Malaysia’s small and medium businesses are set to receive another major financial boost as the government rolls out a new RM5 billion financing initiative aimed at helping SMEs navigate ongoing economic uncertainty and rising global pressures. Starting from 15 May 2026, micro, small and medium enterprises (MSMEs) across Malaysia can officially apply for financing under the new SME Stabilisation Relief Facility (SME SRF) introduced by Bank Negara Malaysia.
Under the facility, eligible businesses can obtain financing of up to RM750,000 with a maximum interest or profit rate of only 3.75% per annum, making it one of the more affordable financing options currently available for Malaysian SMEs.
According to a media statement released by the Ministry of Entrepreneur Development and Cooperatives (KUSKOP), the facility is designed to help businesses facing pressure from current economic challenges, including global energy supply disruptions, rising operating costs, and wider economic uncertainty.
KUSKOP Urges Banks To Speed Up Approval Process
In the statement, Entrepreneur Development and Cooperatives Minister Steven Sim Chee Keong called on all participating financial institutions to accelerate the application, approval, and disbursement process so businesses can receive assistance faster.
KUSKOP stressed that financing support must be delivered through procedures that are more flexible, SME-friendly, and practical, especially for smaller businesses that often struggle to secure funding through conventional channels.
The ministry also urged financial institutions to continue playing their role as strategic partners to the SME ecosystem by adopting a more inclusive approach when assessing applications from micro-enterprises and small businesses.
For many SMEs currently dealing with slower consumer spending, rising operational expenses, and uncertain market conditions, faster access to affordable financing could become a critical lifeline.
Total SME Support Increased From RM50 Billion To RM60 Billion
The newly announced RM5 billion SME SRF facility is also being complemented by an additional RM5 billion in guarantees provided by Syarikat Jaminan Pembiayaan Perniagaan (SJPP).
With the latest additions, the total funding and guarantee support available for Malaysia’s SME sector this year has now increased from RM50 billion under Budget 2026 to RM60 billion.
The increase reflects the MADANI Government’s continued commitment to strengthening Malaysia’s SME ecosystem and improving business resilience despite ongoing global economic and energy-related challenges.
The SME sector remains one of the most important pillars of Malaysia’s economy, contributing significantly to employment, entrepreneurship, and domestic economic activity.
18 Banks Participating In The SME SRF Programme
Applications for the SME SRF facility are now open and will continue until 31 December 2026, or until the entire RM5 billion allocation has been fully utilised.
Among the participating financial institutions involved in the programme are:
1. Alliance Bank Malaysia Berhad / Alliance Islamic Bank Berhad
2. Affin Bank Berhad / Affin Islamic Bank Berhad
3. Ambank (M) Berhad / Ambank Islamic Berhad
4. Bank Islam Malaysia Berhad
5. Bank Kerjasama Rakyat Malaysia Berhad
6. Bank Muamalat Malaysia Berhad
7. Bank Pertanian Malaysia Berhad (Agrobank)
8. Bank Simpanan Nasional
9. CIMB Bank Berhad / CIMB Islamic Bank Berhad
10. Export-Import Bank of Malaysia Berhad (EXIM Bank)
11. Hong Leong Bank Berhad / Hong Leong Islamic Bank Berhad
12. Malayan Banking Berhad / Maybank Islamic Berhad
13. Oversea-Chinese Banking Corporation Limited (OCBC Bank)
14. Public Bank Berhad / Public Islamic Bank Berhad
15. Small Medium Enterprise Development Bank Malaysia Berhad (SME Bank)
16. RHB Bank Berhad / RHB Islamic Bank Berhad
17. Standard Chartered Bank Malaysia Berhad
18. United Overseas Bank (Malaysia) Berhad
According to Bank Negara Malaysia, the list of participating financial institutions may continue to be updated from time to time, and businesses are encouraged to refer to the latest information through BNM’s official Funds4SME platform.
Related articles:
KUSKOP Minister Meets BNM Governor To Strengthen MSME Financing
KUSKOP Announces Three UDA Initiatives to Support MSMEs
Discussion about this post