GEORGE TOWN: Allocation for micro, small and medium enterprises (MSMEs) this year has been increased from RM50bil to RM60bil following the additional RM10bil financing injection by Bank Negara, says Steven Sim.
The Entrepreneur Development and Cooperatives Minister said the additional allocation comprised RM5bil under SME assistance funds and another RM5bil in guarantees by Syarikat Jaminan Pembiayaan Perniagaan (SJPP).
He said the extra financing was meant to address the impact of the global supply chain crisis on small traders and businesses.
“The overall allocation for the MSME sector this year has increased from RM50bil under Budget 2026 to RM60bil.
“National-level meetings will also be held at least twice yearly to discuss issues affecting hawkers and small traders,” he told reporters after attending the 2026 National Hawkers and Small Traders Advisory Council (M3PK) meeting at a hotel here yesterday.
Sim said the meeting also discussed the Power Up 10K campaign, which aims to channel up to RM15bil in financing to the MSME sector this year.
“As of April, about RM4bil in financing has been approved involving 154,000 entrepreneurs and Malaysian companies.
“Several banks have recently introduced products targeted at SMEs in line with government efforts to support the sector amid global economic uncertainty,” he said.
He added that UDA Holdings Berhad would provide rental discounts of up to 20% for businesses renting premises under its management.
“Tenants will receive a 10% discount, while MSME operators will receive an additional 10%, bringing the total discount to 20%
“UDA will also offer a three-month rental moratorium for MSME operators facing cash flow difficulties and absorb any increase in service charges without passing the cost to tenants.
“The initiative, involving about 1,000 UDA business premises nationwide, is expected to cost the agency RM12.5mil until year-end,” he said.
