Latest news with #BusinessFinancingGuaranteeScheme
The Star
12-05-2025
- Business
- The Star
Hong Leong Bank sees opportunities amid global trade challenges
PETALING JAYA: Hong Leong Bank (HLB) believes that the new global trade order, which presents challenges, also provides opportunities for businesses that are prepared to embrace change and strategically reposition themselves. Group managing director and chief executive officer Kevin Lam said the initial uncertainty following the 'new trade world order' that began on April 2, 2025, was quickly followed by dynamism and adaptability of Malaysian entrepreneurs in actively seeking new avenues and innovative solutions. 'During periods of such challenges, decisive leadership and strategic foresight become indispensable for fostering resilience and entrepreneurial responses to potentially significant shifts in the global environment. 'Small and medium enterprises (SMEs) are more than just a sector within our economy; they represent a vibrant ecosystem of innovation, job creation and sustained growth,' he said at a forum titled 'Beyond the Headlines on US Tariffs: What's Next for Malaysian Businesses and the Global Economy,' recently. Hosted by HLB, the forum addressed the evolving global trade dynamics, particularly US tariffs, for Malaysian SMEs and the broader global economy. He added that HLB 'understands that navigating this complexity requires more than just financial products'. 'It necessitates a holistic partnership. We are committed to empowering our clients through a multi-faceted approach that combines sophisticated financial tools with proactive knowledge dissemination,' said Lam. Lam noted that the proactive support announced by Prime Minister Datuk Seri Anwar Ibrahim, such as the increased Government Guarantees under the Business Financing Guarantee Scheme and enhanced soft loan facilities, demonstrated a clear commitment to assisting affected SME exporters.
The Star
09-05-2025
- Business
- The Star
Reduce red tape for SME growth, urges MCA
PETALING JAYA: Excessive red tape imposed by banks for business loan approvals, such as high collateral or impractical credit assessments, are among the stumbling blocks to the progress of small and medium enterprises (SMEs), says Datuk Seri Dr Wee Jeck Seng. The MCA vice-president said the government should streamline assistance given to SMEs and end the bureaucratic red tape. He said entrepreneurs have repeatedly lamented that the issues they face are not inadequacies in supportive policies but the difficulty in accessing them. Such conditions, according to Wee, contradict the government's goal of assisting SMEs and often deprive those most in need of the aid. He said government assistance for SMEs must be fast, simple and practical. He welcomed the government's recent initiatives in response to the ongoing global economic turbulence, emphasising the importance of effectively implementing these policies to reduce red tape and ensure aid reaches the SMEs. Wee said the announcement by Prime Minister Datuk Seri Anwar Ibrahim of several relief measures to mitigate the effects of the United States' reciprocal tariffs on global supply chains and SME exporters is timely for the industry. They include an additional RM1bil in government guarantees under the Business Financing Guarantee Scheme and RM500mil in soft loans via development financial institutions. 'The move is timely and necessary given the volatile international economic climate. 'If banks and financial institutions continue to apply outdated, conservative approaches – complicated procedures, rigid requirements and high barriers – then the good intentions behind these policies will be significantly weakened,' said the Tanjung Piai MP in a statement yesterday. Wee noted that the effects of the US tariff policy are reshaping global supply chains and placing pressure on Asean economies, and Malaysia, being highly export-dependent, is particularly vulnerable. 'The first to feel the impact are our SMEs, whose ability to absorb 'shocks' is much lower compared to larger firms. 'With global economic uncertainty rising, we cannot afford to rely solely on external recovery. 'We must instead focus on strengthening domestic economic momentum. 'Such action includes creating jobs, increasing public investment and upgrading infrastructure – measures that are essential to stimulating internal demand and protecting livelihoods,' he said. Wee said additionally, the government should also accelerate the rollout of approved development projects, especially those tied to public welfare, such as flood mitigation, school repairs and the construction of new clinics. He said such initiatives not only benefit the public but also inject vitality and generate lasting economic value into the construction and related sectors. 'SMEs form the backbone of our national economy and are the largest source of employment. The government and private sector must engage in genuine collaboration to face the challenges ahead. 'Only with effective, inclusive mechanisms can we ensure resilience and steady progress during these trying times,' said Wee.
