Minister Steven Sim announces a 6-month flood moratorium and the ABCD strategy for MSME growth
PUTRAJAYA: On his first day in office, Steven Sim, the new Minister of Entrepreneur Development and Cooperatives, wasted no time by unveiling urgent support for flood-affected businesses while laying out a clear agenda to strengthen Malaysia’s micro, small and medium enterprises (PMKS).
Sim, who reported for duty today alongside Deputy Minister Datuk Mohamad Alamin, announced a six-month interest-free moratorium for PMKS and cooperatives affected by floods.
The moratorium will cover financing from seven agencies under the ministry, including Suruhanjaya Koperasi Malaysia, SME Corp, Tekun Nasional, Bank Rakyat, SME Bank, Pernas, and Amanah Ikhtiar Malaysia.
He said applicants affected by the floods are advised to contact the respective financing agencies for details on the moratorium, which is immediately available to eligible PMKS and cooperatives nationwide.
Beyond immediate relief, Sim outlined a focused strategy to boost productivity, simplify bureaucracy, improve access to capital, and expand market reach, which he called the ABCD strategy.
The acronym stands for Accelerate Productivity, Bureaucracy Reduction, Capital Accessibility, and Develop Market Access, reflecting the ministry’s goal to tackle core business challenges at their root.
Sim also announced plans to increase financing allocations for different communities.
“The Tekun Bumiputera Fund will rise from RM300 million this year to RM500 million in 2026.
“Financing for Indian entrepreneurs under the Skim Pembiayaan Usahawan Masyarakat India scheme will increase from RM30 million to RM50 million, while a new RM50 million scheme for Chinese PMKS will be launched in January next year,” he said.
He directed senior management to review internal procedures, reduce processing times and fees, and create a more business-friendly environment for PMKS and cooperatives.
Sim emphasised that these measures — cash flow relief, capital injection, and reduced bureaucracy — directly reflect the ABCD strategy, aimed at ensuring Malaysian businesses remain resilient, competitive, and inclusive.
Under the mandate given by Prime Minister Datuk Seri Anwar Ibrahim, Sim said the ministry will continue to prioritise empowering PMKS and cooperative movements nationwide, taking into account the challenges posed by both domestic and global economic conditions.
