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FORMER finance minister Lim Guan Eng has proposed that government-backed financing for non-Malay micro, small and medium enterprises (MSMEs) be administered through Bank Simpanan Nasional (BSN), saying it would improve access to funding and reduce administrative constraints faced by certain business groups.
Lim, who is also former Penang chief minister, said rising living costs were putting pressure on MSME operations, particularly in cash flow management and supply chain stability, making it necessary to streamline access to financing.
He suggested that RM150 million in loans allocated to non-Muslim companies should be placed under BSN rather than SME Bank and Bank Rakyat, arguing that the latter institutions operate primarily under Shariah-compliant frameworks.
“The RM150 million loans to non-Muslim companies should be placed under BSN, which has no restrictions, instead of under the SME Bank and Bank Rakyat as both requires MSMEs to be syariah compliant,” he said in a statement.
Lim said this structure could disadvantage Chinese-owned MSMEs involved in sectors such as food and beverage, traditional Chinese medicine, and entertainment, which may not operate under Shariah-compliant business models.
He also pointed to the RM50 million Skim Pembangunan Usahawan Masyarakat India (SPUMI) under TEKUN Nasional, saying it also requires Shariah-compliant business activities for fully Indian-owned companies.
“There is no problem for TEKUN’s RM1 billion loan for Malay businesses to comply with the syariah requirement,” he said.
“In other words, both Indian and Chinese owned companies must be syariah compliant even though they are not Muslims,” he added.
Lim argued that claims that financing is equally accessible across communities were misleading if certain schemes still imposed operational conditions that excluded parts of the business community.
“Those who claim that such loans show that the financing needs of businesses from all communities are treated fairly are both dishonest and discriminatory when the loans specifically for Indians and Chinese are subject to restrictions,” he said.
He further said that while agencies such as TEKUN Nasional, SME Bank and Bank Rakyat should continue focusing on Shariah-compliant financing, alternative arrangements were needed to ensure equitable access.
“We must respect the right of Tekun Nasional, SME Bank or Bank Rakyat to decide to conduct business only in the syariah compliant sector.
“To ensure equal financing access for all MSMEs, such RM100 million Chinese MSMEs loans and RM50 million SPUMI loans for Indians should be placed under BSN, which does not impose syariah-compliant restrictions but allows its customers to choose between Islamic and non-Islamic banking,” he said.
Lim also argued that BSN would be better positioned to manage such programmes due to its wider branch network, with 387 branches nationwide compared with 17 for SME Bank and 148 for Bank Rakyat.
He said BSN’s reach would allow broader access, including in Sabah and Sarawak, making it a more practical channel for nationwide MSME financing distribution. - June 2, 2026