Kuala lumpur: A special RM5 billion financing support under Bank Negara Malaysia, announced by Prime Minister Datuk Seri Anwar Ibrahim, will help micro, small, and medium enterprises (MSMEs) weather the global supply crisis. Entrepreneur and Cooperatives Development Minister Steven Sim expressed appreciation for the MADANI Government's initiative, highlighting its significance for the MSMEs sector.

According to BERNAMA News Agency, the recent announcement adds to a series of support measures for MSMEs, which now include RM5 billion in financing guarantees through the Syarikat Jaminan Pembiayaan Perniagaan (SJPP) scheme. This recent infusion brings the overall MSME support package to a total of RM10 billion.

Minister Sim emphasized the importance of this financial boost, noting that MSMEs contribute nearly 40 percent to the GDP and provide employment to over 8.1 million people. He described the financial support as an 'economic shield' for local businesses, enabling them to survive economic fluctuations and remain competitive globally.

Furthermore, Sim outlined the government's strategy to combine its support with the entrepreneurship spirit of MSMEs. This approach aims to maintain MSMEs as a cornerstone of the economy, ensuring stability in supply chains and the wellbeing of the public. The Entrepreneur and Cooperatives Development Ministry plans to implement the ABCD strategy, focusing on boosting productivity, reducing bureaucratic hurdles, improving funding access, and expanding market reach.

On Tuesday, Prime Minister Anwar, doubling as the Finance Minister, detailed the RM5 billion facility for banks to aid affected SMEs. This move complements the existing SJPP guarantees, solidifying the total assistance available to RM10 billion.