Malaysia is using guarantees and targeted financing schemes to improve credit access for underserved SMEs.
Bank Negara Malaysia Assistant Governor Suhaimi Ali told The Star that overall SME financing conditions remain broadly supportive, even as some businesses continue to face funding gaps.
Nearly 80% of SME financing applications were approved between January and May 2026.
By the end of May, banks had RM442 billion in outstanding financing to SMEs, up 5.3% from a year earlier. This represented about half of all business financing.
Access can be more difficult for micro enterprises, startups and companies with limited credit histories or insufficient collateral.
Businesses in newer sectors can also face hurdles when lenders have less experience assessing their models.
One measure targeting these gaps is the BNM-CGC Guarantee Scheme, which provides for up to RM10 billion of guaranteed financing through participating financial institutions.
BNM has also rolled out the RM5 billion SME Stabilisation Relief Facility for SMEs and micro enterprises affected by disruptions linked to the West Asia conflict.
Eligible businesses can obtain up to RM750,000 for up to five years at a maximum financing rate of 3.75% a year, including the guarantee fee.
Guarantees of up to 80% are available from CGC or Syarikat Jaminan Pembiayaan Perniagaan.
More than RM1.7 billion in financing had been approved for 2,789 SMEs under the facility as at 10 July.
The measures are intended to support viable businesses facing temporary pressures while widening access for borrowers that struggle to secure conventional financing.
Featured image: Edited by Fintech News Malaysia, based on image by Frolopiaton Palm via Magnific
