Credit Guarantees, Regulatory Relief Support MSMEs Amid Energy Crisis

By Siti Noor Afera Abu

KUALA LUMPUR, April 20 (Bernama) -- The Malaysian government has moved swiftly to roll out targeted assistance measures to help micro, small and medium-sized enterprises (MSMEs) sustain operations amid a global energy crisis triggered by conflict in West Asia, as authorities acknowledge mounting pressures on small businesses.

Bank Muamalat Malaysia Bhd chief economist Dr Mohd Afzanizam Abdul Rashid said higher business costs and tight cash flow could constrain access to credit, as risk appetite among financial institutions is expected to weaken significantly.

“As such, measures such as credit guarantees from Syarikat Jaminan Pembiayaan Perniagaan Bhd (SJPP) would improve access to credit among SMEs, as they may need to restructure and reschedule existing financial obligations.

“Relaxation in e-invoicing as well as exemptions from import duties are meant to reduce regulatory costs. All this should help to minimise the impact on businesses, especially in respect of profitability,” he told Bernama.

SJPP, wholly owned by the Minister of Finance (Incorporated), manages and administers various government guarantee schemes to bridge financing gaps faced by SMEs, particularly those lacking sufficient collateral or track record to secure bank loans.

Earlier, Prime Minister Datuk Seri Anwar Ibrahim announced a RM5 billion guarantee facility under SJPP, with financing coverage raised to up to 80 per cent from 70 per cent previously, and the guarantee tenure extended to up to 10 years from seven years.

The facility will support affected sectors, including construction, agriculture and agri-food, logistics, transportation and tourism.

Anwar also said the government will grant an additional 12-month transition period for the implementation of e-invoicing Phase Four until Dec 31, 2027, for businesses with annual sales between RM1 million and RM5 million, including permission to issue consolidated e-invoices without penalties during the period.

The government is also considering, on an interim basis, exemptions from import duty and sales tax for the re-importation of Malaysian-made goods that were unable to complete the export process due to conflict-related disruptions, until Dec 31 this year.

The Small and Medium Enterprises Association (Samenta) said the SJPP guarantee allocation, with 80 per cent coverage and a 12-month e-invoicing transition, provides critical liquidity and administrative relief.

National president Datuk William Ng said the association also supports cooperation between SJPP and banks to facilitate targeted restructuring and rescheduling of loans to ease business cash flow.

“This targeted approach is far better than a blanket loan moratorium, which would only serve to prolong loan durations and total interest payments for SMEs, including those who may not be critically impacted by the energy crisis,” he said.

He added that Samenta has proposed that the government further strengthen SME resilience by prioritising the energy transition and circular economy agenda.

Beyond working capital support, he said the association is calling for a portion of SJPP guarantees to be allocated specifically to help SMEs transition towards renewable energy adoption.

“This includes low-interest financing for solar photovoltaic (PV) installations and energy-efficient machinery to permanently lower overheads and reduce dependency on volatile global fuel prices,” he said.

He added that Samenta remains committed to working closely with the Ministry of Finance, the Ministry of Entrepreneur Development and Co-operatives, and relevant agencies to ensure assistance is delivered in a targeted manner to SMEs that need it most, in line with the Madani economy framework.

-- BERNAMA