Kuala Lumpur:financing facilities and guarantees for micro, small, and medium enterprises (MSMEs) as well as mid-tier companies have increased to RM57 billion under Budget 2027, compared to RM50 billion last year. This rise aligns with the government's initiative to designate 2027 as Malaysia's Year of MSMEs.
According to BERNAMA News Agency, Entrepreneur Development and Cooperatives Minister Steven Sim highlighted the budget's focus on facilitating access to financing, reducing business costs, and expanding market opportunities. To alleviate business expenses, the income tax rate for MSMEs has been reduced by up to two percentage points, allowing approximately 300,000 MSMEs to benefit from tax savings of up to RM6,000 annually.
The government has allocated RM1 billion in export financing through Bank Pembangunan Malaysia Berhad and RM60 million via the Malaysia External Trade Development Corporation to support local companies in accessing international markets. Additionally, MSMEs with annual sales below RM50 million are exempt from the minimum wage increase from RM1,700 to RM2,000 per month, starting June 2027.
Sim also mentioned that the Ministry of Entrepreneur Development and Cooperatives received a 2027 allocation of RM1.028 billion to enhance entrepreneurial and cooperative development through the ABCD framework, focusing on productivity shift, simplified bureaucracy, access to capital, and market access.
For productivity enhancement, RM30 million has been designated to aid 4,000 MSMEs in adopting artificial intelligence and automation, alongside RM25 billion in domestic investments by government-linked investment companies to boost high-value industries. To simplify bureaucracy, direct appointments for procurements up to RM200,000 and quotations up to RM3 million for maintenance works have been approved. A 50 percent rental discount throughout 2027 will benefit over 10,000 traders at Kuala Lumpur City Hall premises.
In terms of capital access, RM6.6 billion is allocated for microfinancing, while RM32 billion in financing guarantees through Syarikat Jaminan Pembiayaan Perniagaan Berhad and Credit Guarantee Corporation Malaysia Berhad, plus an additional RM5 billion from Bank Negara Malaysia, aim to assist businesses, including SMEs affected by the conflict in West Asia.
To expand market access, RM7.5 billion in procurement opportunities is provided for Bumiputera contractors in Grades G1 to G4, nearly RM700 million for small-scale projects by local authorities, and matching grants of up to RM5,000 are available to help MSMEs obtain halal certification for the first time.
Sim emphasized the importance of a whole-of-government approach to ensure entrepreneurs can access suitable facilities through collaboration among ministries and agencies.