Kuala lumpur: The Ministry of Entrepreneur Development and Cooperatives (KUSKOP), through its agencies, has approved RM25.27 billion in financing for 847,653 entrepreneurs and cooperatives across the nation between 2024 and May 31, 2026. The initiative aims to bolster micro, small, and medium enterprises (MSMEs) and cooperatives by enhancing their working capital, business capacity, and infrastructure.
According to BERNAMA News Agency, Deputy Minister Datuk Mohamad Alamin highlighted that the effectiveness of these financing schemes is evaluated based on entrepreneurs' repayment performance. This assessment reflects their ability to consistently generate income and manage cash flow efficiently. The financial support not only meets the capital requirements of businesses but also contributes to their resilience and long-term sustainability.
During a question-and-answer session in the Dewan Rakyat, Mohamad addressed inquiries from Rodiyah Sapiee (GPS-Batang Sadong) regarding the effectiveness of financing schemes under the ministry's agencies in aiding MSMEs' growth. He also discussed the number of entrepreneurs who have successfully increased their business revenue since 2024.
Mohamad elaborated that the ministry does not prescribe an overall average non-performing financing (NPF) target for all its agencies. Each agency sets its own target, with some aiming to maintain their average NPF below 10 percent. As of May 2026, TEKUN Nasional recorded an average NPF rate of 9.69 percent, while SME Bank and Bank Rakyat had rates of 10.49 percent and 1.93 percent, respectively. Amanah Ikhtiar Malaysia (AIM) reported an outstanding NPF rate of just 0.01 percent.
He emphasized the success of the alternative peer-to-peer (P2P) financing initiative offered by SME Corp. This initiative has provided MSMEs with fast, flexible, and largely collateral-free access to financing through digital platforms. Between January and May 2026, RM18.5 million in alternative financing was approved for 39 MSMEs, with the approval period reduced to seven days or less, down from 21 days previously.
Mohamad cited SME Corp's MSME Survey 2025, which found that the primary purposes of this alternative financing were to fund working capital (74.2 percent), asset purchases (39.1 percent), and business expansion or the opening of new branches (28.9 percent).
In response to a supplementary question from Rodiyah about ensuring the competitiveness of rural entrepreneurs, including those in Sabah and Sarawak, Mohamad stated that the ministry has implemented a comprehensive approach. This includes basic entrepreneurship seminars, digitalization guidance, assistance with halal certification, and strategic collaboration with TikTok Shop Malaysia to boost entrepreneurs' sales.
Addressing a supplementary question from Datuk Dr Ahmad Yunus Hairi (PN-Kuala Langat) about support for entrepreneurs from the Orang Asli community, particularly the Mah Meri community on Pulau Carey, Selangor, Mohamad affirmed the ministry's commitment to strengthening talent development and entrepreneurship within the community to commercialize their products more aggressively.