KUALA LUMPUR: More than RM500 million in microfinancing has been approved between May 15 and June 26, benefiting over 30,000 entrepreneurs, said Finance Minister II Datuk Seri Amir Hamzah Azizan.

He said the financing was channelled through institutions including Amanah Ikhtiar Malaysia (AIM), Agrobank, Bank Simpanan Nasional (BSN), Bank Rakyat, Majlis Amanah Rakyat (MARA) and Tekun Nasional, as part of a broader RM5 billion microfinancing facility for micro-entrepreneurs affected by rising costs.

Amir Hamzah said the global economic environment, influenced by geopolitical tensions and instability in West Asia, has triggered rising living costs and ongoing challenges for traders, as well as micro, small and medium enterprise (MSME) operators.

“The negative effects of geopolitical tensions and instability in West Asia have triggered a chain reaction on the global economy, including a surge in the cost of living and ongoing challenges also felt by traders, MSME operators,” he told the Dewan Rakyat during minister’s question time.

He was responding to Datuk Andi Muhammad Suryady Bandy (BN-Kalabakan), who asked about immediate government measures to ensure small traders and MSMEs are not further burdened by global economic pressures.

On broader support measures, Amir Hamzah said the government’s guarantee scheme through Syarikat Jaminan Pembiayaan Perniagaan (SJPP) offers a reduced guarantee fee of 0.75 per cent per annum, with coverage of up to 80 per cent and a guarantee period of up to 10 years.

He said the scheme acts as a credit enhancement mechanism to help viable MSMEs with limited collateral access financing for working capital and capital expenditure.

The SJPP programme, with a guaranteed capacity of up to RM5 billion, targets key sectors including agriculture, agro-food, logistics, transport, construction and tourism.

Overall, he said government financing support for MSMEs, including loan facilities and guarantees, totals RM15 billion through banks and government agencies, ensuring businesses continue to access working capital to sustain operations.