Government-linked companies (GLCs) and government-linked investment companies (GLICs) will be providing funding of up to RM1.5 billion to encourage startups in the country.
This is presented by Prime Minister Datuk Seri Anwar Ibrahim at the tabling of Budget 2024 at Dewan Rakyat today.
The funding will include Bumiputera’s small medium enterprises (SMEs) owners to spur the High Growth, High-Value (HGHV) sectors such as the digital economy, aerospace technology and electronics and electrical (E&E) fields.
Anwar, who is also the Finance minister, said the government allocates RM28 million for the development of the MYStartup platform as a single gateway that gathers startups and facilitates their business activities.
“The initiative will optimise a fund of RM200 million from various financing agencies and venture capital under one platform.”
He said the government aims to achieve a position within the top 20 for the Global Startup Ecosystem by 2030, with the goal of making Kuala Lumpur a hub for the digital industry and startups in the Southeast Asia region.
“The responsibilities of the Ministry of International Trade and Industry (MITI) and the Malaysian Investment Development Authority (MIDA) will no longer be solely focused on investment incentive approvals but will also involve facilitating foreign direct investment (FDI) and domestic direct investment (DDI) from the application process to investment realisation,” he said.
The Malaysia Madani 2024 Budget will be the second national budget tabled by the unity government under Anwar’s leadership.
The tabling of the Budget, which began at 4pm, is being broadcasted live on local television and social media platforms.
Under Bank Negara Malaysia, a total of RM8 billion in loan funds is provided to support small and medium-sized enterprises.
Of the total, RM600 million is specifically allocated to assist microenterprises, low-income entrepreneurs, small contractors, the adoption of sustainable practices, and the food security sector.
Micro-entrepreneurs and small traders will be provided with small loans totalling RM2.4 billion through agencies like Bank Negara Malaysia, Bank Simpanan Nasional and TEKUN
RM1.4 billion under BSN’s microloans is intended to help provide capital for businesses, equipment purchases, premises and marketing for small-scale vendors and entrepreneurs.
RM330 million ringgit under TEKUN is also allocated to provide financing facilities to small traders such as batik and craft entrepreneurs, indigenous entrepreneurs, as well as bumiputera entrepreneurs in Sabah and Sarawak, where RM30 million of this is specifically provided to fund businesses managed by the Indian community.
The remaining RM720 million is earmarked to encourage women and youth to enter the business sector.
