SME Bank will administer approximately RM2.8 billion in financing and grants under Malaysia’s Budget 2027, covering 12 programmes across seven priority sectors.
The allocation forms part of more than RM7 billion in government-mandated initiatives assigned to its parent company, Bank Pembangunan Malaysia Berhad (BPMB) Group.
Financing accounts for most of SME Bank’s allocation, with RM11 million earmarked for grants under two programmes.
Sustainability and technology financing
Dana Kelestarian Alam 2.0 will receive RM600 million to finance Malaysian companies undertaking low-carbon initiatives and adopting more sustainable business practices.
Another RM500 million will go towards the Technology Adoption Fund, which supports digitalisation, technology adoption and Industry 4.0 initiatives in high-growth and high-value industries under the New Industrial Master Plan (NIMP) 2030.
The fund also covers contractors, manufacturers and installers of Industrialised Building System (IBS) components.
Support for entrepreneurs and tourism
SME Bank will allocate RM558 million to entrepreneur development, including RM300 million under the Bumiputera Economic Development Programme to finance business expansion, including within the halal industry.
MySMELady 3.0 will receive RM100 million to support women-owned MSMEs, while the RM150 million Umbrella Ecosystem programme will finance businesses across franchise and licensing networks.
An RM8 million grant under Maju Usahawan Madani 3.0 will support capability development among underserved entrepreneurs, including youth, women, rural communities and social enterprises.
The tourism sector will receive RM500 million through two financing programmes.
Of this, RM200 million will go towards the Special Fund for Tourism to support SMEs, while RM300 million under the Tourism Programme will help businesses in tourism and related sectors expand their capacity.
Transport, supply chain and export financing
SME Bank will channel RM400 million into transportation, logistics and aerospace, split equally between two programmes.
The Transportation & Logistics Programme will finance companies and projects in transportation, logistics, maritime and oil and gas.
Meanwhile, the Aerospace Programme will support businesses across the sector, including maintenance, repair and overhaul (MRO) providers.
Another RM200 million under the Local Acceleration and Growth Programme will help manufacturers, service providers and local vendors improve productivity and strengthen their participation in the supply chains of multinational corporations and major Malaysian companies.
A separate RM3 million grant under the Business Export Programme will support Bumiputera MSMEs in manufacturing and services to improve export readiness and access overseas markets.
SME Bank focuses on development outcomes
Samad Majid Zain, Chief Executive Officer of SME Bank, said the bank would leverage BPMB Group’s capabilities to help businesses adopt technology, improve productivity, operate sustainably and expand into new markets.
“In line with Bank Negara Malaysia’s Performance Measurement Framework (PMF), we will prioritise measurable development impact, additionality and effective delivery, helping businesses become more competitive, create jobs and contribute to stronger communities,”
he added.
Featured image credit: Edited by Fintech News Malaysia, based on image by ImageFlow via Magnific
