KEPALA BATAS: The conflict in the Middle East is rippling through Malaysia’s economy, particularly among micro, small and medium enterprises (MSMEs), but the government is taking steps to cushion the impact, says Steven Sim.
The Entrepreneur Development and Cooperatives Minister said his ministry is engaging stakeholders, including associations representing MSMEs, hawkers and cooperatives, to assess the extent of the impact.
“We are conducting engagement sessions to obtain feedback on where the pressure points are.
“We need to first identify the problems before we prescribe solutions,” he said after launching Jualan Madani Koperasi & Usahawan (JMKU) at Permatang Sintok.
Sim said the government has rolled out targeted measures to cushion the pressure, including the PowerUp 10K initiative, which will channel at least RM15bil into the MSME and cooperative sectors this year.
“The objective is to inject liquidity and ensure these sectors remain competitive,” he said.
He said he recently met the top management of 16 banks to push for stronger financial support for MSMEs.
“We urged banks to enhance MSME-focused financial products, improve access to financing and provide flexibility for businesses facing cash flow issues.”
Sim said banks had agreed to consider assistance on a case-by-case basis, including refinancing, rescheduling, restructuring or moratoriums where necessary.
Sim said recent federal measures, including expanded financing schemes under Syarikat Jaminan Pembiayaan Perniagaan (SJPP), tax incentives and import-related adjustments, are part of broader efforts to ease the burden on SMEs.
On the digital front, he said his ministry plans to engage e-commerce platforms to strengthen support for online entrepreneurs.
“E-commerce presents strong potential, but there are also challenges, including concerns over high commission fees.
“We want to work with these platforms to build a more supportive ecosystem for MSMEs.”
Sim said discussions with various sectors, including banking, private equity and energy, are ongoing, with e-commerce players next in line as part of a broader strategy to strengthen MSME resilience amid global uncertainty.
