KUSKOP Opens RM50 Million BARAKAT Financing for Ramadan Traders

As Ramadan approaches, many micro entrepreneurs rely on this short but crucial season to generate income that sustains their businesses for the rest of the year. Recognising this reality, the Ministry of Entrepreneur Development and Cooperatives (KUSKOP) has introduced a dedicated financing initiative aimed squarely at small traders operating during the festive period. Known as the Ramadan People’s Business Cost Scheme (BARAKAT), the programme is designed to provide fast, accessible and affordable capital to micro entrepreneurs nationwide, helping them seize economic opportunities throughout Ramadan and ahead of Hari Raya Aidilfitri.

What Is BARAKAT?

BARAKAT is a special Ramadan financing scheme with an allocation of RM50 million, implemented by TEKUN Nasional. It specifically targets micro entrepreneurs who operate seasonal or small scale businesses during Ramadan, including bazaar traders and small retailers.

The scheme forms part of the MADANI Government’s broader commitment to ensure inclusive and targeted access to financing, particularly for entrepreneurs who often face difficulties securing formal loans.

The initiative was announced by Steven Sim, Minister of Entrepreneur Development and Cooperatives, who said the programme is meant to strengthen micro entrepreneurs’ access to working capital at a critical time of the year.

Financing Amounts and Profit Rate

Under BARAKAT, financing is structured to accommodate entrepreneurs at different levels of formality:

RM1,000 to RM5,000 for micro traders who do not yet have local council permits or SSM registration
RM1,000 to RM30,000 for entrepreneurs with valid local authority permits or SSM registration

All financing carries a low profit rate of 3 percent per annum, with a financing tenure of up to 12 months, making it one of the more affordable micro financing options available to small traders.

Faster Approval With Simplified Procedures

One of BARAKAT’s most notable features is its accelerated approval process. KUSKOP has committed to shortening approval times to between five and seven days, compared to the previous timeframe of 30 to 40 days.

While documentation is still required, the ministry has pledged to simplify procedures and reduce unnecessary bureaucracy, acknowledging the practical constraints faced by small traders, especially those operating informally or on a seasonal basis.

This approach aligns with KUSKOP’s ABCD strategy, which focuses on improving access to capital in a way that is practical, targeted and responsive to real business conditions.

Who Will Benefit?

BARAKAT is expected to benefit micro entrepreneurs across Malaysia, particularly those involved in:

Food and beverage businesses
Clothing and apparel sales
Daily essentials and consumer goods
Ramadan and festive season trading activities

The scheme is projected to support at least 1,666 micro entrepreneurs, helping them increase income, maintain business continuity and fully capitalise on heightened consumer demand during Ramadan.

More Than Short Term Financing

Beyond providing temporary working capital, BARAKAT reflects a broader shift in how micro entrepreneurs are supported. By combining low financing costs with faster approvals and simplified processes, the scheme aims to give small traders confidence to operate, expand and plan more sustainably during one of the most important trading periods of the year.

For many micro entrepreneurs, timely access to capital during Ramadan can make the difference between merely surviving and meaningfully growing their businesses.