The government has allocated up to RM5 billion in low-cost financing to support the growth of small and medium-sized enterprises (SMEs), according to Entrepreneur Development and Cooperatives Minister Steven Sim.
Sim said the loans, offered at interest rates between 3% and 5%, are aimed at helping businesses upgrade operations, adopt automation, and transition դեպի more sustainable practices.
The funding forms part of a broader push to strengthen SMEs amid increasing global uncertainties and economic shifts. Speaking at the launch of Heritage Brands of Penang, a publication by the Penang Institute highlighting long-standing businesses, Sim introduced the PowerUp10K campaign as a key initiative for the year.
Under this campaign, the government aims to disburse up to RM15 billion in low-cost financing in 2026, up from RM10 billion last year. The initiative targets supporting 10,000 businesses, with at least RM100 million allocated to train up to 100,000 entrepreneurs.
As of February, RM2 billion in financing has already been approved under the programme.
Sim noted that Penang is well-positioned to benefit, given its strong presence in the semiconductor sector and its history of innovation. He highlighted heritage brand Ghee Hiang as an example of business evolution—from producing traditional tau sar pneah (Tambun biscuits) to exporting sesame oil, and now exploring health supplements using its oil’s properties.
He encouraged Penang businesses to tap into the available support to sustain growth over the next 50 to 100 years.
