Kuala Lumpur:Businesses, including micro, small, and medium enterprises (MSMEs) and mid-tier companies, are expected to benefit from RM57 billion in loan and financing guarantees under Budget 2027. This is an increase from RM50 billion in 2026, as stated by economist and policy specialist Professor Geoffrey Williams.

According to BERNAMA News Agency, the financing package includes RM6.6 billion in microfinancing through institutions such as Amanah Ikhtiar Malaysia, TEKUN Nasional, and Bank Simpanan Nasional. Additionally, RM32 billion in financing guarantees will be provided through Syarikat Jaminan Pembiayaan Perniagaan Bhd and Credit Guarantee Corporation Malaysia Bhd.

Professor Williams explained that the MADANI government structured Budget 2027 around three core pillars improving access to financing, reducing business costs, and expanding market opportunities. Corporate income tax rates for MSMEs have been reduced by up to two percentage points, potentially saving about 300,000 businesses up to RM6,000 annually.

Other measures in the budget include a 50 percent rental discount throughout 2027 for small traders renting premises from Kuala Lumpur City Hall and streamlined government procurement through direct appointments of up to RM200,000 for eligible maintenance and repair works. RM30 million has also been allocated to help 4,000 MSMEs adopt artificial intelligence and automation.

Initiatives such as matching grants for first-time halal certification and an expanded RM7.5 billion in procurement opportunities for Bumiputera G1 to G4 contractors highlight a comprehensive "whole-of-government" approach. Budget 2027 also includes a RM1.028 billion allocation for KUSKOP, targeted export funding via Bank Pembangunan Malaysia Bhd and the Malaysia External Trade Development Corporation, and emphasizes fair digital trade through the proposed E-Commerce Bill, laying a strong foundation for Malaysia's economic future.