Steven Sim: Budget 2027 Aims To Give MSMEs More Breathing Space

Rising costs and global uncertainty are putting pressure on Malaysian businesses, and Steven Sim says MSMEs need more breathing space to navigate these challenges. Under Budget 2027, the government has provided a record RM57 billion in financing facilities to support the sector.

The commitment, an increase from RM50 billion previously, is part of a broader focus on improving access to financing, lowering business costs and making government services more efficient.

Speaking at the Enterprise 50 (E50) Awards ceremony in Kuala Lumpur, the Entrepreneur Development and Cooperatives Minister said the government recognises that businesses are dealing with pressures beyond their control.

“We know that in a time of multiple crises, the SMEs must be given the breathing space so they can face the various challenges.”

Steven Sim Highlights Three Priorities For MSMEs

The RM57 billion financing commitment represents an increase of RM7 billion, or 14%, from the previous RM50 billion.

However, access to funds is only one part of what entrepreneurs need. Steven Sim said his ministry had raised three priorities with the Ministry of Finance during the preparation of Budget 2027: more financing, lower business costs and better government service delivery.

These priorities reflected feedback from industry players and organisations representing MSMEs.

For business owners, the issues are closely connected. Financing can help support daily operations and expansion, while manageable costs and efficient government processes can give entrepreneurs more room to put their plans into action.

The RM57 billion refers to financing facilities for the sector. The reports did not provide individual application requirements, financing limits or eligibility conditions.

Helping Businesses Manage Pressures Beyond Their Control

Malaysia’s exposure to the global economy means local businesses can feel the effects of developments far beyond the country’s borders.

Higher energy costs and supply chain disruptions can increase expenses and make business planning more difficult. Steven Sim said the government is therefore focusing on domestic factors it can influence to help ease these pressures.

He also touched on an exemption for MSMEs relating to the latest minimum wage increase, describing it as a measure to ease operating cost pressures. The reports did not specify its scope, duration or eligibility conditions.

At the same time, he stressed that supporting employers through difficult conditions does not mean setting aside the ambition to create better-paying jobs.

“We all want to see Malaysians secure high-paying jobs, but as the world faces various crises, MSMEs also need to be given space to overcome these challenges,” he said.

Steven Sim Links Business Success To Malaysia’s Economy

The success of MSMEs has implications beyond individual companies. Their ability to remain competitive and expand is also important to the country’s economic performance.

Steven Sim said strengthening Malaysian businesses is central to his ministry’s mission, with the achievements of local entrepreneurs reflecting the wider impact of that work.

As he told the audience, in remarks reported by Utusan Malaysia:

“Kejayaan anda bukan sekadar kejayaan KUSKOP, apabila PMKS berjaya, ini bermakna ekonomi Malaysia juga berjaya.”

His message was that the success of MSMEs is also a success for Malaysia’s economy.

He expressed optimism that 2027 would be a better year for the sector, supported by government initiatives and the resilience of local entrepreneurs.

E50 Business Matching Generates RM420 Million In Potential Sales

Alongside the financing priorities outlined by Steven Sim, the E50 programme highlighted the importance of helping businesses reach new customers and commercial partners.

SME Corp Malaysia chief executive officer Rizal Nainy said the two-day E50 Business Matching programme generated RM420 million in potential sales.

The programme, held in conjunction with the awards, aimed to expand MSMEs’ access to export markets and create opportunities for business collaboration.

“This year’s E50 programme took a more meaningful approach. It was expanded with the E50 Export Conference and the E50 Business Matching programme,” Rizal said.

The expanded programme gave participating businesses more opportunities to explore markets and build connections. The RM420 million figure represents potential sales, rather than confirmed revenue.

Record Nominations Since The Awards Began In 1997

This year’s E50 Awards received 160 nominations, the highest number since the programme was introduced in 1997.

Rizal said the response reflected growing recognition of E50 as a platform showcasing high-performing Malaysian MSMEs.

A total of 50 companies received the award, recognising their achievements, performance and ability to expand their businesses. The awards acknowledge excellence in business growth, competitiveness, innovation and governance.

Congratulating the recipients, Steven Sim expressed hope that their achievements would encourage more Malaysian companies to move forward.

For the wider MSME community, the priorities under Budget 2027 address several concerns that shape everyday business decisions: access to funds, operating expenses and dealings with government agencies.

Sources: 1 | 2 | 3