Manufacturing federation calls for financing inclusivity for MSMEs

KUCHING (Feb 1): A call has been made on the government to extend the BR Prosper-i and SME Bank Success financing initiatives to businesses across all communities.

In voicing this out, Federation of Malaysian Manufacturing (FMM) president Jacob Lee said this would be in line with the broader objective of supporting micro, small and medium enterprises (MSMEs)’s development and inclusivity.

“These initiatives by the Ministry of Entrepreneur and Cooperatives Development (Kuskop) are timely and positive, especially considering the current volatility in global trade, where access to financing and cash flow remains a critical challenge for MSMEs.

“We hope that this facility could also be extended to businesses across all communities,” he said in a statement, issued in connection with the launch of the BR Prosper-i and SME Bank Success financing initiatives.

Equipped with a total allocation of RM100 million, the initiatives are aimed at strengthening access to financing for MSMEs, particularly those within the Chinese business community.

Lee also expressed hope that more similar programmes could be rolled out in the future and institutionalised through consistent annual allocations under the national budget, so as to ensure sustained and far-reaching support for MSME development.

“Equally important is the government’s continued emphasis on inclusive MSME policies, ensuring that no viable business is left behind,” he added.

According to him, FMM also emphasises the importance of a simplified application process, coupled with swift processing times and transparent approval procedures so that financial assistance can reach targeted MSMEs efficiently and in a timely manner.

“The inclusion of guarantee coverage by SJPP (Syarikat Jaminan Pembiayaan Perniagaan, a government-owned company supporting SME financing in Malaysia) or CGC (Credit Guarantee Corporation) under the financing programme is particularly welcomed, as it addresses one of the key barriers faced by MSMEs; for instance, limited collateral or shorter credit histories.

“By sharing financing risks, the guarantee mechanism enhances confidence among financial institutions, supports broader lending to viable businesses, and enables more MSMEs to access funding that might otherwise be out of reach,” he said.

Lee further pointed out that FMM, with about 76 per cent of its members comprising MSMEs, represented a significant segment of Malaysia’s manufacturing and entrepreneurial base.

“As the voice of the manufacturing sector, FMM not only advocates policies that support industrial growth and competitiveness, but also acts as a ground-level partner to industry.

“The federation works closely with its members, from SMEs to large enterprises, to upgrade capabilities, adopt new technologies, strengthen supply chains and enhance operational resilience.

“In this regard, we strongly support financing initiatives that enable manufacturers to scale up, move up the value chain and remain globally competitive, in line with FMM’s long-standing vision of moving Malaysian industry from cost-based competition to capability-based competition,” he elaborated.