The Unity Government remains committed to strengthening the development of micro-enterprises through a dedicated allocation of RM400 million, as announced under the Madani Economy framework.
This includes an allocation of RM100 million under the Ministry of Entrepreneurship and Cooperative Development (KUSKOP) through its agency, SME Corporation Malaysia, for the Micro Madani Enhancement Program (Micro Madani).
The launch of the Micro Madani Program was officiated by Datuk Ewon Benedick, Minister of Entrepreneurship and Cooperative Development, at the Putrajaya Marriot Hotel today.
The Micro Madani Program provides financial assistance to micro-enterprises in the form of grants, loans, and vouchers for registering as Micro, Small, and Medium Enterprises (MSMEs) through five main initiatives:
i. Micro Business Grants (MBG); ii. Micro Business Financing (MBF); iii. Micro Youth Business Grants@TUBE (Bumiputera Youth Entrepreneurs); iv. Bumiputera Enterprise Enhancement Program (BEEP) Plus Sabah and Sarawak; and v. MSME Registration Vouchers.
Grants, matching up to 70% of project costs, aim to help micro-enterprises enhance their capabilities and capacities, including the acquisition of machinery and equipment, product packaging improvements, ICT and e-commerce adoption, business premise rentals, and promotional activities to boost sales and branding. This assistance is available through all initiatives under Micro Madani, except the financing program.
For loan financing, the assistance enables micro-enterprises to finance working capital needs and the purchase of machinery and equipment, up to a maximum of RM200,000, at an interest rate as low as 2% per annum through cooperation with the Malaysian Industrial Development Finance Berhad (MIDF).
Under the MSME registration voucher incentive, micro-enterprises are eligible to receive financial assistance in the form of a RM100 voucher for MSME registration processing fees under SME Corp. Malaysia.
Ewon Benedick said, “KUSKOP strongly supports the government’s initiatives to empower micro-enterprises, especially those affected by the previous COVID-19 pandemic. For the year 2023, a total of 81 programs are being implemented for micro-enterprise development with an allocation of RM8.8 billion.
“This does not include other programs that are also open for micro-enterprises, with a total allocation of RM924.8 million.”
He added that special programs to assist micro-enterprises in Sabah and Sarawak, as well as micro-businesses owned by the Indian community, are also offered through the Micro Madani Program.
According to Tan Sri Bernard Giluk Dompok, chairman of SME Corp. Malaysia: “In 2022, MSMEs represented 97.4% of the total business organizations in Malaysia, with almost 80% (78.7%) of them being micro-enterprises.
“Therefore, there is a need for the government to provide specific attention and planning to support this group, which is crucial to the Madani Economy framework in achieving more inclusive, sustainable, and balanced growth.”
Meanwhile, Rizal bin Nainy, CEO of SME Corp. Malaysia, said, “Applications for the Micro Madani Program are now open to micro-enterprises nationwide starting today. Applications can be submitted online, and more information can be accessed on the SME Corp. Malaysia website at http://smecorp.gov.my/MIKROMADANI.
Several roadshows for the Micro Madani Program will also be held nationwide, starting with Kuantan in Pahang on September 22, followed by Kuching in Sarawak (October 1), Johor Bahru in Johor (October 10), Alor Setar in Kedah (October 12), and finally Kota Kinabalu in Sabah (October 17).”
At the same event, Ewon also presented Training Completion Certificates and replica checks for Initial Business Grants of up to RM30,000 each to 16 participants of the Bumiputera Youth Entrepreneurs Program (TUBE).
Also present at the launch of the Micro Madani Economic Enhancement Program were Senator Saraswathy Kandasami, Deputy Minister of Entrepreneurship and Cooperative Development, Dato’ Sri Suriani binti Dato’ Ahmad, Secretary-General of KUSKOP.
