Minister of Entrepreneur and Cooperatives Development (KUSKOP), Datuk Ewon Benedick said that the government has already channeled RM5.76 billion in financing to 261,651 micro SME (MSME) entrepreneurs from January to August this year, while also enhancing the capacity and capability of MSMEs through integrated and targeted development programmes such as the Vendor Capacity Development Programme 2.0, involving 30 vendor companies with an allocation of RM3.5 million.
“Additionally, SME Corporation Malaysia is implementing the Business accelerator Programme for 197 SME entrepreneurs with an allocation of RM34.12 million,” he said in Parliament.
The minister also mentioned the initiative launched by the government, dubbed the Micro Financing Scheme for Hawkers and Small Traders (MPPK 2.0) under Bank Rakyat for informal entrepreneurs by offering zero-profit financing specifically for hawkers and small traders, with a total of RM567,500 being granted to 19 entrepreneurs as of 7 September 2024.
Additionally, the MyMall platform that was introduced to provide free online marketing space for MSMEs and local cooperatives managed to gain a total of 2,544 traders registered, offering 2,082 products with a sales value of RM8.86 million as of September 2024.
The minister further elaborated that the ministry has held engagement sessions in August with stakeholders, hawkers and small traders in Sabah, in order to formalise nearly 1 million informal entrepreneurs and provide assistance to them.
Despite this, SME Bank Bhd expressed its hopes for the government to introduce more strategic measures to support the growth of small and medium-sized enterprises (SMEs) that focuses on sustainability, financial resilience and digital transformation in the upcoming national Budget 2025.
Its acting group president and chief executive officer Datuk Dr Mohammad Hardee Ibrahim told Malaysia’s national news agency, Bernama of the crucial role that financial institutions play, especially development financial institutions (DFI), when it comes to the country’s economic development.
Currently, SME Bank is the only DFI in Malaysia with a dedicated capacity-building outfit that operates through its subsidiary, the Centre for Entrepreneur Development and Research Sdn Bhd (CEDAR), which benefitted more than 82,000 entrepreneurs.
This year, SME Bank aims to provide financial assistance to the affirmative segments such as tourism, transportation, education, construction, healthcare and manufacturing sectors, which requires additional support to navigate the current economic climate.
“The expansion of funding requirements and government guarantee schemes are crucial, predominantly for the affirmative segments like women entrepreneurs, tourism, halal sectors, exports and the adaptation of IR4.0, which (would require) SMEs to evolve within the digital and technological realms.
“As such, we hope the government can consider providing greater access to more affordable financing options via profit rate subsidies or grant allocations, which should be supported with capacity building programmes,” Hardee said.
Hardee further highlighted that SME Bank is committed in ensuring that entrepreneurs are market-ready through practical technical and non-technical training with proven business models. He also emphasised that deeper integration of artificial intelligence (AI) would help entrepreneurs nurture an environment that facilitates faster financing approval processes with less human intervention.
