A new RM5 billion financing facility aims to protect Malaysian MSMEs from global supply chain disruptions, bringing total government support to RM10 billion.
PUTRAJAYA: A special RM5 billion financing facility announced by the Prime Minister will help micro, small and medium enterprises (MSMEs) weather the global supply crisis.
Entrepreneur and Cooperatives Development Minister Steven Sim said his ministry appreciates the government’s concern with yet another special facility to aid MSMEs.
The new facility comes just a day after the Prime Minister announced three MSME support measures, including RM5 billion in financing guarantees through the Syarikat Jaminan Pembiayaan Perniagaan scheme.
Overall, the total MSME support package now stands at RM10 billion.
“MSMEs account for almost 40% of GDP and employ more than 8.1 million people here,” Sim said.
“With MSMEs so vulnerable to economic shocks, this cash injection serves as an ‘economic shield’, helping local businesses not only survive but compete on the world stage.”
Sim said combining government support with entrepreneurs’ drive will keep MSMEs as the economy’s main engine.
This ensures supply chain stability and overall public wellbeing, he added.
“KUSKOP will strengthen this with our ABCD strategy: boosting productivity, cutting red tape, improving funding access, and expanding market reach.”
On Tuesday, Anwar Ibrahim announced a RM5 billion facility for banks to support affected SMEs.
This complements prior financing guarantees and brings total aid to RM10 billion.