Some 270,000 micro, small, and medium enterprises (MSMEs) across Malaysia have benefited from a government allocation of RM10 billion, according to Steven Sim, the Minister of Entrepreneur Development and Cooperatives.

Speaking at the opening of the Hebatkan Perniagaan Malaysia Carnival (HPPC) in Batu Kawan, Penang, Sim highlighted that the ministry plans to channel an additional RM5 billion in financing and support to MSMEs by the end of the year. He noted that in Penang alone, approximately RM760 million has been distributed to around 6,000 entrepreneurs over the past eight months.

The government increased its overall allocation for MSMEs from RM50 billion to RM60 billion in the 2026 budget. For the 2027 budget, the ministry has submitted proposals to the Finance Ministry focusing on three priorities: higher funding for MSMEs and cooperatives, lowering business costs, and enhancing the efficiency of government services.

Sim emphasized the importance of controlling local business expenses, especially in the face of volatile global oil prices. Measures under consideration include simplifying administrative procedures, reducing processing times, and cutting fees, charges, and taxes where feasible.

“We want faster processing of licences, permits, and financing because every day represents an opportunity and lost revenue if businesses have to wait,” Sim said. He cited recent improvements in the processing times for Tekun financing applications, which have been shortened from 30-40 days to seven days. For loans below RM20,000, approval is targeted within 24 hours.

The minister stressed that government efforts are aimed not only at larger enterprises but also at supporting smaller businesses critical to the economy.

The HPPC, now in its third edition following events in Johor and Melaka, is expected to attract about 100,000 visitors over two days and generate approximately RM25 million in sales and business-matching opportunities. The ministry plans to expand the carnival to other regions, including Sabah.