SME Bank to channel RM2.8bil under 2027 Budget to boost businesses
KUALA LUMPUR: SME Bank will channel about RM2.8 billion under the 2027 Budget to strengthen the competitiveness of Malaysian businesses across seven priority sectors.
The initiatives form part of more than RM7 billion in government-mandated programmes allocated through SME Bank's parent Bank Pembangunan Malaysia Bhd.
SME Bank chief executive officer Samad Majid Zain said the initiatives will help businesses adopt technology, improve productivity, operate sustainably and expand into new markets.
He said the bank will leverage Bank Pembangunan's capabilities to support enterprise development, aligning with the government's economic reform agenda and the 13th Malaysia Plan.
Of the allocation, RM558 million will support entrepreneurship development through financing and grants for Bumiputera entrepreneurs, women-owned micro, small and medium enterprises (MSMEs), franchise and licensing businesses, and underserved groups.
Another RM500 million will support tourism businesses, comprising RM200 million under the Special Fund for Tourism and RM300 million under the Tourism Programme.
Dana Kelestarian Alam 2.0 will receive RM600 million to finance companies undertaking low-carbon initiatives and investing in sustainable business operations.
Meanwhile, RM500 million will be channelled through the Technology Adoption Fund to support technology adoption, digitalisation and Industry 4.0 initiatives, including industrialised building system component contractors, manufacturers and installers.
A further RM400 million will support transportation, logistics, maritime, oil and gas, and aerospace businesses including maintenance, repair and overhaul activities.
The Local Acceleration and Growth Programme will receive RM200 million to provide affordable financing for manufacturers, service providers and local vendors to improve capacity, productivity and competitiveness.
The fund is also to strengthen their participation in the supply chains of multinational corporations and major Malaysian companies.
Separately, a RM3 million grant under the Business Export Programme will help Bumiputera MSMEs in the services and manufacturing sectors strengthen their export readiness and access overseas markets.
Samad said SME Bank would prioritise measurable development outcomes, additionality and effective programme delivery, in line with Bank Negara Malaysia's Performance Measurement Framework.
He said the initiatives were aimed at helping businesses become more competitive, create jobs and contribute to stronger communities.
