SHAH ALAM, April 7 — The government is proposing that banks accelerate loan approvals and offer flexible repayments, including moratoriums, to support Malaysia’s micro, small and medium enterprises (MSMEs) amid rising operational costs and global uncertainties.
The Entrepreneur and Cooperatives Development Ministry (KUSKOP) said these are among measures proposed by its minister Steven Sim Chee Keong under a 10-point action plan.
They were presented to top managers of 12 financial institutions under the Association of Banks in Malaysia (ABM) during a meeting held at the Asian Institute of Chartered Bankers (AICB) Building in Kuala Lumpur recently.
“The engagement focused on strengthening coordination between the banking sector and the government in supporting Malaysia’s MSMEs amid ongoing global uncertainties and rising energy-related cost pressures,” the ministry said in a statement today.
The measures proposed in the action plan are to:
Prioritise essential business support by ensuring continued access to working capital financing
Adopt more inclusive and practical assessment criteria for MSMEs to improve access to financing
Accelerate loan processing and approval timelines to ensure faster delivery of support to businesses
Enhance flexibility during periods of uncertainty by restructuring and rescheduling financing repayments, and, where necessary, providing repayment moratoriums on a case-by-case basis
Strengthen collaboration between commercial banks, KUSKOP and development financial institutions (DFIs) through syndicated financing
Adopt a “no wrong door” approach by referring MSMEs to suitable products and services across other financial institutions, including DFIs
Intensify collaboration on capacity-building programmes
Step up the promotion and rollout of MSME-focused financial products
Collaborate with SME Corp Malaysia to enhance the value and recognition of MSME status accreditation
Work with KUSKOP under the PowerUp10k initiative to drive the scale-ups of Malaysian businesses
KUSKOP also said that Sim “expressed his appreciation to the top management representatives from 12 banks in attendance for their positive and supportive responses to the proposals, and reiterated the importance of a whole-of-ecosystem approach in supporting MSMEs”.
“He noted that continued collaboration between the government and financial institutions is critical to ensuring Malaysian businesses remain resilient, competitive, and ready for growth despite global challenges,” the statement read.
