Latest news with #2025BudgetInitiative
The Sun
10 hours ago
- Business
- The Sun
Short-term impact on oil prices from Israel-Iran conflict: Amir Hamzah
KUALA LUMPUR: The Israel-Iran conflict is expected to have only a short-term impact on crude oil prices, according to Minister of Finance II Datuk Seri Amir Hamzah Azizan. He said that while prices surged sharply during renewed hostilities, oil prices quickly retreated as signs of peace talks and ceasefire efforts emerged between the two countries. Amir Hamzah highlighted that despite initial volatility, market stability returned as fears of prolonged conflict and supply disruption subsided, reinforcing the government's confidence in managing the situation amid ongoing global economic uncertainty. 'Oil prices rose sharply when the conflict occurred. However, with the onset of peace talks, prices have declined. For now, the overall impact appears to be short term,' he told reporters at the Small Medium Enterprise Development Bank Malaysia Bhd (SME Bank) 2025 Budget Initiative launch today. Amir Hamzah emphasised that peace is crucial not only for humanity but also for sustaining economic stability. 'We hope that efforts towards peace talks will continue, and Malaysia will remain steadfast in supporting all initiatives to maintain peace in the region,' he said. Oil prices briefly jumped by about 7% earlier this month due to fears that the war between Israel and Iran could disrupt supply. But prices have since fallen back to around US$67 per barrel after tensions eased and talks began. Meanwhile, a fragile ceasefire seemed to be holding for a second day today. SME Bank has launched a suite of strategic initiatives valued at RM211 million, reinforcing its commitment to advancing the government's Madani Economic Framework and aligning with the bank's mandate under Budget 2025. Focused on high-impact sectors such as technology, tourism, halal, and environment, social and governance, these initiatives also promote inclusivity by empowering B40 and asnaf entrepreneurs, reinforcing SME Bank's role in building a resilient and future-ready MSME ecosystem. Amir Hamzah said the initiatives reflect the country's future direction towards a more modern, sustainable, and competitive economy. In line with the Madani Economic Framework, Amir Hamzah, said Budget 2025 has provided extensive support for MSMEs. 'This includes more than RM40 billion in the form of loans and guarantees, stamp duty exemptions to reduce the cost of financing access, and matching grants to support digitalisation and sustainable business practices.' He said the aim is to strengthen the competitiveness of MSMEs, while ensuring they remain relevant in a future economic landscape driven by technology and sustainability agendas. 'Therefore, for 2025, the government has mandated SME Bank to roll out various initiatives with an allocation exceeding RM1 billion, including five new initiatives worth over RM200 million designed to support sustainable and inclusive growth for the MSME segment. 'The launch of these strategic programmes by SME Bank today is to realise the government's vision and aspiration to stimulate MSME-driven growth, strengthen domestic economic resilience, and in turn help maintain investor confidence in Malaysia,' Amir Hamzah said. SME Bank acting group president and CEO Datuk Dr Mohammad Hardee Ibrahim shared initiatives, including MySMELady 2.0, Umbrella Ecosystem Financing, Dana Kelestarian Alam, and Maju Usahawan Madani, which demonstrate an approach to nation-building and a commitment to strengthening the national entrepreneurial landscape. 'Additionally, we are also proud to roll out the fourth edition of the SME Bank iTekad Ishraf, a beyond-financing initiative designed to equip the B40 and asnaf entrepreneurs with the knowledge, skills and resources needed to sustain and grow their businesses,' he said. Riding on this momentum, Mohammad Hardee said, the bank remains on track to achieve its RM3 billion approved financing target for this year, with continued emphasis on key strategic sectors, with RM2 billion already recorded as of May 2025. 'These achievements reaffirm our sustained role in fostering MSME development, in alignment with the government's Madani vision to build a more inclusive, resilient and future-ready Malaysia,' he said.
