JOHOR BARU: A programme to support micro, small and medium enterprises (MSMEs) with a fund of RM205mil has been launched, says Steven Sim.
The Entrepreneur Development and Cooperatives Minister said the effort is to help businesses cope with economic challenges stemming from global supply chain disruptions caused by ongoing conflicts in the Middle East.
He said Program Sokongan Industri dan Perniagaan Rakyat (Sinar) was introduced under SME Corp as part of the government’s efforts to channel more funds to the MSME sector and strengthen business resilience.
The initiative aligns with the ministry’s broader agenda to provide relief and financing support to entrepreneurs at a time when many businesses are grappling with rising costs and market uncertainty.
“One of the most pressing needs today is capital injection.
“Businesses need funding not only for survival, but also to expand and grow their operations,” he said after launching Karnival Hebatkan Perniagaan Malaysia 2026 at a shopping mall in Tampoi here yesterday.
Sim said the government had increased the total financing allocation for SMEs this year from RM50bil under Budget 2026 to RM60bil.
He said the Sinar programme would comprise five key initiatives, including three financing schemes and two capacity-building measures.
The first is a soft financing scheme for MSMEs implemented in collaboration with Malaysian Industrial Development Finance Berhad, offering loans of up to RM5mil at an annual interest rate of 5%.
The second initiative is a capacity enhancement financing scheme that provides loans ranging from RM500,000 to RM1.5mil, also at 5% annual interest rate.
The programme will be implemented through SME Corp Malaysia and its strategic partner microLEAP to help businesses improve operational capabilities and competitiveness.
The third scheme, known as Prestij Financing, targets high-impact SMEs and offers financing of up to RM1mil as well as invoice financing facilities of up to RM500,000 at an interest rate of 3% annually.
Sim said businesses with good repayment records would be eligible for rebates of up to 30%, effectively reducing their financing costs.
Apart from financing assistance, Sinar also includes the Inclusive Business Scaling Programme, which provides grants of up to RM200,000 for capacity-building initiatives, particularly for businesses seeking to integrate inclusive communities into their supply chains and upgrade their operations.
The fifth initiative offers a 50% discount on applications for MSME status certification, which serves as official recognition that a business meets the national definition of an MSME and qualifies for various government assistance programmes.
Sim said the discounted registration offer would be available from now until the end of the year.
