KUSKOP Proposes Action Plan To Strengthen Support For SMEs

KUALA LUMPUR, April 7 (Bernama) -- Minister of Entrepreneur Development and Cooperatives Steven Sim Chee Keong has proposed a 10-point action plan to strengthen support for small and medium enterprises (SMEs) by fostering closer collaboration between the government and banking institutions, in response to global uncertainty and rising energy costs.

In a statement today, the Ministry of Entrepreneur Development and Cooperatives (KUSKOP) said Sim presented the plan during a recent engagement session with 16 top management representatives from the Association of Banks in Malaysia (ABM), led by its chairman, Datuk Seri Khairussaleh Ramli, who is also Malayan Banking Bhd’s (Maybank) president and group executive officer.

“The engagement session focused on strengthening coordination between the banking sector and the government in supporting Malaysia’s SMEs amid ongoing global uncertainties and rising energy-related cost pressures,” it said.

According to KUSKOP, the action plan includes prioritising core business support by ensuring continued access to working capital financing, noting that 43 per cent of SME loans are for operational needs, helping businesses survive amid rising energy costs.

Other measures include adopting more inclusive and practical assessment criteria for SMEs to improve access to financing; speeding up loan processing and approval times to ensure support reaches businesses more quickly; and increasing flexibility during uncertain periods through loan repayment restructuring and rescheduling, and, where necessary, case-by-case repayment moratoriums.

Additionally, the plan will also strengthen cooperation between commercial banks, KUSKOP and development financial institutions (DFIs) through integrated financing to optimise resources and maximise impact, and adopting a ‘no wrong door’ policy approach to refer micro, small and medium enterprises (MSMEs) to products and services at other financial institutions including DFIs if the originating institution does not have a suitable product.

“Other points in the plan include intensifying collaboration on capacity-building programs to strengthen SME capabilities and resilience; stepping up promotion and rollout of SME-focused financial products throughout the year.

“Collaborating with SME Corp to enhance the value and recognition of SME accreditation status; and working with KUSKOP under the PowerUp10k initiative to invigorate strategies for scaling grassroots businesses,” it added.

Meanwhile, Sim also expressed appreciation to banking institutions for their support of the proposals put forward and emphasised the importance of a whole-ecosystem approach in assisting MSMEs.

“Continuing collaboration between the government and financial institutions is critical to ensure Malaysian businesses remain resilient, competitive and ready for growth despite global challenges,” the minister said.

-- BERNAMA