KUSKOP Announces Three UDA Initiatives to Support MSMEs

The Ministry of Entrepreneur Development and Cooperatives (KUSKOP) welcomes the recommendation made by the Prime Minister yesterday for UDA Holdings Berhad to reduce rental rates for business premises in order to ease the burden on traders and entrepreneurs in the micro, small, and medium enterprise (MSME) sector affected by the global supply crisis.

In response to the Prime Minister’s recommendation, the company has adopted a holistic and prudent approach to assist business operators conducting their activities in shopping complexes and commercial buildings under UDA’s ownership and management by implementing three key initiatives:

First, a rental discount of up to 20%, implemented in a targeted manner under two categories. A 10% discount will be given to all tenants, along with an additional 10% targeted discount for MSME entrepreneurs through the UDA Entrepreneur Incentive Programme, effective from May until December 2026.

Second, the implementation of a moratorium as a support measure for MSME cash flow, allowing more flexible monthly rental payments. This includes permission for rental arrears of up to three months for affected tenants, subject to performance evaluation and operational needs.

Third, utility cost relief, aimed at indirectly reducing MSME operating costs through the deferment of increases in service charges for complex operations, with UDA absorbing the additional costs.