Kuala Lumpur: SME Corporation Malaysia (SME Corp) spent development grants beyond its allocated funds, resulting in a RM7.96 million debit balance.

According to BERNAMA News Agency, the Auditor-General’s Report 1/2025 stated that SME Corp recorded the debit balance for deferred grants under the Bumiputera Enterprise Enhancement Programme (BEEP) Plus at the end of the 2023 financial year. The report highlighted that the deferred grants disbursed totaled RM73.81 million, surpassing the RM65.85 million originally allocated under the 11th Malaysia Plan (11MP).

The report further indicated that SME Corp did not secure approval from the Ministry of Finance to exceed the allocated amount. It urged SME Corp to strengthen its grant management by ensuring funds are accounted for under programs approved by the Ministry of Finance to ensure they are used as intended.

Additionally, the audit report emphasized that SME Corp must ensure any uncommitted development grants from the 10th and 11th Malaysia Plans are returned to the Ministry of Finance if the Notice of Change is not approved.