Malaysia sets record RM57 billion financing allocation for MSMEs

Malaysia has earmarked RM57 billion under Budget 2027 for financing facilities supporting MSMEs, a record allocation, according to Entrepreneur Development and Cooperatives Minister Steven Sim Chee Keong. He said the funding would help smaller businesses withstand uncertainty in the global economy.

Addressing the Enterprise 50 (E50) Awards in Kuala Lumpur on October 16, 2026, Sim put the previous allocation at RM50 billion. He said the government wanted to improve businesses’ access to funding, bring down their costs and make public services more effective.

Sim identified rising energy prices and disrupted supply chains as pressures on MSMEs. He said an exemption granted to the sector from the latest minimum wage increase was intended to relieve operating-cost pressures. That relief did not alter the government’s ambition for Malaysians to earn higher wages, he added.

At the same event, SME Corp Malaysia chief executive officer Rizal Nainy reported RM420 million in potential sales from its two-day E50 Business Matching programme. The initiative sought to help MSMEs reach overseas markets and find business partners.

Rizal said the E50 programme also featured an export conference. Award nominations reached 160, the largest number recorded since the awards began in 1997. A total of 50 MSMEs received awards recognising their achievements, business performance and capacity to expand.