Funding Societies Malaysia has called for part of the government-backed financing guarantees under Budget 2027 to be extended to non-bank lenders and digital platforms, saying this could widen access to capital for micro, small and medium enterprises (MSMEs) without collateral or established banking histories.
Country head Chai Kien Poon welcomed the RM270 million allocation to attract private capital into equity crowdfunding (ECF) and peer-to-peer (P2P) financing platforms, alongside up to RM1 billion in financing for Bumiputera contractors through TERAJU.
He said government development capital could lower financing costs and barriers to funding, while private investors would help maintain risk discipline and channel capital to businesses underserved by traditional banks.
Chai also welcomed the proposed flat RM10 stamp duty on P2P financing agreements from Jan 1, 2027 to Dec 31, 2030, saying it would reduce borrowing costs for underserved businesses amid rising expenses and uncertainty linked to oil prices and supply chain disruptions.
He said financing was particularly important for smaller Bumiputera contractors, including those in the G1 to G4 categories, who need upfront capital to purchase materials and pay wages before receiving payment for completed work.
On government-backed guarantees from the SJPP and Credit Guarantee Corporation Malaysia (CGC), Chai said these could lower risk premiums and encourage more private institutional funding through P2P platforms.
He called for part of the guarantees to be made available through more non-bank financing channels, including digital platforms, and said Funding Societies was keen to build on its partnership with CGC and explore a complementary arrangement with SJPP.
“The priority now is deployment: clear eligibility, fast processes, and reaching MSMEs without collateral or a long banking history, and those who need small-ticket and short-term revolving financing,” he said.
Chai added that Funding Societies looked forward to working with the government and the Securities Commission Malaysia to ensure the measures reached businesses that needed financing.
