Bank Negara Malaysia Commits RM600 Million to Supercharge MSMEs in Belanjawan 2024

Bank Negara Malaysia is injecting RM600 million into its Fund for SMEs, with allocations for microentrepreneurs, small contractors, agrofood initiatives, and green certifications. The move is in line with the Belanjawan 2024 plan to support MSMEs, with an additional RM25 million to assist low-income microentrepreneurs.

23 October 2023 – In a strategic move to bolster the growth of micro, small, and medium enterprises (MSMEs), Bank Negara Malaysia (BNM) has earmarked RM600 million in funding. The announcement was made in the Belanjawan 2024 speech by the Prime Minister and Minister of Finance, YAB Dato’ Seri Anwar bin Ibrahim on October 13, 2023.

The allocation from BNM’s Fund for SMEs is designated for four priority segments:

  1. Micro Enterprises Facility (MEF): RM200 million has been added to this facility to support microentrepreneurs, with a particular focus on low-income microentrepreneurs through the iTEKAD initiative.
  2. All Economic Sectors Facility (AES): RM200 million is allocated to stimulate CAKNA 2, a contract financing facility designed for small contractors (G1-G4) and geared towards enhancing small-scale government projects with a contract value of less than RM1.5 million.
  3. Agrofood Facility (AF): RM100 million has been set aside to contribute to national food security goals by increasing domestic food supply and expanding import capacity.
  4. Low Carbon Transition Facility (LCTF): An allocation of RM100 million aims to incentivize MSMEs to pursue sustainability and green certification for their business operations.

With approximately RM8.4 billion still available across all financing facilities, BNM is committed to supporting MSMEs’ active involvement in key national initiatives outlined in Belanjawan 2024.

To further assist low-income microentrepreneurs, an additional RM25 million in grants will be provided, matching contributions from social finance funds, including corporate social responsibility funds, zakat, and cash waqf.

Author: Terry KS

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