KUALA LUMPUR (April 7): Entrepreneur Development and Cooperatives Minister Steven Sim Chee Keong has proposed a 10-point action plan to strengthen collaboration between commercial banks and the government in supporting micro, small and medium enterprises (MSMEs).
The plan was unveiled during a meeting with 16 top banking executives led by Association of Banks Malaysia chairman Datuk Seri Khairussaleh Ramli, who is also Malayan Banking Bhd (KL:MAYBANK) president and group chief executive officer, alongside representatives from other banks including Public Bank Bhd (KL:PBBANK), RHB Bank Bhd (KL:RHBBANK) and Boost Bank. Public Bank managing director Tan Sri Dr Tay Ah Lek and RHB Bank group managing director and CEO Datuk Mohd Rashid Mohamad were also in attendance.
Key proposals of the plan include:
- Ensuring continued access to working capital financing, with 43% of SME loans tied to operational needs.
- Adopting more inclusive assessment criteria to improve financing access.
- Accelerating loan processing and approvals.
- Offering flexibility through restructuring, rescheduling, and moratoriums when needed.
- Strengthening collaboration with development financial institutions (DFIs) via syndicated financing.
- Implementing a “no wrong door” approach to refer MSMEs to suitable products across institutions.
- Expanding capacity-building programmes.
- Stepping up promotion and rollout of SME-focused financial products.
- Enhancing SME accreditation recognition in partnership with SME Corp Malaysia.
- Working with the ministry under the PowerUp10k initiative to scale up Malaysian businesses.
Additionally, Sim expressed his appreciation for the positive responses to the plan from banks and agencies, including Bank Rakyat, SME Bank and Tekun Nasional.
He also emphasised the importance of a whole-of-ecosystem approach in supporting MSMEs to ensure Malaysian businesses remain resilient and competitive despite global challenges.