RM10bil boost for MSMEs


Business venture: Sim giving a thumbs-up to a trader after officiating the carnival at Stadium Batu Kawan. — ZHAFARAN NASIB/The Star

270,000 have benefited from allocation, says Sim

BATU KAWAN: Some 270,000 micro, small and medium enterprises (MSMEs) nationwide have benefited from a RM10bil allocation, says Steven Sim.

The Entrepreneur Development and Cooperatives Minister said his ministry aims to channel an additional RM5bil in financing and assistance to MSMEs by the end of the year.

“In Penang alone, RM760mil has been successfully channelled over the past eight months to about 6,000 entrepreneurs,” he said when opening the Hebatkan Perniagaan Malaysia Carnival (HPPC) here yesterday.

Sim also noted that the government had increased the allocation for MSMEs from RM50bil to RM60bil under Budget 2026.

For Budget 2027, he said the ministry had submitted proposals to the Finance Ministry based on three priorities: larger allocations for MSMEs and cooperatives, lower business costs and faster government services.

“If we cannot control factors such as global oil prices, at least we should be able to control local costs. This includes simplifying government processes, shortening processing times and reducing fees, charges and taxes where possible,” he said.

Sim said faster processing of licences, permits and financing was particularly important to small businesses.

“Every day and every second represents an opportunity and money lost. If someone wants to apply for a licence or permit and it takes one or two months, the person has to wait before starting the business,” he said.

He noted that the processing time for certain Tekun financing applications had been reduced from between 30 and 40 days to seven days.

“For financing below RM20,000, the target is for it to be approved within 24 hours,” he said.

He added that the government’s focus was not merely on large businesses but also on smaller enterprises.

On the carnival, Sim said the Penang edition was the third after Johor and Melaka, with the ministry planning to bring it to Sabah and other regions.

He said the two-day carnival was expected to attract about 100,000 visitors and generate around RM25mil in sales and business-matching opportunities.

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