Malaysia rolls out $1.26b loan facility to aid SMEs amidst Middle East disruptions

Eligible SMEs can obtain a working capital loan of up to MYR750,000 (about $189,000).

Malaysia has announced a $1.26b (MYR5b) SME Stabilisation Relief Facility to assist small and medium enterprises affected by the ongoing conflict in West Asia or the Middle East.

Eligible SMEs may obtain working capital of up to MYR750,000 (about $189,000) for a tenure of up to five years, at a maximum financing rate of 3.75% per annum, inclusive of the guarantee fee, the Bank Negara Malaysia (BNM) said in a press statement on 28 April 2026.

The SME SRF is expected to provide timely working capital support for viable businesses to sustain operations, the BNM said.

“BNM recognises SMEs in certain segments may be experiencing disruptions to operations, cash flow challenges, and difficulties in meeting short-term financial obligations,” the statement read.

The financing will be supported by guarantees of up to 80% from the Credit Guarantee Corporation Malaysia (CGC) or Syarikat Jaminan Pembiayaan Perniagaan (SJPP), particularly for SMEs without sufficient collateral, the BNM said.

Malaysian SMEs may also seek financial advisory, financial education support, and holistic debt repayment assistance from Agensi Kaunseling dan Pengurusan Kredit (AKPK). They may also directly reach out to financial institutions or to the BNM.

(US$1 = MYR 3.96)