The government has provided more than RM15 billion in financing facilities and guarantees to support micro, small and medium enterprises (MSME) facing challenges arising from the current global economic landscape.
Prime Minister Datuk Seri Anwar Ibrahim said the government remained closely monitoring global geopolitical developments and their impact on the domestic economy, particularly on small traders and MSME which form the backbone of the country’s economy.
He said the government’s measures focused on three key areas, namely improving access to financing, reducing business costs and strengthening the competitiveness of MSME.
The Prime Minister was responding to a question from Ipoh Timur MP Howard Lee Chuan How during the Prime Minister’s Question Time in the Dewan Rakyat on Tuesday.
Anwar said financing support was among the government’s main efforts, with facilities and financing guarantees exceeding RM15 billion provided to assist MSME affected by current economic pressures.
Since its launch in mid-May 2026, Bank Negara Malaysia’s Stabilitation Relief Facility (SRF) has approved nearly RM1 billion in financing, benefiting more than 1,500 MSME.
Meanwhile, the Skim Jaminan Pembiayaan Perniagaan (SJPP) approved financing guarantees worth RM4.9 billion as of the first half of 2026, benefiting over 6,000 MSME.
Microcredit financing provided through agencies including Bank Simpanan Nasional (BSN), Agrobank and TEKUN Nasional also reached RM2.2 billion, benefiting around 195,000 micro entrepreneurs.
To ease business costs, Anwar said the government had implemented rental reductions for government-owned business premises.
He cited Kuala Lumpur City Hall (DBKL), which provided a 50% rental discount for hawker sites effective from 1 April 2026, while Majlis Amanah Rakyat (MARA) introduced a 20% rental discount for its business premises from 1 June 2026.
On the implementation of e-Invois, Anwar said the system was important in reducing tax leakage while improving compliance.
He said more than 50,000 taxpayers had submitted additional tax payments amounting to RM1 billion following the implementation of e-Invois.
However, the government remained aware of concerns regarding compliance costs and was prepared to consider measures to ensure the system would not burden MSME while allowing businesses sufficient time to adapt.
The government had in December 2025 increased the income threshold for e-Invois exemption from RM500,000 to RM1 million, benefiting more than one million taxpayers.
In April 2026, the transition period was further extended until 31 December 2027 for taxpayers with annual income of up to RM5 million.
Anwar also announced additional measures to reduce compliance costs, including the introduction of the e-Invois Voluntary Disclosure Programme until 31 December 2027.
Under the programme, taxpayers will be allowed to review, update and correct e-Invois transactions submitted or required to be submitted during the mandatory implementation period without facing penalties from the Inland Revenue Board (LHDN).
The government also agreed to accelerate tax incentives by allowing businesses to claim full capital allowances within one year for eligible expenses related to e-Invois implementation, including information and communications technology (ICT) equipment purchases and software development or modification costs.
On diesel subsidy reforms, Anwar said the government had taken into account the needs of small businesses.
Individual owners of pickup trucks and jeeps can apply for an additional 100 litres under BUDI Diesel, bringing their total allocation to up to 300 litres.
As of 6 July 2026, around 200,000 Malaysians had been approved for the additional 100-litre allocation.
The Domestic Trade and Cost of Living Ministry (KPDN) had also expanded the SKDS fleet card facility for pickup trucks and jeeps owned by small businesses, particularly sole proprietorships and partnerships.
To enhance MSME competitiveness, the government has also provided SME Digitalisation Grants worth up to RM5,000 for businesses adopting digital solutions and artificial intelligence (AI).
Anwar added that enforcement against illegal businesses operated by foreign nationals who fail to comply with licensing requirements or regulations would also be strengthened.
