KUALA LUMPUR (April 21): Malaysia has announced a RM5 billion loan facility to support small and medium enterprises (SMEs) and other affected sectors grappling with the global energy crisis.

The special relief facility is aimed at helping businesses weather ongoing economic challenges, Prime Minister Datuk Seri Anwar Ibrahim said after chairing a roundtable with financial institutions on Tuesday. Further details will be provided by Bank Negara Malaysia (BNM) in due course, he added.

The new facility, together with an additional RM5 billion in financing guarantees under Syarikat Jaminan Pembiayaan Perniagaan (SJPP) announced earlier, forms part of broader measures to support affected MSMEs.

SJPP, wholly owned by the Minister of Finance (Incorporated), manages and administers various government guarantee schemes to bridge financing gaps faced by SMEs.

Anwar, who is also the finance minister, said the SJPP financing guarantee, which has now been increased to RM10 billion, raises guarantee coverage from 70% to 80%, with repayment extended from seven to 10 years.

He said the move is part of targeted measures to cushion the impact of global uncertainties, including geopolitical tensions, while ensuring continued economic growth.

The initiative will prioritise SMEs in logistics, agriculture and construction, while also extending support to micro-entrepreneurs, including small traders, farmers and food operators.

Anwar also called for faster approval processes under existing schemes, including SJPP, to ensure timely assistance to businesses.

To support SMEs, the government on Monday announced that the implementation of e-invoicing for businesses with annual sales of RM1 million to RM5 million will be delayed by one year until Dec 31, 2027.

In addition, temporary import duty and sales tax exemptions will be granted until year-end for Malaysian goods reimported due to disruptions arising from the Middle East conflict.

Separately, Anwar said the government will announce further measures to enhance employment opportunities, particularly for graduates and job seekers, in the near future.

He noted that Malaysia’s macroeconomic fundamentals remain strong, with growth projected at 4% to 5% this year despite external headwinds, adding that the country’s performance compares favourably with many peers.

Anwar also highlighted improving trends in key sectors such as electrical and electronics (E&E), data centres and artificial intelligence (AI), which have attracted fresh investments in recent weeks.