Malaysia Launches $1.3 Billion Low-Cost Financing to Propel SMEs into Green and High-Tech Sectors

Malaysia's Entrepreneur and Cooperatives Development Ministry has announced a major financing initiative to empower small and medium enterprises (SMEs).

Up to $1.3 billion (MYR 5 billion) in low-cost loans at 3-5% interest rates will be available to drive SME growth.

Focus on Green Tech and Innovation

The program targets SMEs transitioning into high-technology operations, green and transition economy initiatives, automation, digitalization, and tourism.

It forms part of the expanded PowerUp10K campaign, a year-long effort to uplift businesses at various development stages.

Previously allocated RM10 billion, the campaign now aims for up to RM15 billion in total financing, with RM2 billion already approved by February 2026.

Key Institutions and Support Mechanisms

Funds will be channeled through licensed banks, prescribed institutions, and development banks like Bank Rakyat and SME Bank.

Minister Steven Sim Chee Keong encouraged SMEs, including heritage businesses, to utilize these facilities for long-term resilience and expansion.

The initiative includes RM100 million for training up to 100,000 entrepreneurs through capability-building programs.

It seeks to support 10,000 businesses in scaling up while boosting SME value-added contributions beyond MYR 750 billion ($189 billion).

Over the medium term, the government aims to help 100 local companies achieve RM100 million ($25 million) in annual revenue.

This push positions Malaysia at the forefront of sustainable economic transformation, addressing global shifts toward green and digital economies.