The MADANI government will provide more than RM5 billion in microfinancing facilities in 2026, aimed at benefiting over 400,000 micro-entrepreneurs nationwide through loans of up to RM100,000.
The Ministry of Finance (MOF) said in a statement that the financing will be channelled through various agencies and development financial institutions, including Amanah Ikhtiar Malaysia, Bank Simpanan Nasional, TEKUN Nasional, Majlis Amanah Rakyat, Agrobank, and Bank Rakyat.
Some schemes will offer financing rates as low as 3% per annum.
Prime Minister Datuk Seri Anwar Ibrahim, who is also Finance Minister, said relevant agencies have been instructed to step up outreach efforts to ensure wider access, especially for small traders, hawkers, and micro-entrepreneurs facing capital constraints.
He said application processes must be simplified and financing conditions kept fair and accessible, in line with the principles of the MADANI Economy, which emphasises compassion, justice, and equality.
He added that the initiative targets groups such as small traders, night market vendors, women, youth, gig workers, TVET graduates, small contractors, padi farmers, and asnaf communities.
He clarified that the microfinancing facilities are separate from other SME support schemes, including the RM5 billion SME Special Relief Facility under Bank Negara Malaysia and the RM5 billion guarantee scheme under Syarikat Jaminan Pembiayaan Perniagaan.
In total, more than RM15 billion in financing support has been made available to MSMEs this year.
