by Theleaders | July 7, 2026 1:09 pm
KUALA LUMPUR, July 7 — The government has approved up to RM6 billion in loans and guarantees to small and medium enterprises (SMEs) under two programmes to contain the impact of the war in the Middle East, Prime Minister Datuk Seri Anwar Ibrahim told Parliament today.
Under the SME Stabilisation Relief Facility, RM1 billion in loans has been approved by Bank Negara Malaysia (BNM) since its roll-out last month, benefiting some 1,500 companies, Anwar said.
Meanwhile, up to RM4.9 billion in financing guarantees has been approved by Syarikat Jaminan Pembiayaan Perniagaan (SJPP), the Tambun MP told the Dewan Rakyat during Prime Minister’s Question Time.
“Microcredit loans through agencies such as BSN, Agrobank and Tekun also reached RM2.2 billion, benefiting 195,000 micro entrepreneurs,” Anwar said.
SMEs often struggle to secure bank loans due to a lack of collateral. To address this, the government deployed SJPP — a government-owned company – to act as a guarantor.
It backs up to 80 per cent of loan amounts and absorbs the risk, prompting commercial banks to approve the credit rapidly.
In April, Anwar warned that Malaysia’s economy would face major fallout due to soaring shipping and insurance costs if Iran shut down the Strait of Hormuz and the war destroyed oil plants and refineries.
The US-Israeli aggression against Iran had caused severe shortages of critical imports such as agricultural fertilisers and raw materials, threatening to drive up domestic operating costs across multiple sectors.
The Anwar government announced several immediate measures to confront the supply crunch, including diversifying critical import sources such as gas from Russia and Turkmenistan, and fertiliser components from Australia.
It also took steps to reduce costs for SMEs, including increasing the diesel quota and offering rental discounts for petty traders.
“Regarding the diesel subsidy reform, the Government has also taken into account the survival of small businesses,” Anwar said.
“To meet the additional needs of small businesses, individual owners of pickup trucks and jeeps can apply for an extra 100 litres of BUDI Diesel quota, bringing the total eligibility up to 300 litres.”
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