MADANI Government Unveils RM5 Billion Microfinancing Plan to Empower Small Businesses in 2026

KUALA LUMPUR: The MADANI government will roll out more than RM5 billion in microfinancing facilities in 2026 to support over 400,000 micro-entrepreneurs nationwide, offering financing of up to RM100,000 for eligible applicants.

In a statement issued today, the Ministry of Finance Malaysia said the financing initiatives will be channelled through several government agencies and development financial institutions, including Amanah Ikhtiar Malaysia, Bank Simpanan Nasional, TEKUN Nasional, Majlis Amanah Rakyat, Agrobank and Bank Rakyat.

According to the ministry, certain financing schemes will offer rates as low as three per cent annually, making funding more accessible to small-scale entrepreneurs and traders.

Prime Minister Anwar Ibrahim said financial institutions involved have been instructed to strengthen outreach efforts to ensure assistance reaches as many small traders, hawkers and micro-entrepreneurs as possible, especially those struggling with limited business capital.

He stressed that the financing application process must be simplified, and the conditions should not place unnecessary burdens on applicants.

“The MADANI economy is built on the principles of compassion, justice and equality. These facilities must benefit those seeking lawful income opportunities and striving for a more dignified life,” he said in the statement.

Anwar, who also serves as finance minister, said the financing support is targeted at a wide range of groups, including small traders, night market hawkers, women entrepreneurs, youths, gig economy workers, technical and vocational education and training (TVET) graduates, small contractors, padi farmers and asnaf communities.

He clarified that the new microfinancing initiative is separate from the recently announced financing support for micro, small and medium enterprises (MSMEs), including the RM5 billion SME Special Relief Facility under Bank Negara Malaysia and another RM5 billion financing facility managed by Syarikat Jaminan Pembiayaan Perniagaan.

“In total, more than RM15 billion in financing support has been made available to MSMEs this year,” Anwar added.

The latest initiative reflects the government’s continued focus on strengthening grassroots businesses and improving access to affordable financing as part of broader efforts to boost economic resilience and inclusive growth nationwide.