Government to Expedite RM1 Billion Additional Microcredit for MSMEs

By the Editorial Team · Tuesday, September 1, 2026

The Malaysian government will increase microcredit funding for MSMEs by RM1 billion in 2026, bringing the total to RM6 billion to support faster disbursement through agencies like Amanah Ikhtiar Malaysia and Tekun Nasional. This boost, alongside raising the e-invoice exemption threshold from RM1 million to RM3 million, aims to ease financial burdens and streamline compliance for over one million small businesses.

The Malaysian government is set to accelerate the distribution of an additional RM1 billion in microcredit funding to support micro, small, and medium enterprises (MSMEs) this year, according to the Entrepreneur Development and Cooperatives Minister Steven Sim. This new allocation raises the total microcredit funding for 2026 to RM6 billion, up from the initial RM5 billion.

Sim announced the plan following Prime Minister and Finance Minister Datuk Seri Anwar Ibrahim’s recent declaration of the extra RM1 billion in microfinancing facilities. The additional funds will be channeled through agencies including Amanah Ikhtiar Malaysia and Tekun Nasional. Efforts will focus on expediting the disbursement of these resources to help MSMEs recover and grow.

The minister made the remarks during the launch of the Business Malaysia Hub at the Malaysia Agriculture, Horticulture, and Agrotourism Exhibition (Maha) 2026 held at the Malaysia Agro Exposition Park in Serdang. Anwar Ibrahim also revealed another measure to ease the financial burden on small businesses: raising the e-invoice exemption threshold from RM1 million to RM3 million annually. This policy adjustment is expected to benefit more than one million MSMEs by simplifying compliance and reducing administrative costs.

Sim emphasized that the additional microcredit funding is vital not only for providing financial assistance but also because the involved agencies tend to offer more flexible requirements and streamlined processes tailored for smaller enterprises. This aligns with the government’s broader objective of strengthening the MSME sector, which is seen as a significant contributor to the country’s economy.

In addition to financial support measures, Sim highlighted the recent increase in RON95 petrol and diesel quotas, describing it as a timely “Merdeka gift” that could help ease operational costs for MSMEs.

Meanwhile, the ministry has set a target of RM500,000 in sales at its pavilion, HPMKUSKOP@Maha 2026, during the exhibition. The pavilion features 66 companies, including cooperatives and MSMEs, showcasing their products and services at the event. Sim praised the Maha 2026 exhibition as a meaningful platform and congratulated the Agriculture and Food Security Ministry under Datuk Seri Mohamad Sabu for the event’s success.

This article was reported by synthesizing coverage from multiple independent news outlets to present a balanced, unbiased account. Read about our editorial standards. Spotted an error? Let us know.