PETALING JAYA: The Federation of Malaysian Manufacturing (FMM), formerly known as the Federation of Malaysian Manufacturers, welcomes the BR Prosper-i and SME Bank Success financing initiatives under the Ministry of Entrepreneur and Cooperatives Development (Kuskop), which has a total allocation of RM100 million, aimed at strengthening access to financing for MSMEs, particularly within the Chinese business community.
FMM, however, hopes that this facility can be extended to businesses across all communities, in line with the broader objective of supporting MSME development and inclusivity.
These initiatives by Kuskop are timely and positive, especially given the current volatility in global trade, where access to financing and cash flow remain critical challenges for MSMEs.
“FMM hopes that more such programmes can be rolled out in the future and institutionalised through consistent annual allocations under the national budget, to ensure sustained and far-reaching support for MSME development.
“Equally important is the government’s continued emphasis on inclusive MSME policies, ensuring that no viable business is left behind,“ FMM president Jacob Lee Chor Kok said in a statement.
He said FMM also emphasises the importance of a simplified application process, coupled with swift processing times and transparent approval procedures, to ensure financial assistance reaches targeted MSMEs efficiently.
“The inclusion of guarantee coverage by SJPP or CGC under the financing programme is particularly welcomed, as it addresses one of the key barriers faced by MSMEs, i.e. limited collateral or shorter credit histories.
“By sharing financing risks, the guarantee mechanism enhances confidence among financial institutions, supports broader lending to viable businesses, and enables more MSMEs to access funding that might otherwise be out of reach,“ Lee said.
With about 76% of FMM’s members comprising MSMEs, Lee said, the federation, represents a significant segment of Malaysia’s manufacturing and entrepreneurial base.
He said FMM strongly supports financing initiatives that enable manufacturers to scale up, move up the value chain and remain globally competitive, in line with FMM’s long-standing vision of moving Malaysian industry from cost-based competition to capability-based competition.
“Such initiatives, when complemented by broader national industrial strategies, will contribute meaningfully to strengthening the sustainability and resilience of Malaysia’s MSME ecosystem.”
