” for the ministry’s first Chinese-focused financing initiative.
“This is a breakthrough and a positive step towards a more inclusive society,” he said.
The RM100mil allocation, he said, while a positive start, should be expanded over time to ensure long-term impact.
He added that the scheme should prioritise SMEs unable to obtain loans from commercial banks, rather than duplicating financing for companies that already qualify for conventional bank funding.
“There is no point in helping the same SMEs that already have access to commercial loans. This initiative should focus on businesses that genuinely cannot obtain financing from banks,” he said.
Koong also called on banks to adopt a more developmental approach in assessing micro and small enterprises, including flexible evaluations based on cash flow and business performance rather than rigid documentation.
“For micro SMEs, banks should not operate like normal commercial lenders. They should start small, test repayment capacity, and gradually increase financing as businesses grow and prove their performance,” he said.
He stressed the importance of awareness and outreach, particularly to microenterprises without collateral, and urged the ministry to work closely with trade associations to reach smaller operators.
