The Securities Commission Malaysia (SC) recently launched an alternative financing scheme offered by nine SC-registered peer-to-peer financing (P2P) platform operators under the government e-procurement system.
In a statement, SC noted that the financing scheme, SARANA is now effective and aims to address the working capital needs of micro, small and medium enterprises (MSMEs) and small contractors participating in government contracts for supplies, services or works.
The statement explained that SARANA offers two primary financing options, namely invoice financing which supports cash flow post-contract delivery and financing for contract implementation to bridge contractors’ initial working capital needs before a project is executed.
The participating P2P platform operators are Bay Smart Capital Ventures Sdn Bhd, B2B Finpal Sdn Bhd, Capshere Services Sdn Bhd, Crowd Sense Sdn Bhd, P2P Nusa Kapital Sdn Bhd, FBM Crowdtech Sdn Bhd, MicroLEAP PLT, Modalku Ventures Sdn Bhd and Moneysave (M) Sdn Bhd.
With the government’s support for P2P financing as announced in Budget 2025, SARANA provides a viable alternative to bridge critical funding gaps, particularly for companies facing challenges in assessing traditional financing.
This initiative to enable access to the capital market through P2P platform operators is also in line with SC’s Catalysing MSME and MTC Access to the Capital Market: Five-year Roadmap (2024-2028).
At the same time, Entrepreneur and Cooperatives Development Minister Datuk Ewon Benedick announced that the MSMEs’ contribution to the national economy has not met the target set under the 12th Malaysia Plan (12MP) and that the contribution to the national gross domestic product (GDP) needs to reach 41% by 2025 while their contribution to total exports must hit 15%.
In the year 2023, MSMEs’ GDP recorded a 5% growth, contributing 39.1% (RM613.1 billion) to the national GDP, while their export contribution rose to 12.2% (RM152.2 billion).
“Meanwhile, cooperatives generated RM64.6 billion in revenue and held assets valued at RM165.9 billion (as of 31 December 2025). However, these achievements remained below target,” he said, adding that the ministry is planning several strategic measures to deliver a greater impact on the entrepreneurial sector.
On cooperatives, he said that while the RM60 billion revenue target for cooperatives was achieved ahead of schedule, the greater challenge is for the cooperative movement to maintain this achievement and increase revenue further to a more optimal level, in line with initiatives and interventions that have been implemented.
He noted that the Entrepreneur and Cooperatives Development Ministry (KUSKOP) has key targets that need to be achieved at the end of the 12MP, which concludes this year. These include raising GDP growth, exports and MSME productivity, along with increasing cooperatives revenues.
The minister also recently launched the ministry’s 2025 Strategic Plan document themed ‘Transformation for Excellence’ that focuses on creating a conducive ecosystem to accelerate growth and ensuring stability for the nation’s entrepreneurial sector.
To realise these objectives, Ewon said that 21 strategies, five enablers and 196 activities – including 20 flagship programmes – and six key performance indicators (KPIs) have been outlined under the plan.
“These cover policy formulation, governance, capacity development, access to financing and market accessibility. The programmes and projects planned will benefit 508,498 entrepreneurs and potential entrepreneurs as well as cooperatives,” he said.
Meanwhile, Ewon also revealed that 333,653 entrepreneurs and cooperatives received financing assistance last year, including microcredit financing, entrepreneurship grants and soft loans, totaling RM9.58 billion in 2022 and RM9.54 billion in 2023.
He also said that KUSKOP aims to provide more insight financing this year, especially with the organisation of events related to the country’s ASEAN chairmanship.
“At the same time, we will intensify efforts to scale up small businesses to medium-sized ones, targeting 5% business growth by 2027. To achieve this, we must provide the capital needed by these entrepreneurs,” he said.
Ewon also expressed gratitude to financing agencies under his ministry, including TEKUN Nasional and Amanah Ikhtiar Malaysia (AIM) that reduced their non-performing loan (NPL) rates from double digits to single digit in 2024.
“TEKUN has reduced its NPL rate from over 12% to 9.8%. AIM, meanwhile, achieved its best-ever performance since its establishment 28 years ago with an NPL rate of just 0.02% in 2024,” he said.
Ewon also noted that KUSKOP implemented a total of 204 programmes last year, benefiting almost 800,000 MSME entrepreneurs, cooperatives, social enterprises, hawkers and small traders as well as informal entrepreneurs.
