Sabah launches RM1mil special fund to empower MSMEs


Quality goods: Benedick checking out some traditional arts and crafts at the Sabah MSME carnival in Tenom.

KOTA KINABALU: A RM1mil special fund for entrepreneurship development has been introduced as part of efforts to empower Sabah’s micro, small and medium enterprises (MSMEs), says Datuk Ewon Benedick.

The Deputy Chief Minister III and Minister of Industrial Development, Entrepreneurship and Transportation said the initiative aims to help entrepreneurs improve production capacity and product quality and expand markets to higher levels.

“The Chief Minister has approved a special fund for Sabah MSMEs starting with RM1mil as an initiative to assist entrepreneurs facing current challenges,” he said at the Sabah MSME Entrepreneur Carnival 2026 for the Tenom district.

Benedick said the expansion of the special fund’s scope to include cooperatives as beneficiaries, in addition to entrepreneurs and entrepreneurship associations, was a positive step.

“Among the areas of assistance are start-up capital financing, product quality improvement, marketing, purchase of machinery and equipment, as well as human capital development,” he said.

He also said the SME-Up 2026 programme will be expanded to several districts across Sabah to increase participation of local entrepreneurs with outreach programmes in Kota Kinabalu, Tawau, Tenom, Keningau, Membakut, Putatan, Kota Marudu and Kadamaian.

Benedick said the programme provides assistance in the form of machinery and equipment, retort machines, trademark registration and halal certification to help entrepreneurs enhance their product’s competitiveness.

“As of 2025, a total of 5,879 entrepreneurs have received equipment and machinery assistance under this programme,” he said.

The carnival is a state government initiative to help entrepreneurs promote and sell their products more widely.

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