The government allocates RM30 billion for business financing and RM20 billion for housing guarantees, with NPL rates under control at around 2%.
PUTRAJAYA: The government is confident its expanded credit guarantee schemes will drive small and medium enterprise (SME) growth and investments while maintaining fiscal discipline.
Finance Minister II Datuk Seri Amir Hamzah Azizan said the non-performing loan (NPL) rate for guarantees under Syarikat Jaminan Pembiayaan Perniagaan Bhd (SJPP) remains low at around 2%.
He stated this reflects a manageable risk level despite significantly increased guarantee allocations under Budget 2026.
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Amir Hamzah emphasised that loan screening by financial institutions and scheme implementers ensures fiscal risks are controlled.
“Loan screening is carried out by financial institutions and scheme implementers, and so far the non-performing loan (NPL) rate has remained low, around two per cent, which is at a manageable level,” he said.
The government has allocated RM30 billion in financing guarantees through the Business Financing Guarantee Scheme to drive SME growth.
Of this total, RM10 billion is specifically allocated for bumiputera entrepreneurs.
Financing guarantees for halal SMEs have been increased to RM2 billion to support the sector’s development.
Export-oriented mid-tier companies and high-value industrial sector businesses have each been allocated RM5 billion in guarantees.
Amir Hamzah noted that proper loan screening and support for SME financial management remain crucial despite the increased allocation.
He attributed last year’s lower scheme uptake to a challenging global economy and cautious investor confidence.
The minister said mid-tier companies were reintroduced this year following a larger allocation.
For housing, the government is continuing the Housing Credit Guarantee Scheme (SJKP) with RM20 billion in guarantees.
The scheme aims to help over 80,000 first-time homebuyers, including those with irregular incomes.
Syarikat Jaminan Kredit Perumahan Bhd has approved guarantees for over 104,000 applications totalling RM25 billion since 2007.
In 2025 alone, the scheme benefited more than 27,000 applications with RM7 billion in approved financing.
From 2023 to 2025, a total of 88,000 first-time buyers secured financing worth RM22.8 billion.
Amir Hamzah said Malaysia’s GDP growth target for 2026 remains stable at 4.0% to 4.5%.
He noted the International Monetary Fund has revised its global economic forecast upwards, reflecting better-than-expected resilience.
This economic stability provides confidence and predictability for investors to continue investing in Malaysia. – Bernama
