KUALA LUMPUR, 11 October 2025 – Small and medium enterprises (SMEs) and startups are set to benefit from RM13.15 billion in targeted financing and support measures under Budget 2026, as Malaysia doubles down on innovation, sustainability, and digital transformation to strengthen its business ecosystem.
The government announced a RM10 billion financing allocation through SME Bank, Bank Pembangunan Malaysia Berhad (BPMB), and TEKUN Nasional to support business expansion, working capital, and technology adoption among SMEs. The financing will focus on high-impact sectors, including manufacturing, green technology, and digital services, areas seen as critical to driving Malaysia’s next phase of industrial growth.
In addition, a RM3 billion Green Investment Fund will be launched to encourage businesses, particularly SMEs, to adopt sustainable practices and invest in renewable energy solutions. This fund complements the broader Green Technology Financing Scheme (GTFS) and aims to catalyse Malaysia’s transition toward a low-carbon economy, offering competitive financing for companies venturing into solar, hydrogen, and bioenergy projects.
To accelerate digital transformation, RM150 million in digitalisation grants will be made available to help smaller enterprises upgrade their operations with cloud computing, e-commerce solutions, and cybersecurity tools.
The initiative underscores the government’s commitment to ensuring SMEs remain competitive in the era of Industry 4.0 while promoting innovation and efficiency across all business segments.
Analysts have praised these measures as a timely intervention, noting that SMEs account for 97% of all business establishments in Malaysia and employ nearly half of the nation’s workforce. By aligning financing with sustainability and digitalisation goals, the government is helping to future-proof the SME sector while supporting startups at the forefront of Malaysia’s innovation economy.
The combined package of financing and grants also reflects Malaysia’s strategic emphasis on building a resilient, inclusive, and green economy, consistent with the Madani Economy framework and the 13th Malaysia Plan.
With stronger access to capital, enhanced digital tools, and support for environmental stewardship, SMEs and startups are well-positioned to play a leading role in Malaysia’s industrial transformation and long-term growth story.
