• RM3.8 billion to support digitalisation and automation, sustainable and low carbon practices, and agrofood production
• Increase in financing limit for Micro Finance Scheme (Skim Pembiayaan Mikro) to RM100,000
• RM20 million for iTEKAD’s seed capital matching grant and takaful protection
• RM30 Perlindungan Tenang Voucher for Sumbangan Tunai Rahmah recipients
• RM100 million matching fund for Islamic finance innovation
• Tabling of the Consumer Credit Act

Bank Negara Malaysia (BNM) wishes to share more details on the initiatives by BNM and the financial industry from the Belanjawan 2025 speech by the Prime Minister and Minister of Finance, YAB Dato’ Seri Anwar bin Ibrahim today.

Holistic Financial Support for MSMEs
BNM continues to help micro, small and medium enterprises (MSMEs) with affordable financing. This includes RM3.8 billion:

• to support digitalisation and automation via the SME Automation and Digitalisation Facility;
• to embrace sustainable and low carbon practices via the Low Carbon Transition Facility and High Tech & Green Facility; and
• for agrofood production via the Agrofood Facility.

Currently, more than RM7 billion is available for MSMEs under BNM’s Fund for SMEs. The funds provide continued funding to MSMEs for targeted purposes, segments and strategic sectors in line with national priorities. For more information, please visit bnm.gov.my/funds4sme

In addition, the financing limit for Micro Finance Scheme (Skim Pembiayaan Mikro, SPM) by financial institutions has been increased from RM50,000 to RM100,000.  This is complemented by the Government’s decision to increase the stamp duty exemption on the SPM’s instrument of agreement for an amount up to RM100,000.

iTEKAD: Matching Grant and Takaful Protection
A grant of RM15 million will be allocated towards the seed capital component for iTEKAD. The grant will be matched with social finance funds e.g. donations, zakat and corporate social responsibility funds.

The Government is also allocating a RM5 million grant through iTEKAD to subsidise microentrepreneurs’ annual takaful contributions. This will provide financial protection to microentrepreneurs against risks to their livelihoods from events such as accidents and natural disasters. This grant will be matched with contributions by takaful operators. This initiative will benefit small traders, delivery riders and Inisiatif Pendapatan Rakyat participants.

Perlindungan Tenang Voucher
Perlindungan Tenang products provide simple and affordable protection for the underserved, especially for low-income groups. Perlindungan Tenang Vouchers of RM30 will be provided to the Sumbangan Tunai Rahmah recipients. This helps them purchase affordable microinsurance and microtakaful products from participating licensed insurers and takaful operators. For more information on Perlindungan Tenang, please visit www.mycoverage.my/perlindungan_tenang

RM100 million matching fund for Islamic finance innovation
To spur the development of innovation in Islamic finance involving risk-sharing instruments (e.g. musyarakah structure), RM100 million matching fund will be provided by the Government. This fund will be used to support risk-sharing financing in the areas of climate and food security. The fund will be utilised to match funding from the Islamic financial institutions or other private sector investors, as part of the efforts to encourage innovation and increase familiarity to risk-sharing instruments.

The announcement is in line with BNM’s efforts to facilitate diverse application of Shariah contracts including risk-sharing contracts.  BNM is also undertaking a holistic review of the standards on Shariah contracts to simplify the framework’s design and policy approach to spur innovation while ensuring effective application of Shariah principles.

Tabling of the Consumer Credit Act
BNM welcomes the announcement by YAB Prime Minister for the tabling of the Consumer Credit Act (CCA) in the next Parliamentary sitting. With the passing of this CCA, the Consumer Credit Commission (CCC) will be established as the new authority regulating non-bank credit providers and credit service providers in Malaysia. Currently, the Consumer Credit Oversight Board Task Force (CCOB) – led by the MOF, BNM and Securities Commission Malaysia – is tasked to drive the finalisation of the CCA together with relevant ministries and agencies.

The CCA will address overlaps in responsibilities between regulatory authorities and reduce coverage gaps in the supervision of consumer credit providers.

The CCC will regulate and supervise a range of entities currently not subject to any regulatory authority in Malaysia. This includes ‘Buy Now Pay Later' (BNPL) companies, non-bank factoring and leasing companies, impaired loan buyers, debt collection agencies, and debt counselling and management agencies.

Bank Negara Malaysia

18 October 2024