Malaysia will raise total loan facilities and financing guarantees to RM57 billion in 2027, up from RM50 billion this year. Prime Minister and Finance Minister Anwar Ibrahim announced the increase when he tabled Budget 2027 in the Dewan Rakyat on 9 October 2026.

The Budget 2027 SME financing measures come with a separate increase in microfinancing to RM6.6 billion, channelled through Amanah Ikhtiar Malaysia (AIM), TEKUN Nasional and Bank Simpanan Nasional (BSN).

Anwar said micro, small, and medium enterprises (MSMEs) make up almost all businesses in Malaysia. They contribute about 40% of the economy and employ around 8 million people, or roughly half the national workforce.

Syarikat Jaminan Pembiayaan Perniagaan (SJPP) and Credit Guarantee Corporation Malaysia (CGC) will provide financing guarantees of up to RM32 billion next year.

Of this, RM1 billion in SJPP guarantees will go towards supporting local companies that want to expand through mergers and acquisitions (M&A).

Bank Negara Malaysia (BNM) has also agreed to add RM5 billion to a financing facility it set up for SMEs affected by the conflict in West Asia.

The central bank first made up to RM5 billion available under the facility, which it launched as the SME Stabilisation Relief Facility.

Anwar said microfinancing would rise to RM6.6 billion in 2027, describing it as one way to help small business owners increase their income.

AIM will have RM3 billion in financing available next year. 7 billion in microfinancing, including benefiting the youth and gig workers.

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