Bank Negara Malaysia has detailed financial industry initiatives under Budget 2027, led by an additional MYR 5 billion for the SME Stabilisation Relief Facility, doubling its allocation to MYR 10 billion. The new funding is expected to provide affordable working capital to about 9,000 more small and medium enterprises, including microenterprises, affected by the economic impact of the Middle East conflict. Financing approvals under the initial allocation reached MYR 3.8 billion across more than 6,800 SME accounts as of Sept. 30, 2026. The facility will remain available across all economic sectors until June 30, 2027, or until fully used. Other measures will expand working capital access for small G1-G4 contractors undertaking government projects and extend the MYR 10 nominal stamp duty treatment for CAKNA I and II financing agreements through Dec. 31, 2030. MediAsas will be offered to the public in January 2027, with premiums or contributions eligible for income tax relief and MYR 40 million allocated for vouchers for employees of SMEs with fewer than 75 workers. Banks will also phase in basic credit cards from October 2026, offering a no-frills product with a maximum interest or profit rate of 14% a year and allowing existing cardholders to transfer eligible outstanding balances.
Bank Negara Malaysia doubles SME relief facility to MYR 10 billion, expands consumer finance measures
Bank Negara Malaysia is adding MYR 5 billion to the SME Stabilisation Relief Facility, doubling its allocation to MYR 10 billion and extending availability until June 30, 2027, or full use. Budget 2027 measures also expand financing support for small government contractors and provide tax relief and MYR 40 million in vouchers for the MediAsas health plan. Banks will phase in basic credit cards with a maximum interest or profit rate of 14% a year from October 2026.