Borneo Post
06-05-2025
- Business
- Borneo Post
Minister: Malaysian SMEs still lagging behind in digitalisation journey
The government has agreed to increase government guarantees under the Business Financing Guarantee Scheme by RM1 billion to assist SMEs affected by the recent US tariff announcement in securing loans from commercial banks. – Bernama photo KUALA LUMPUR: Most Malaysian small and medium enterprises (SMEs) are still trailing behind larger enterprises in their digitalisation journey, says Digital Minister Gobind Singh Deo. He adds that to address the issue, the ministry is working hard through initiatives like the Business Digitalisation Initiative (BDI), recently launched by the Malaysia Digital Economy Corporation, to help SMEs accelerate the adoption of digital technology in their operations. 'The Madani Government has also set aside RM50 million for digital matching grants for SMEs and digital grants for vendors. 'Global technology companies based in Malaysia, such as Microsoft and Alibaba Cloud, are working closely with the government to assist SMEs through multiple programmes,' he said in his keynote address at the CTOS SME Biz Day 2025 yesterday. Gobind says his ministry is working hard through initiatives like the BDI, to help SMEs accelerate the adoption of digital technology in their operations. – Bernama photo Explaining further, Gobind said the government was also committed to ensuring that SMEs would be prioritised in navigating current geopolitical challenges, with funds allocated for this purpose, as announced by Prime Minister Datuk Seri Anwar Ibrahim in Parliament on Monday. He said the government's initiatives have always been designed to provide SMEs with the resources, knowledge, and support they need to navigate the digital landscape effectively. 'Our vision is to create a digitally empowered Malaysia – where every business, regardless of size, can thrive in our national digital ecosystem. 'We are committed to fostering an environment that supports innovation, digital adoption, and ultimately, building up Malaysia as a strong digital nation,' added Gobind. On Monday, Anwar announced that the government had agreed to increase government guarantees under the Business Financing Guarantee Scheme by RM1 billion to assist SMEs affected by the recent US tariff announcement in securing loans from commercial banks. Additionally, another RM50 million would be allocated to the Malaysia External Trade Development Corporation (Matrade) to expedite efforts for SMEs to explore new markets through participation in international trade expos and exhibitions, as well as facilitating business matching with foreign buyers. – Bernama digitalisation Gobind Singh Deo small medium entreprises tariffs
New Straits Times
06-05-2025
- Business
- New Straits Times
Kedah chamber lauds plan to ease US tariff impact on SMEs
ALOR STAR: The Kedah Malay Chamber of Commerce (DPMM) has praised the federal government's swift response to mitigate US tariffs on Malaysian SMEs. Welcoming what it described as a holistic and timely approach, the chamber said the six initiatives announced by Prime Minister Datuk Seri Anwar Ibrahim are vital in strengthening the resilience of local SMEs and protecting the livelihoods of over 11 million workers. "We commend the Prime Minister's announcement during the special parliamentary session, which outlined six key government measures to address the repercussions of the retaliatory tariffs imposed by the United States. "These measures reflect the government's clear concern for the challenges currently faced by Malaysia's trade sector and its continued commitment to ensuring the resilience and sustainability of SMEs, which make up more than 97 per cent of all registered businesses in Malaysia and provide over 11 million jobs," the chamber told the New Straits Times. The chamber cautioned that in the short term, SMEs reliant on the US export market or its supply chains could face operational disruptions, rising costs, and business uncertainty. During the special sitting of the Dewan Rakyat yesterday, Anwar announced the government's decision to increase its guarantee under the Business Financing Guarantee Scheme by RM1 billion, to help SME exporters secure loans from commercial banks in the wake of the US tariffs. He also revealed that an additional RM500 million would be channelled as soft loan financing through development financial institutions, forming part of the government's six-pronged strategy to stabilise the economy and protect national interests in the short and medium term. Last month, the Kedah DPMM expressed serious concerns about the significant impact of the wide-ranging US tariffs, and called on the government to devise a targeted plan to cushion the blow for local SME players. Commenting further on Anwar's latest announcement, the chamber also welcomed the RM50 million allocation to the Malaysia External Trade Development Corporation (Matrade), noting that it would provide SMEs with greater opportunities to explore new international markets through participation in trade exhibitions and business matching sessions. "This move is crucial in reducing over-reliance on a single market such as the United States, while capitalising on emerging opportunities in rapidly expanding regional markets such as BRICS, the Gulf Cooperation Council (GCC), and Asean member states," the chamber said. Kedah DPMM also praised the government's assurance to maintain Bumiputera policies and protect local vendors during international trade negotiations. "This assurance reinforces confidence among local SMEs that their interests remain a government priority. It is essential to preserve a fair and inclusive business ecosystem, particularly for local enterprises still in their growth stages," it added.
