BARAKAT, BERKAT Financing Schemes Help MSMEs Navigate Cost Pressures, Say Industry Groups

KUALA LUMPUR, Feb 6 (Bernama) -- Sustained and well-targeted support for micro, small, and medium enterprises (MSMEs) is critical to protect local businesses amid intensifying competition, rising costs and global market volatility, said the Malaysian Employers Federation (MEF).

President Datuk Dr Syed Hussain Syed Husman said MSMEs are not peripheral players but are core economic drivers that sustain domestic demand, anchor local supply chains and support employment at the community level.

“Targeted and affordable financing is essential to ensure these businesses remain competitive, responsive to market demand and financially resilient,” he said in a statement today.

This was in response to the financing initiatives introduced yesterday by the Ministry of Entrepreneur Development and Cooperatives (KUSKOP), which comprise two special financing schemes totalling RM80 million to strengthen micro-entrepreneurs’ access to financing during the festive season.

The initiatives are the Skim Biaya Ramadan Perniagaan Rakyat (BARAKAT) worth RM50 million in conjunction with Ramadan and Aidilfitri by TEKUN Nasional, and the Special Financing Programme for Chinese-Owned Micro Enterprises (BERKAT) amounting to RM30 million for the Chinese New Year by SME Corp Malaysia.

Syed Hussain also said that festive seasons often place intense pressure on MSMEs due to rising input costs, inventory requirements and cash flow constraints, which, if unaddressed, undermine their ability to compete with larger players and imported alternatives.

Meanwhile, the SME Association Of Malaysia said in a statement that these targeted financing initiatives reflect a clear and practical understanding of the cash-flow pressures, seasonal demand spikes, and working-capital constraints faced by MSMEs across Malaysia.

“At a time when many micro SMEs continue to face thin margins, rising operational costs, higher compliance requirements, and cautious consumer sentiment, the availability of low-cost, short-tenure financing offers immediate and tangible relief.

“This allows traders to focus on meeting festive demand rather than being constrained by short-term liquidity challenges,” it said.

In a separate statement, the Federation of Malay Hawkers and Petty Traders Associations of Malaysia (GPPPKMM) expressed hope that the special financing programmes will be implemented in a comprehensive, transparent and inclusive manner so all petty traders can benefit based on real needs regardless of their background.

“We believe that a fair and balanced approach will strengthen public confidence in government policies as well as instilling harmony and unity among the trading community to ensure the programme’s noble goals are fully achieved,” it said in a statement.

-- BERNAMA