Malaysia

KUALA LUMPUR: The Malaysian International Chamber of Commerce and Industry (MICCI) has expressed its full support for the government’s decision to appoint the Ministry of Investment, Trade and Industry (MITI) as the sole issuer of non-preferential certificates of origin (NPCO) for exports to the United States, effective 6 May 2025. Previously, NPCOs for the US were issued by business councils, chambers, or associations appointed by MITI. MICCI Supports National Economic Priorities MICCI President Christina Tee said the chamber is willing to forgo part of its revenue from issuing NPCOs to support the country’s broader economic goals. “As MICCI, we are willing to let go of that revenue and support MITI in issuing the NPCOs so that the nation can come out strong during this time,” she said during a media luncheon celebrating MICCI’s 188-year legacy. The luncheon also saw the attendance of: Renuka Indrarajah, MICCI Vice-President Lee Ting Kiat, Southern Region Chairman Datuk Brian Tan, Northern Branch Chairman Tee noted that while NPCOs represent a source of income for MICCI, only about 15% of the chamber’s certifications are for US-bound exports. “We cannot have it both ways. If we want the nation to succeed, we must make sacrifices,” she added. Tee highlighted MICCI’s stringent issuance policy, explaining that certificates are only issued to members subject to annual reviews. “If the members are not genuinely manufacturing here, we will not issue the certificate. MICCI has always maintained transparency and strict adherence to guidelines,” she said. Tee expressed confidence in MITI’s ability to manage the transition, noting the ministry’s past experience in issuing certificates for countries like India and Türkiye, which imposed import tax constraints. “Now, with the US imposing import taxes, MITI has once again been called to the task. The concern now is whether the system can handle the significantly high workload,” she said. She explained that for sea shipments, there’s typically a two-week buffer between loading and arrival, allowing time for the certificate to be issued and emailed, helping to avoid delays. “MITI deserves our full support and the necessary time to manage this transition,” she emphasised. On May 5, MITI released a statement announcing its new role as the sole issuer of NPCOs for US-bound exports, effective May 6, 2025. The ministry also warned that any attempt to circumvent tariffs—including submitting false or misleading declarations of value or origin—will be treated as a serious offence. MICCI traces its roots back to 1837 with the formation of the Penang Chamber of Commerce and Agriculture. It later merged with other chambers such as the Perak Chamber of Commerce and the Selangor Chamber of Commerce, officially becoming MICCI in 1974.

The Alliance Islamic Bank Zakat Microfinancing Programme (AZAM) continues to drive meaningful impact by empowering asnaf micro-entrepreneurs through inclusive financial solutions aimed at fostering long-term economic independence. Early outcomes of the programme indicate steady progress, with participants reporting an average 36% increase in business revenue within just one year of joining AZAM—underscoring the programme’s effectiveness in helping underserved communities build stronger financial foundations.  These outcomes are captured in the ‘AZAM Programme Evaluation’, an independent study by Satu Creative, an entrepreneur support organisation committed to empowering early-stage tech startups and impact-driven businesses. The report evaluated the first cohort of 36 asnaf entrepreneurs and highlights AZAM’s growing role in advancing financial resilience and promoting sustainable livelihoods among Malaysia’s underserved communities. Among the key insights from the study: Over 90% reported a positive shift in their lives since joining the programme, citing improvements in healthcare, education and quality time with family Participants successfully increased their total business revenue, from an average of RM2,151 to RM2,924 AZAM stands as Malaysia’s first Islamic social finance initiative that redefines zakat as a strategic tool for economic upliftment. By adopting a sustainable revolving fund model and offering interest-free microfinancing under the Qard concept, AZAM empowers asnaf entrepreneurs to build and grow their businesses. Repayments made by participants are reinvested into the fund, enabling continuous support for new recipients and expanding the programme’s impact across more communities.  This innovative model not only preserves the value of zakat, but also cultivates the culture of shared responsibility, dignity and resilience among recipients. Rooted in the principles of Value-Based Intermediation (VBI) and Maqasid Shariah, AZAM is designed to promote socio-economic development. This programme empowers underserved communities to grow sustainably and with purpose. To ensure effectiveness, AIS works in partnership with Lembaga Zakat Selangor (LZS) to identify and verify eligible asnaf recipients. Amanah Ikhtiar Malaysia (AIM) plays a critical role in the disbursement and collection of funds, while also delivering training and guidance to equip entrepreneurs with the tools to succeed.  Rizal IL-Ehzan Fadil Azim, Chief Executive Officer of Alliance Islamic Bank Berhad, said, “The success of AZAM lies not just in the numbers, but in the real-life impact on families and communities. It’s about enabling livelihoods, restoring dignity, and laying the foundation for a more inclusive economy.” AIS is committed to expanding the AZAM Programme nationwide, with ongoing discussions involving various State Religious Councils and Zakat Authorities following the initiative’s success in Selangor. In parallel,  AIS aims to deepen community engagement by incorporating wakalah-based zakat contributions into the programme. Individuals and institutional contributors who channel their zakat through Lembaga Zakat Selangor (LZS) may opt for zakat wakalah, with funds directly allocated to support AZAM’s revolving financial fund. This initiative will expand access to financing for asnaf entrepreneurs, enabling greater financial inclusion and economic participation. AIS also welcomes collaboration with private sector partners,  government- bodies, and NGOs to support initiatives that drive economic empowerment and deliver positive social, environmental, and economic outcomes- aligned with our mission of “Building Alliances to Improve Lives.” To those interested to know more about AZAM, please visit: www.alliancebank.com.my/Islamic/Business/Financing/zakat-microfinancing  

Boost Bank has reached a significant milestone by disbursing nearly RM150 million in financing to small and medium enterprises (SMEs) across Malaysia. The digital lender, which made headlines as the first locally grown digital bank in the country, reports that hundreds of SMEs have accessed funding through its Term Loan and Revolving Credit facilities. With an average loan size of RM300,000, the bank’s SME financing initiatives point to a growing appetite for accessible, technology-driven business funding. The facilities offer streamlined applications, rapid approvals, and adaptable repayment terms—features designed to ease financing for entrepreneurs often overlooked by traditional banks. “Reaching this milestone is not just about hitting a target,” said Fozia Amanulla, CEO of Boost Bank. “It’s about showing what’s possible when financing is made simple, accessible, and built around the real needs of business owners. This also reflects how fast digital solutions are reshaping the way businesses operate.” The bank’s funding has supported SMEs across diverse sectors such as wholesale, manufacturing, construction, F&B, and retail. Many of these businesses fall into segments traditionally underserved by conventional financial institutions, highlighting Boost Bank’s role in addressing critical funding gaps in the ecosystem. Looking ahead, the bank is preparing to launch a dedicated digital platform tailored for SMEs. Slated for release later this year, the platform aims to provide a comprehensive interface for financing, payments, cash flow, and operational management—positioning Boost Bank not just as a lender, but as a full-suite digital partner for small businesses. By combining financial access with digital innovation, Boost Bank continues to redefine SME banking in Malaysia—an important step toward a more inclusive and agile financial landscape.