The Star
06-05-2025
- Business
- The Star
A refined approach needed to support SMEs
PETALING JAYA: A more nuanced approach to supporting small and medium enterprises (SMEs) is needed, in addition to the latest measures announced by Prime Minister Datuk Seri Anwar Ibrahim in response to the tariffs imposed by the United States on Malaysia. In his speech to Parliament yesterday, Anwar announced that the government has increased the Business Financing Guarantee Scheme by RM1bil to assist SME exporters in obtaining loans from banks. The government has also increased soft loans from development financial institutions by RM500mil to support entrepreneurs. Currently, a baseline tariff of 10% has been imposed on all goods entering the United States from all over the world, while the 'reciprocal tariffs' announced on April 2, which in Malaysia's case stands at 24%, have been suspended for a 90-day period from April 9 pending discussions. SME Association of Malaysia national president Dr Chin Chee Siong told StarBiz that for financially sound businesses that need bridging loans, these measures would help. 'This is good for businesses that need funding immediately, for example, a tourism business that need cash flow to run tours. If the business is good, then it will be fine,' he said. Chin noted that SMEs account for at most 13% of the country's total exports, but the tariffs and the government's measures present opportunities for further growth. 'The government should encourage more joint ventures with foreign businesses, such as those from China, in which Malaysians take up the majority stake and run them,' he said. Chin pointed out that the funding from these measures can be better deployed by enabling Malaysian businesses to invest in these ventures. 'Malaysians will not mind bearing the risk if they are running the business. New technology and knowledge will be brought in, and there will be employment opportunities for Malaysians,' he added. UOB Kay Hian Wealth Advisors Sdn Bhd head of investment research Mohd Sedek Jantan said financing alone would do little to address the root cause, as Malaysian businesses must reposition themselves to compete with low-cost manufacturers in China and Vietnam. 'Unless financing is explicitly tied to productivity upgrades, export diversification, or supply chain reconfiguration, its impact will be marginal,' he noted, adding that transition grants, market-entry subsidies, or strategic tax relief would do more to catalyse the structural shifts needed. On whether SMEs should take on more loans, Sedek said: 'The government's reliance on credit-based solutions assumes that exporters are facing a liquidity issue, when in fact, many are grappling with a profitability crisis triggered by weak demand, tighter margins and intensifying competition from China's lower-cost goods.' Bank Muamalat Malaysia Bhd chief economist Mohd Afzanizam Abdul Rashid does not believe the measures will impact Malaysia's fiscal deficit target of 3.8% of gross domestic product this year. He explained that the extra RM1bil are guarantees, while grants, which are a form of transfer that need not be repaid, would have an impact. He further noted that government assistance aimed at accelerating productive capacity – such as capacity-building programmes for SMEs to make their businesses more resilient – would be preferable to subsidies for consumption, which benefit people immediately. 'At the end of day, it is a policy choice and whether the government can afford to fund the programmes,' Mohd Afzanizam said.
