The government’s RM5 billion guarantee facility aims to strengthen MSME exporters’ working capital and sustain trade momentum during current economic challenges.
KUALA LUMPUR: The government’s RM5 billion financial guarantee initiative for the micro, small and medium enterprises (MSMEs) is expected to provide a significant boost to sector, particularly exporters, by strengthening their working capital and sustaining trade momentum amid current cost pressures.
Malaysia External Trade Development Corporation (MATRADE) chairman Datuk Seri Reezal Merican Naina Merican said sufficient financing access is critical for export-oriented companies, as working capital remained a key requirement in maintaining operations and fulfilling international orders.
He said the newly announced RM5 billion facility would have a meaningful impact on MSMEs compared with smaller financing allocations previously discussed, which were seen as insufficient to address the scale of current challenges.
“The RM5 billion will help MSMEs in terms of financing their capital. For a company that is involved in export, the most important thing is working capital. So with RM5 billion in financing, I think it will give a huge impact to MSMEs,” he told a media briefing on Malaysia’s first quarter 2026 trade performance here today.
Reezal Merican noted that in the present economic environment, continued spending is essential to avoid a contraction in business activity, stressing that companies should maintain operational momentum while ensuring better cost management.
“At the same time, efforts must focus on reducing leakages to ensure that financial resources are utilised efficiently and effectively,” he said.
He added that the financing support is timely in helping MSMEs navigate ongoing pressures while preserving Malaysia’s export performance trajectory.
On Monday, Prime Minister Datuk Seri Anwar Ibrahim announced several measures to help MSMEs sustain operations amid the energy supply crisis and West Asia conflict, which have raised operating costs and disrupted supply chains.
A key measure is the RM5 billion guarantee facility under Syarikat Jaminan Pembiayaan Perniagaan (SJPP), with financing coverage increased to up to 80 per cent from 70 per cent previously, and the guarantee tenure extended to up to 10 years from seven years.
Today, he announced further assistance in the form of special facilities totalling RM5 billion under Bank Negara Malaysia to assist MSMEs.
