KUSKOP Accelerates Distribution of Additional RM1 Billion in Microcredit Funds

Malaysia’s Ministry of Entrepreneur Development and Cooperatives is moving to distribute an additional RM1 billion in microcredit financing more quickly to micro, small and medium enterprises.

Minister Steven Sim Chee Keong said the ministry would prioritize getting the money to its intended recipients within an appropriate timeframe. The additional allocation raises total microcredit funds available in 2026 from RM5 billion to RM6 billion.

The financing will be distributed through three agencies under the ministry: Bank Rakyat, Amanah Ikhtiar Malaysia and TEKUN Nasional. Sim said microcredit agencies often offer smaller traders and businesses more accessible conditions and simpler processes than other forms of financing.

“

Microcredit not only provides financial support, but microcredit agencies are usually friendlier to micro and small traders in terms of requirements, facilitating the process and so on.

The government announced the additional facility to help small businesses facing cost pressures and to support business expansion, Prime Minister Anwar Ibrahim was reported as saying. Sim also pointed to RM200 million grants for equipment purchases and another RM200 million fund for business goods. Increased RON95 and diesel quotas are expected to help traders who regularly use vehicles for their operations.

He said raising the e-invoice threshold from RM1 million to RM3 million could benefit more than one million small and medium enterprises, based on Finance Ministry data.

“

We are working to speed up the process so that the money or resources promised can be distributed.