Bank Negara Malaysia (BNM) is adding RM5 billion to its SME relief financing facility under Budget 2027.
The top-up doubles the SME Stabilisation Relief Facility (SME SRF) to RM10 billion and sits within a wider set of BNM Budget 2027 measures covering SME financing, credit cards and medical insurance.
The central bank expects the extra allocation to give around 9,000 more SMEs, including microenterprises, access to affordable working capital.
It said the funds will help businesses manage temporary cash-flow pressures arising from the economic impact of the ongoing Middle East conflict.
BNM said RM3.8 billion in financing under the original allocation had been approved as at 30 September 2026, covering more than 6,800 SME accounts.
The facility remains open to affected SMEs in all economic sectors until 30 June 2027 or until the funds are fully used, whichever comes first.
Working capital for small contractors
BNM will strengthen the implementation of CAKNA to widen access to working capital for small contractors in grades G1 to G4 who are carrying out government projects. The goal is to help these projects reach completion on time.
The RM10 nominal stamp duty treatment for CAKNA I and II financing agreements will now apply until 31 December 2030, lowering financing costs for participating contractors.
Basic credit cards capped at 14%
Banks will begin offering basic credit cards (BCC) in phases from October 2026. The no-frills cards drop rewards and cashback programmes in favour of a simpler structure, with a maximum interest or profit rate of 14% per annum.
That compares with the current ceiling of 18% a year on conventional cards. Existing cardholders can switch to a BCC and transfer eligible outstanding balances, which BNM said would lower their financing costs while encouraging responsible credit use and debt management.
Tax relief for MediAsas cover
MediAsas, the voluntary medical and health insurance/takaful (MHIT) plan, opens to the public in January 2027.
Premiums and contributions paid for the plan will qualify for income tax relief, including cover bought for immediate family members.
Budget 2027 sets aside RM40 million for MediAsas vouchers for employees of SMEs with fewer than 75 staff. The vouchers target workers who currently have limited or no MHIT coverage.
BNM said the measures form part of the RESET strategy, the government’s effort to tackle long-term private healthcare cost inflation. It added that they will help households prepare for healthcare needs while easing the burden of medical bills.
“Belanjawan 2027 reflects a balanced approach that continues to advance important reforms while supporting households and businesses amid ongoing global uncertainties,”
said Dato’ Sri Abdul Rasheed Ghaffour, Governor, Bank Negara Malaysia.
He said the budget places greater emphasis on economic resilience, higher incomes, healthcare affordability and productive investment while preserving fiscal discipline.
Malaysia must continue strengthening productivity, innovation and investment alongside rising incomes to ensure sustainable growth that benefits everyone, he added.
Featured image credit: Edited by Fintech News Malaysia, based on image by Frolopiaton Palm via Magnific
