SME Bank Receives RM1.7 Billion Allocation to Strengthen Bumiputera, Halal, Industry4wrd, Export, and Social Enterprise for MSMEs

KUALA LUMPUR: 24 October 2023 – SME Bank will continue to play its mandated role with the RM1.7 billion allocation from the recent National Budget 2024 announcement, for new and existing initiatives consisting of financing facilities and capacity-building programmes.

Minister of Entrepreneur and Cooperatives Development, YB Datuk Ewon Benedick stated, “The government looks forward to the efficient utilisation of dedicated funds to create a transformative impact on the SME landscape. As such we urge all relevant agencies to work together to facilitate and ease access to financing and capability development programmes for eligible MSMEs that meet the criteria of the programmes.”

Datuk Wira (Dr.) Aria Putera Ismail, Group President / Chief Executive Officer SME Bank said, "SME Bank welcomes the 2024 budget presented by the Prime Minister recently, which will allow us to strengthen our focus to channel the budget to the right MSMEs. SME Bank has identified three aspirations namely technology transformation of Industry4WRD, empowerment of MSMEs in the halal industry, and expansion of regional exports. These aspirations are in line with the New Industrial Master Plan 2030 (NIMP 2030) which aims to develop Malaysia’s industrial capacity to be more resilient for the long-term and achieve sustainable growth.”

SME Bank will offer financing solutions for working capital and asset acquisition to MSMEs that embrace technology transformation under Industry4WRD. This initiative includes a capacity-building program centered on leveraging Artificial Intelligence (AI) to strategically enhance customer service, bolster marketing and sales efforts, and drive growth, with a particular emphasis on MSMEs. This will be achieved through the allocation of the SME Technology Transformation Fund (RM400 million) and Dana Pemantapan Automasi (RM50 million).

The HalalBiz Financing Programme, backed by a substantial RM100 million allocations, solidifies SME Bank's pivotal role as an enabler for MSMEs within the halal industry. Underpinned by this strategic commitment, Datuk Dr. Mohammad Hardee Ibrahim, Group Chief Corporate Strategy Officer, emphasised, “We have been actively supporting MSMEs in their halal journey through a range of initiatives administered under the Ministry of Entrepreneur and Cooperatives Development (MECD). In 2023, MECD allocated RM2.15 million to SME Bank's subsidiary, the Centre for Entrepreneur Development and Research Sdn. Bhd. (CEDAR) to provide a comprehensive package of financial support, strategic advisory services, and capacity development.”

In a bid to nurture global champions among the Bumiputera SMEs, SME Bank also received a total of RM3 million to continue offering entrepreneur capacity development through the Business Export Programme (BEP). The Bank received additional funding for the Jaguh Serantau Financing making it totaling to RM300 million for this cause.

Datuk Wira Aria added, “Supporting the Bumiputera entrepreneurs will continue to be one of our mandates and is made possible with our new financing programmes namely, Dana Kemampanan PMKS Bumiputera amounting to RM200 million. The program has been enhanced with financial assistance in the form of financing offers and matching grants, which are aimed at bolstering the capacities of MSME Bumiputera businesses. These measures are designed to enhance their production capabilities, expand their market presence, and improve overall competitiveness.”

The Juara Lestari Perusahaan Sosial 2.0, a capacity development initiative aimed at increasing the number of accredited social enterprises (SEs) that support MECD SEMy2030 initiatives, will leverage a recently allocated fund of RM1 million. CEDAR as the implementing agency will provide comprehensive support, including training, business planning coaching, and facilitation grants. This programme is a continuation of SME Bank’s 2023 Juara Lestari. Furthermore, Social Enterprises (SEs) will have the opportunity to access financing support from SME Bank for both asset acquisition and working capital needs through the Skim Pembiayaan Perusahaan Sosial, with a total allocation of RM15 million.

YAB Prime Minister also re-announced five existing SME Bank financing to enable the Bank to continue delivering the needs of the MSMEs. These include the SME Recapitalisation (RM500 million), Dana Pemangkin Ekosistem Industrial Building System (IBS) (RM70 million), Tabung Khas Pelancongan (RM60 million), Dana Pemantapan Automasi (RM50 million) and Skim Pembiayaan Perusahaan Sosial (RM15 million).

The Budget 2024 saw the Government allocate a total of RM44 billion in the financing, grants and capacity development programmes, especially for the empowerment of the MSMEs. Entrepreneurs interested in financing facilities and entrepreneurial development programmes can contact SME Bank's Customer Call Centre at 03-26037700 or visit the official website at www.smebank.com.my.