KUALA LUMPUR (May 14): The government on Thursday announced that a micro-financing allocation of over RM5 billion has been set aside for 2026 to help boost the economy and provide Malaysians with wider opportunities to improve their standard of living.
The sum, which is up from over RM2.5 billion it originally announced in Budget 2026 tabled last year, is expected to benefit over 400,000 micro entrepreneurs nationwide, offering financing amounts of up to RM100,000.
The funds are channelled via various schemes under agencies and development financial institutions, including Amanah Ikhtiar Malaysia (AIM), Bank Simpanan Nasional (BSN), Tekun Nasional, Majlis Amanah Rakyat (Mara), Agrobank, and Bank Kerjasama Rakyat Malaysia (Bank Rakyat). The financing rate offered is as low as 3% per annum for certain schemes, according to the Ministry of Finance in a statement.
This micro-financing allocation is separate from the recently announced MSME (micro, small and medium enterprise) financing facilities, specifically the RM5 billion under the SME Special Relief Facility by Bank Negara Malaysia, and the RM5 billion under Syarikat Jaminan Pembiayaan Perniagaan (Business Financing Guarantee company) or SJPP.
This means more than RM15 billion in financing support has been made available to MSMEs this year, the ministry highlighted.
Prime Minister and Finance Minister Datuk Seri Anwar Ibrahim said these micro-financing facilities are targeted at various groups and micro-entrepreneurs, including small traders, night market hawkers, women, youth, gig workers, technical and vocational education and training graduates, small contractors, paddy farmers, and the asnaf group (the needy).
The relevant financial institutions have also been directed to enhance their outreach, especially to reach those struggling with capital constraints, he said after meeting with the chief executives of the agencies involved.
"These micro-financing must reach the people who wish to generate a lawful livelihood and build a more dignified life," he said, adding the application processes must be simplified, financing terms should not be burdensome, and that the financing must be provided in a fair and reasonable manner.