Bank Negara Malaysia (BNM) has unveiled several initiatives from the 2025 National Budget aimed at supporting MSMEs, advancing Islamic finance innovation, and enhancing financial inclusion through programs like iTEKAD and Perlindungan Tenang. Additionally, the forthcoming Consumer Credit Act will regulate non-bank credit providers and establish a Consumer Credit Commission to safeguard consumers.
22 October 2024 – Bank Negara Malaysia (BNM) has provided further insights into its initiatives announced in the 2025 National Budget speech delivered by Prime Minister and Minister of Finance, YAB Dato’ Seri Anwar Ibrahim. These initiatives aim to support micro, small, and medium enterprises (MSMEs), promote financial inclusion, and foster innovation in Islamic finance.
Holistic Financial Support for MSMEs
BNM continues to offer holistic financial assistance to MSMEs through RM3.8 billion in funding initiatives. These funds are aimed at key areas including:
- SME Automation and Digitalisation Facility to support digital transformation,
- Low Carbon Transition Facility and High Tech & Green Facility to promote sustainable practices, and
- Agrofood Facility to boost food production.
Currently, more than RM7 billion is available under BNM’s Fund for SMEs, providing financing for strategic sectors aligned with national priorities. Additionally, the financing limit for the Micro Finance Scheme (Skim Pembiayaan Mikro, SPM) has been doubled from RM50,000 to RM100,000. The scheme also benefits from a stamp duty exemption on instruments of agreement for financing up to RM100,000.
iTEKAD: Matching Grant and Takaful Protection
The government has allocated RM15 million for iTEKAD’s seed capital, to be matched by social finance sources such as donations, zakat, and corporate social responsibility funds. Furthermore, RM5 million will be granted to subsidise annual takaful contributions for microentrepreneurs, providing them with essential financial protection against risks such as accidents and natural disasters. This initiative targets small traders, delivery riders, and participants in the Inisiatif Pendapatan Rakyat program.
Perlindungan Tenang Voucher
The Perlindungan Tenang initiative offers simple and affordable insurance solutions for underserved communities, particularly low-income groups. Under this program, recipients of Sumbangan Tunai Rahmah will receive a RM30 voucher to purchase microinsurance or microtakaful products from licensed insurers and takaful operators.
RM100 Million Matching Fund for Islamic Finance Innovation
To drive innovation in Islamic finance, especially in risk-sharing instruments like musyarakah, the government is providing a RM100 million matching fund. This fund aims to support financing in sectors such as climate and food security, encouraging private sector investment and fostering a deeper understanding of risk-sharing models in Islamic finance. BNM is also reviewing Shariah contract standards to simplify frameworks and enhance innovation.
Consumer Credit Act (CCA) and Consumer Credit Commission (CCC)
BNM welcomes the Prime Minister’s announcement regarding the tabling of the Consumer Credit Act (CCA), which will be introduced in the next Parliamentary sitting. The CCA will streamline the regulatory framework for non-bank credit providers, establishing the Consumer Credit Commission (CCC) to oversee entities such as Buy Now Pay Later (BNPL) firms, non-bank factoring, leasing companies, debt collection agencies, and more. The CCC aims to close regulatory gaps and enhance consumer protection across the credit market.