MSMEs, Mid-tier Firms To Benefit From RM57 Bln Financing Guarantees

KUALA LUMPUR, Oct 14 (Bernama) -- Businesses, including micro, small and medium enterprises (MSMEs) and mid-tier companies, stand to benefit from a record RM57 billion in loan and financing guarantees under Budget 2027, up from RM50 billion in 2026, economist and policy specialist Professor Geoffrey Williams said.

In a statement today, he said the package includes RM6.6 billion in microfinancing through institutions such as Amanah Ikhtiar Malaysia, TEKUN Nasional and Bank Simpanan Nasional, as well as RM32 billion in financing guarantees through Syarikat Jaminan Pembiayaan Perniagaan Bhd and Credit Guarantee Corporation Malaysia Bhd.

Williams said the MADANI government had structured Budget 2027 around three core pillars: improving access to financing, reducing business costs and expanding market opportunities.

He said corporate income tax rates for MSMEs had been reduced by up to two percentage points, potentially saving about 300,000 businesses up to RM6,000 annually.

Other measures include a 50 per cent rental discount throughout 2027 for small traders renting premises from Kuala Lumpur City Hall, as well as streamlined government procurement through direct appointments of up to RM200,000 for eligible maintenance and repair works.

He said RM30 million had also been allocated to help 4,000 MSMEs adopt artificial intelligence and automation.

“Initiatives like matching grants for first-time halal certification and an expanded RM7.5 billion in procurement opportunities for Bumiputera G1 to G4 contractors demonstrate a holistic "whole-of-government" approach that leaves no entrepreneur behind.

“By weaving together a robust RM1.028 billion allocation for KUSKOP, targeted export funding via Bank Pembangunan Malaysia Bhd and the Malaysia External Trade Development Corporation, and a firm eye on fair digital trade through the proposed E-Commerce Bill, Budget 2027 lays down a resilient foundation for Malaysia's economic future,” he added.

-- BERNAMA