Malaysia Central Bank Boosts SME Funding

The Malaysian central bank will provide an additional 2.5 billion ringgit (approximately 620 million U.S. dollars) to support small and medium-sized enterprises (SMEs) across the country, Azernews reports, citing foreign media.

Bank Negara Malaysia (BNM) said in a statement on Tuesday that the new funding will focus on first-time borrowers, helping them gain access to much-needed capital to grow their businesses.

So far, BNM has made 32.4 billion ringgit available in concessional financing through participating financial institutions, targeting viable micro and small enterprises that face challenges in securing traditional financing. With the new injection, the total allocation under BNM's SME fund rises to 34.9 billion ringgit.

Looking ahead, BNM plans to transition toward guarantee-based support, aiming to provide guaranteed financing totaling 10 billion ringgit. This approach is expected to reduce risk for lenders while expanding access for SMEs that may otherwise struggle to obtain loans.

Analysts say the move comes at a critical time, as Malaysian SMEs face rising costs and tighter credit conditions, and could help stimulate innovation, employment, and overall economic growth. By supporting first-time borrowers, BNM hopes to nurture a new generation of entrepreneurs and strengthen the backbone of the country's economy.

(1 ringgit equals roughly 0.25 U.S. dollars.)

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