KUALA LUMPUR (July 8): About RM1 billion in financing has been approved under the RM5 billion SME Stabilisation Relief Facility as at June 25, benefiting around 1,500 small and medium enterprises (SMEs) significantly impacted by the conflict in West Asia, said the Ministry of Finance (MOF).

The facility, introduced by Bank Negara Malaysia in April, was designed to support SMEs grappling with operational disruptions, severe cash flow pressures and difficulties in meeting short-term financial obligations due to the ongoing conflict.

In a statement on Wednesday, the MOF said the banking industry has committed to a swift seven-day processing time for applications. With about RM4 billion in allocations still available, the ministry encouraged eligible businesses to apply.

The ministry also welcomed banks' ongoing efforts to provide targeted assistance to borrowers affected by both the conflict and broader global supply chain disruptions. The assistance, tailored to borrowers' needs and cash flow positions, includes temporary deferment of loan repayments, reduced instalments and extensions of loan tenures.

"Affected borrowers and MSMEs are encouraged to contact their respective banks early to obtain suitable assistance. They may also seek additional support through guarantee schemes under Syarikat Jaminan Pembiayaan Perniagaan (SJPP) and the Credit Guarantee Corporation (CGC), or access financial advisory services via Agensi Kaunseling dan Pengurusan Kredit, or AKPK.

"The Madani government will continue to work closely with Bank Negara Malaysia and the banking industry to ensure that the country's financial system remains stable, inclusive and supportive of the rakyat," the ministry said.

Banks have already processed loan rescheduling and restructuring applications involving more than RM4.7 billion in financing for over 1,100 borrowers since late April.

Overall financing to the SME sector also continued to grow, with outstanding SME financing rising by 5.3% in May 2026, it added.