• RM600 million allocated for MSMEs under BNM’s Fund for SMEs 
• Additional RM25 million in matching grants allocated through iTEKAD to assist microentrepreneurs 

Bank Negara Malaysia (BNM) wishes to provide details on the assistance for micro, small and medium enterprises (MSMEs) as announced in the Belanjawan 2024 speech by the Prime Minister and Minister of Finance, YAB Dato’ Seri Anwar bin Ibrahim on 13 October 2023. 

Continuous support under BNM’s Fund for SMEs  

BNM continues to support priority segments of MSMEs to obtain financing at competitive rates. A total of RM600 million from selected facilities under BNM’s Fund for SMEs has been earmarked for four target segments: 

1. RM200 million increase in allocation for the Micro Enterprises Facility (MEF) to further support the financing needs of microentrepreneurs, of which RM50 million will be allocated for low-income microentrepreneurs under the iTEKAD initiative. 
2.  RM200 million under the All Economic Sectors Facility (AES) will be allocated to catalyse the provision of CAKNA 2, a contract financing facility for small contractors (G1-G4) by financial institutions. It aims to support the implementation of small-scale government projects (of contract value less than RM1.5 million). 
3.  RM100 million under the Agrofood Facility (AF) will be allocated to support the national food security agenda by increasing domestic food supply and expanding import capacity. 
4.  RM100 million under the Low Carbon Transition Facility (LCTF) will be allocated to incentivise MSMEs to obtain sustainability and green certification for their business operations. 

Overall, about RM8.4 billion is still available for MSMEs across all financing facilities under the BNM’s Fund for SMEs. These facilities are aligned with efforts to support the involvement of MSMEs in key national initiatives including the New Industrial Master Plan 2030, the National Energy Transition Roadmap and other initiatives under Belanjawan 2024. 

For more information on these and other facilities under BNM’s Fund for SMEs, please visit bnm.gov.my/funds4sme 

Available Balance for Facilities under BNM’s Fund for SMEs  

Measures to crowd in social finance funds and support low-income microentrepreneurs through iTEKAD  

An additional RM25 million in grants will be allocated to support the expansion of the iTEKAD initiative and assist low-income microentrepreneurs. These funds will be matched with social finance funds such as donations (including corporate social responsibility funds), zakat and cash waqf.  

For more information on iTEKAD and other social finance initiatives, please visit bnm.gov.my/social-finance.