The Star
11 hours ago
- Business
- The Star
SME Bank's RM211mil strategic initiative to support MSME growth
KUALA LUMPUR: The launch of a strategic initiative worth RM211 million by Small Medium Enterprise Development Bank Malaysia Bhd (SME Bank) is set to support the sustainable and inclusive growth of the micro, small, and medium enterprises (MSMEs) segment. Finance Minister II Datuk Seri Amir Hamzah Azizan said the government has already mandated SME Bank to spearhead various strategic initiatives with an allocation exceeding RM1 billion for 2025, including this new initiative. "The launch of these strategic programmes by SME Bank is to realise the government's desire and aspiration to stimulate SME-driven growth, strengthen the resilience of the domestic economy, and subsequently help maintain investor confidence in Malaysia," he said at the launch of the 2025 Budget Initiative event organised by SME Bank today. The new initiative was launched by Amir Hamzah and witnessed by the Minister of Entrepreneur Development and Cooperatives, Datuk Ewon Benedick. Amir Hamzah said the initiative focuses on key areas such as technology, environment, social, and governance (ESG), tourism, and halal sectors, in line with national priorities outlined in the National Energy Transition Roadmap and the New Industrial Master Plan 2030. "This reflects the country's future direction towards a more modern, sustainable, and competitive economy," he said. In the context of the MADANI economic framework, this initiative reinforces the government's efforts to strengthen the MSME financing ecosystem, drive growth in the manufacturing, industrial sectors, and emerging sectors, promote digitalisation among local entrepreneurs, and ensure a balance between economic progress and social sustainability. Meanwhile, Amir Hamzah announced that SME Bank became part of the Malaysian development bank group starting May 1, 2025. "I believe the rationalisation of development financial institutions involving Bank Pembangunan Malaysia Bhd (BPMB), SME Bank, and EXIM Bank will create synergy, enabling more efficient capital distribution through a strengthened development financing ecosystem - delivering greater impact on a larger scale," he said. He noted that the integration of capabilities among these financial development institutions will enhance the effective implementation of key national economic policies and foster a more comprehensive and meaningful impact on the overall MSME ecosystem. "The process also opens up opportunities for targeted approaches, a more strategic focus, and more efficient resource mobilisation in supporting the growth and competitiveness of SMEs at both domestic and international levels," he added. Acting president and group chief executive officer of SME Bank, Datuk Dr Mohammad Hardee Ibrahim, said at a press conference that cost savings resulting from the bank's integration are only expected to materialise next year. For 2025, Mohammad Hardee said SME Bank will continue to operate independently until the end of this year. "We are already seeing synergies among the three entities. Previously, SME Bank may have focused on a specific segment within the SME community. However, with BPMB, we are now able to approach it from the perspective of a more comprehensive financing ecosystem. "As for EXIM Bank, we can support their efforts to facilitate export activities by our SMEs through the facilities it provides. Therefore, we can see strong synergies not only in the offerings but also in the institutional strengths,' he said. BPMB announced the acquisition of shares in EXIM Bank and SME Bank from the Minister of Finance (Incorporated) last month. The BPMB Group, now with EXIM Bank and SME Bank as its subsidiaries, forms an integrated entity aimed at delivering impact capital more comprehensively through the development financing ecosystem. The restructuring of the three entities was announced by Prime Minister Datuk Seri Anwar Ibrahim during the tabling of Budget 2024. - Bernama
The Sun
15 hours ago
- Business
- The Sun
SME Bank launches RM211m initiative to boost MSME growth in Malaysia
KUALA LUMPUR: Small Medium Enterprise Development Bank Malaysia Bhd (SME Bank) has introduced a RM211 million strategic initiative to drive sustainable and inclusive growth for micro, small, and medium enterprises (MSMEs). Finance Minister II Datuk Seri Amir Hamzah Azizan highlighted the government's commitment to SME development, with over RM1 billion allocated for 2025. Speaking at the 2025 Budget Initiative event, Amir Hamzah emphasised the programme's alignment with national priorities, including technology, ESG, tourism, and the halal sector. 'This reflects Malaysia's direction towards a modern, sustainable, and competitive economy,' he said. The initiative aims to strengthen MSME resilience, boost investor confidence, and support the MADANI economic framework. The launch was attended by Minister of Entrepreneur Development and Cooperatives Datuk Ewon Benedick. Amir Hamzah also announced SME Bank's integration into the Malaysian development bank group from May 1, 2025. This move, involving Bank Pembangunan Malaysia Bhd and EXIM Bank, is expected to enhance capital distribution and policy implementation for MSMEs. 'The rationalisation will create synergy, enabling efficient resource mobilisation for SME growth at domestic and international levels,' he added. The initiative underscores Malaysia's focus on digitalisation, industrial growth, and balanced economic progress.
