Malaysia Allocates $880M for MSMEs

Malaysia’s Central Bank (Bank Negara Malaysia, BNM) has launched a major initiative, allocating $880 million to support micro, small, and medium enterprises (MSMEs) in digitalization, automation, and sustainable practices. This strategic move is set to drive innovation and growth across key sectors in line with national priorities.

• $880 Million Allocation: BNM is investing MYR 3.8 billion ($880M) to accelerate MSMEs' adoption of digitalization, automation, and sustainable business practices.

• Digitalization and Automation Support: Through the SME Automation and Digitalization Facility, the fund aims to enhance productivity and modernize MSMEs by integrating new technologies.

• Support for Microentrepreneurs: A MYR 15 million ($3.49M) grant will be allocated to the iTEKAD program, which will provide seed capital matched with social finance contributions like zakat and CSR funds. It also includes a MYR 5 million ($1.16M) grant to subsidize takaful contributions, providing financial protection for small traders and delivery riders.

• Islamic Finance Innovation: A MYR 100 million ($23.27M) matching fund will support risk-sharing financing in climate and food security, encouraging innovative Islamic finance practices.

Bank Negara Malaysia’s support will empower small businesses, boost productivity, and contribute to Malaysia’s economic growth.