Affin Bank has secured a US$400 million (approximately RM1.7 billion) long-term financing package from the International Finance Corporation (IFC) to expand financial support for micro, small and medium enterprises (MSMEs) across Malaysia.
The partnership aims to improve access to financing for businesses seeking to expand their operations, invest in new opportunities and strengthen their long-term growth. Particular attention will be given to women-owned enterprises and businesses operating in underserved regions, including Sabah and Sarawak, where access to funding can be more challenging.
Under the agreement, Affin Bank will channel the financing to eligible MSMEs, helping businesses obtain the capital needed to support daily operations, business expansion and future investments.
The initiative is expected to contribute to Malaysia’s economic development by supporting entrepreneurship, encouraging business growth and creating more employment opportunities.
IFC estimates that the partnership could help generate at least 42,000 jobs across Malaysia over the next five years, while improving financial access for businesses outside major urban centres.
Allen Forlemu, IFC Regional Industry Director for the Financial Institutions Group in Asia Pacific, highlighted the importance of providing greater financial opportunities to underserved communities.
“We estimate that this partnership could create at least 42,000 jobs across Malaysia over the next five years, while expanding access to finance for women entrepreneurs and enterprises operating outside major urban centers, especially the ones where the financing gaps are wider,” he said.
Forlemu also welcomed the collaboration with Affin Bank, recognising its commitment to supporting Malaysian MSMEs and promoting greater financial inclusion.
“We welcome working with a partner of AFFIN BANK’s focus, experience, and expertise and appreciate their visionary leadership in supporting the growth of Malaysian MSMEs, including those owned by women, and uplifting underserved communities in places like Sarawak and Sabah,” he added.
Meanwhile, Affin Group President and Group Chief Executive Officer Datuk Wan Razly Abdullah said the partnership would strengthen the bank’s ability to provide financing solutions to businesses with strong growth potential.
“Through this collaboration with IFC, we are expanding our ability to support businesses that have the potential to grow, particularly women-owned enterprises and businesses in regions where access to financing remains more limited,” he said.
Wan Razly emphasised that access to capital plays an important role in helping smaller businesses become more competitive and contribute to the country’s economic progress.
“We believe greater access to capital is essential to advancing socio-economic development, strengthening local economies and creating opportunities for more Malaysians to participate in the nation’s growth,” he added.
Beyond providing financing, the collaboration will also give Affin Bank greater access to international capital markets, IFC’s global investor network and its expertise in development finance.
These resources are expected to support the bank’s efforts to strengthen its MSME financing capabilities and broaden its reach to businesses that may face difficulties obtaining traditional financing.
Affin Bank has been expanding its SME banking business through financial products and services designed for startups, women entrepreneurs and growing companies.
The latest financing package builds on these efforts by providing additional resources to support businesses at different stages of development.
MSMEs play an important role in Malaysia’s economy, contributing to employment, business activity and economic development across various industries. However, access to suitable financing remains a challenge for some smaller enterprises, particularly those with limited financial resources or operating outside established commercial centres.
By improving access to funding, the Affin Bank-IFC partnership seeks to help more businesses invest in equipment, increase production capacity, improve operations and explore new markets.
The focus on women-owned businesses also reflects a broader effort to encourage inclusive economic participation and provide entrepreneurs with more opportunities to develop sustainable businesses.
For businesses in Sabah, Sarawak and other underserved areas, greater financing availability could help address existing funding gaps and support local economic activity.
The US$400 million financing package represents a significant step in Affin Bank’s efforts to strengthen its MSME banking portfolio while supporting Malaysia’s wider financial inclusion and economic growth objectives.
Through the partnership, Affin Bank and IFC aim to help more Malaysian businesses access the financial resources needed to grow, create jobs and contribute to the country’s long-term economic development.
