PETALING JAYA: Financing to micro, small and medium enterprises (MSMEs) by banking institutions and development financial institutions (DFIs) reached RM443.8bil as at March 2026, says Steven Sim.
The Entrepreneur Development and Cooperatives Minister said this accounts for nearly 51% of total business loans, providing a strong foundation for further strengthening.
He stressed that addressing current challenges requires an "all hands on deck" approach involving the government, financial institutions, the banking sector and the wider entrepreneurial ecosystem, in line with the ministry's mission to empower Malaysian businesses.
"The ministry is committed not only to ensure more local businesses remain resilient amid global economic challenges arising from the ongoing Middle East conflict, but also to seize opportunities to grow, enhance productivity and move to the next level," he said in a statement on Tuesday (April 28).
He also welcomed Bank Negara's announcement of the RM5bil SME Stabilisation Relief Facility, aimed at assisting MSMEs affected by global supply disruptions linked to the prolonged conflict in West Asia.
The announcement coincided with a meeting between Sim and Bank Negara governor Tan Sri Abdul Rasheed Ghaffour earlier, where they discussed the central bank's strategic role and that of financial institutions in strengthening the MSME ecosystem amid prevailing economic uncertainties.
During the meeting, he said both parties explored efforts to expand financing support for MSMEs, including improving access to credit and more inclusive financing, particularly for new entrepreneurs and first-time borrowers.
Sim also highlighted the potential of hybrid or blended financing approaches, combining the strengths of the financial sector and capital markets to support MSME growth.
