The Minister of Entrepreneur Development and Cooperatives (KUSKOP), YB Steven Sim Chee Keong, recently held a meeting with 16 top management representatives from The Association of Banks in Malaysia (ABM), led by Maybank President and Group CEO, Dato’ Sri Khairussaleh Ramli.
The engagement focused on strengthening coordination between the banking sector and the Government in supporting Malaysia’s micro, small and medium enterprises (MSMEs) amid ongoing global uncertainties and rising energy-related cost pressures.
During the meeting, YB Steven Sim proposed a 10-point action plan to enhance collaboration between KUSKOP and financial institutions in supporting SMEs:
10-Point Action Plan
1. Prioritise essential business support
To ensure continued access to working capital financing, recognising that 43% of SME loans are for operational needs, to help businesses sustain amid rising energy cost pressures.
2. Adopt more inclusive assessment criteria
To implement more inclusive and practical assessment criteria for SMEs in order to improve access to financing.
3. Accelerate loan processing timelines
To accelerate loan processing and approval timelines to ensure faster delivery of support to businesses.
4. Enhance repayment flexibility
To provide greater flexibility during periods of uncertainty through restructuring and rescheduling of financing repayments, including repayment moratoriums on a case-by-case basis.
5. Strengthen syndicated financing collaboration
To enhance collaboration between commercial banks, KUSKOP and development financial institutions (DFIs) through syndicated financing to optimise resources and maximise impact.
6. Implement a “no wrong door” approach
To adopt a “no wrong door” approach by referring MSMEs to suitable products and services across financial institutions, including DFIs, where necessary.
7. Intensify capacity-building programmes
To strengthen collaboration on capacity-building programmes aimed at improving SME capabilities and resilience.
8. Expand promotion of SME financial products
To step up promotion and rollout of SME-focused financial products throughout the year.
9. Enhance SME accreditation value
To collaborate with SME Corp Malaysia to enhance the value and recognition of SME status accreditation.
10. Support scaling through PowerUp10k
To work with KUSKOP under the PowerUp10k initiative to further drive the scaling up of Malaysian businesses.
YB Steven Sim expressed appreciation to the top management representatives from 12 banks in attendance for their positive and supportive responses to the proposals.
He reiterated that a whole-of-ecosystem approach is critical in supporting MSMEs, emphasising the importance of continued collaboration between the Government and financial institutions to ensure Malaysian businesses remain resilient, competitive, and ready for growth despite global challenges.
The meeting was also attended by key industry leaders, including Tan Sri Dato’ Sri Dr Tay Ah Lek, Managing Director and CEO of Public Bank, and Dato’ Mohd Rashid Mohamad, Group Managing Director and CEO of RHB Bank.
Also present were senior management representatives from Maybank, AmBank (M), Bangkok Bank, Bank of America Malaysia, CIMB Bank, Hong Leong Islamic Bank, OCBC Bank (Malaysia), Public Bank, RHB Bank, UOB Malaysia, Standard Chartered Saddiq Berhad, and Boost Bank Berhad.
In addition, senior representatives from agencies under KUSKOP, including Bank Rakyat, SME Bank, TEKUN Nasional, and SME Corp Malaysia, were also in attendance at the meeting held at the Asian Institute of Chartered Bankers (AICB), Kuala Lumpur.
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