GEORGE TOWN, May 10 — Malaysia’s micro, small and medium enterprises (MSMEs) are struggling to access government financing despite a total RM60 billion allocation.
As funds remain dispersed across multiple ministries and agencies, says Entrepreneur and Cooperatives Minister Steven Sim Chee Keong.
He said RM50 billion has been allocated under Budget 2026, with an additional RM10 billion announced recently.
But entrepreneurs continue to face difficulties identifying suitable grants and assistance due to fragmentation involving 50 to 60 agencies nationwide.
Sim said the lack of a coordinated system has created confusion among small business owners, many of whom are unsure where to apply or what programmes are available.
He noted that while substantial funding exists, accessibility remains the main challenge rather than the availability of capital itself.
He added that the government is working to strengthen coordination and improve access to financing by engaging banks, private capital firms and SME associations.
To broaden funding channels beyond traditional government schemes. However, he stressed that business readiness remains a key issue.
As some SMEs face constraints in governance structures, documentation, cash flow management and reluctance to accept equity participation.
Sim also highlighted that many Malaysian SMEs are family-run enterprises, which provide strong cultural and operational foundations.
But may require improved governance and scalability to attract institutional investment. He said the focus going forward is not only on increasing funding.
But also on ensuring SMEs are prepared to utilise capital effectively to enhance competitiveness and drive long-term industrial growth.
