Terry KS BNM will increase its Fund for SMEs by RM2.5 billion and introduce a RM10 billion credit guarantee scheme to expand financing access for first-time borrowers. The move aims to support a wider range of SMEs through collaboration with CGC and financial institutions.
MALAYSIA, 6 JANUARy 2026 – Bank Negara Malaysia (BNM) has welcomed the Prime Minister’s announcement in the 2026 New Year Message of an additional allocation to BNM’s Fund for SMEs, alongside the introduction of a new credit guarantee scheme aimed at widening access to financing for small businesses.
Under the initiative, an additional RM2.5 billion will be channelled through BNM’s Fund, with a strong focus on supporting first-time borrowers. To date, BNM has provided RM32.4 billion in concessional financing via participating financial institutions, primarily targeting viable micro and small enterprises facing financing constraints. The latest increase brings the total allocation under BNM’s Fund to RM34.9 billion.
Looking ahead, BNM will progressively transition from direct financing support to guarantee-based mechanisms, with a target of RM10 billion in guaranteed financing. This approach is intended to deliver broader impact by enabling a larger segment of SMEs, including new entrepreneurs and first-time borrowers, to secure access to credit.
The credit guarantee scheme will be implemented in collaboration with Credit Guarantee Corporation Malaysia Berhad (CGC) and financial institutions. By leveraging guarantees rather than direct lending alone, BNM aims to strengthen risk-sharing, encourage financial institutions to extend credit to underserved segments, and support sustainable SME growth across the economy.