Budget 2027 Strengthens MSMEs’ Resilience Against Global Economic Challenges – Sim

KUALA LUMPUR: Budget 2027 focuses on strengthening the resilience of micro, small and medium enterprises (MSMEs) in facing global economic challenges by improving access to financing, reducing costs and enhancing the efficiency of government service delivery.

Minister of Entrepreneur and Cooperatives Development Steven Sim Chee Keong said the commitment was reflected in the provision of RM57 billion in financing facilities for the sector, up from RM50 billion previously, marking the highest allocation of its kind in history.

He said the government recognised the pressures faced by MSMEs amid global economic uncertainties, including rising energy costs and supply chain disruptions beyond the country’s control.

“We are fully aware that amid the various crises taking place, small and medium enterprises (SMEs) must be given the flexibility and breathing space to overcome these challenges.

“We cannot control energy prices, nor can we control certain supply chains. However, at the very least, we can still manage domestic factors within Malaysia,” he said during his speech at the Enterprise 50 (E50) Awards ceremony here tonight.

Also present was SME Corp Malaysia Chief Executive Officer Rizal Nainy.

Sim also highlighted measures relating to the implementation of the latest minimum wage increase, which provides exemptions for MSMEs.

However, he stressed that efforts to ease the burden on employers did not mean the government was abandoning its goal of creating high-paying job opportunities for Malaysians.

“We all want Malaysians to have access to high-paying jobs, but with the world facing multiple crises, MSMEs must also be given room to navigate these challenges,” he said.

Sim said the success of MSMEs was a key determinant of the country’s economic performance.

He expressed optimism that 2027 would be a better year for Malaysia’s MSME sector, supported by various government initiatives and the resilience of local entrepreneurs.

Meanwhile, Rizal said SME Corp Malaysia’s E50 Business Matching Programme had successfully generated RM420 million in potential sales.

He said the two-day programme, held in conjunction with the awards ceremony, aimed to expand MSMEs’ access to export markets and create new business collaboration opportunities.

“This year’s E50 programme has adopted a more meaningful approach, with its scope expanded to include the E50 Export Conference and the E50 Business Matching Programme,” he said.

Rizal also revealed that 160 nominations were received for this year’s E50 Awards, the highest number recorded since the awards were introduced in 1997.

He said the increase reflected growing recognition of E50 as a prestigious platform showcasing the achievements of high-performing MSME companies in Malaysia.

At the ceremony, 50 MSME companies were named recipients of the E50 Awards in recognition of their achievements, performance and ability to expand their businesses.

The awards recognise MSME excellence in business growth, competitiveness, innovation and governance.

Bernama