The Ministry of Entrepreneur Development and Cooperatives approved RM25.27 billion in financing for 847,653 entrepreneurs and cooperatives since 2024
KUALA LUMPUR: The Ministry of Entrepreneur Development and Cooperatives (KUSKOP), through its agencies, approved RM25.27 billion in financing for 847,653 entrepreneurs and cooperatives nationwide between 2024 and May 31, 2026.
Its Deputy Minister Datuk Mohamad Alamin said the funding was aimed at helping micro, small and medium enterprises (MSMEs) and cooperatives strengthen their working capital, expand their business capacity, and upgrade their business premises and equipment.
He said the effectiveness of the financing schemes was assessed directly through entrepreneurs’ repayment performance, which reflected their ability to generate income consistently and manage cash flow effectively.
“This shows that the financing provided not only helps meet businesses’ capital requirements, but also contributes to the resilience and long-term sustainability of entrepreneurs’ businesses,” he said during the question-and-answer session in the Dewan Rakyat today.
He was responding to a question from Rodiyah Sapiee (GPS-Batang Sadong), who asked about the effectiveness of financing schemes under the ministry’s agencies in helping MSMEs grow, as well as the number of entrepreneurs who have successfully increased their business revenue since 2024.
Mohamad explained that the ministry does not set an overall average non-performing financing (NPF) target for all its agencies. Instead, each agency establishes and measures its own target, with some aiming to keep their average NPF below 10 per cent.
“As of May 2026, National Entrepreneurial Group Economic Fund (TEKUN Nasional) recorded an average NPF rate of 9.69 per cent, while SME Bank and Bank Rakyat registered 10.49 per cent and 1.93 per cent, respectively. Amanah Ikhtiar Malaysia (AIM) recorded an outstanding NPF rate of just 0.01 per cent,” he said.
He said the alternative peer-to-peer (P2P) financing initiative offered by SME Corp had also proven highly effective in providing MSMEs with fast, flexible and largely collateral-free access to financing through digital platforms.
Between January and May 2026, alternative financing amounting to RM18.5 million was approved for 39 MSMEs, with the approval period shortened to seven days or less, compared with 21 days previously.
“Based on SME Corp’s MSME Survey 2025, the primary purpose of this alternative financing was to fund working capital (74.2 per cent), asset purchases (39.1 per cent), and business expansion or the opening of new branches (28.9 per cent),” he said.
Responding to a supplementary question from Rodiyah on follow-up measures to ensure rural entrepreneurs, including those in Sabah and Sarawak, remain competitive, he said the ministry had adopted a comprehensive approach through basic entrepreneurship seminars, digitalisation guidance, assistance with halal certification, and strategic collaboration with TikTok Shop Malaysia to help boost entrepreneurs’ sales.
Meanwhile, in reply to a supplementary question from Datuk Dr Ahmad Yunus Hairi (PN-Kuala Langat) on support for entrepreneurs from the Orang Asli community, particularly those involved in tourism and handicrafts such as the Mah Meri community on Pulau Carey, Selangor, he said the ministry was committed to strengthening talent development and entrepreneurship within the community so that their products could be commercialised more aggressively.
