BPMB Calls For Targeted Financing, MSME Support In Budget 2027

By Karina Imran

KUALA LUMPUR, Sept 28 (Bernama) -- Bank Pembangunan Malaysia Bhd Group (BPMB Group) has called for Budget 2027 to prioritise targeted measures that improve access to working capital and provide repayment flexibility for viable businesses affected by geopolitical developments and rising costs. 

The development financial institution said such measures should be complemented by initiatives that accelerate technology adoption, enhance productivity and strengthen long-term competitiveness. 

"This approach builds on financing repayment relief and tenure extensions already made available by BPMB Group to affected customers," the bank told Bernama. 

 

Five Priorities to Drive Growth

BPMB Group also proposed a focused combination of targeted fiscal incentives, accessible financing, government guarantees and risk-sharing arrangements across five national priority clusters, namely export markets, sustainability, transportation, entrepreneurial development and tourism.

It said stronger trade financing and export protection are needed to diversify Malaysia’s exports and facilitate entry into new markets, while sustainability-focused measures should include longer financing tenures and initiatives that improve project viability and attract private investment into transition-related activities.

For the transportation segment, the group emphasised the need for financing to support more efficient logistics networks, maritime capabilities and strategic connectivity.

Meanwhile, it said entrepreneurial development should centre on targeted assistance to help small and medium enterprises (SMEs) digitalise, raise productivity and achieve scale.

At the same time, tourism financing should focus on enhancing destinations, supporting infrastructure and strengthening regional economies.

 

Integrated MSME Internationalisation Pathway

BPMB Group said its Capital Access Programme, together with SME Bank’s SME Technology Transformation Fund, provides a pathway for companies to pursue organic and strategic expansion. 

Meanwhile, its subsidiary, EXIM Bank completes the pathway through financing and export protection for Malaysian businesses expanding internationally.

It added that the micro, small and medium enterprises (MSME) internationalisation should form an important part of the broader agenda, with a coordinated national framework that could connect financing, export protection, capacity building and market access. 

This would ensure that MSMEs have a clearer pathway to join global supply chains, establish international partnerships and diversify into frontier and non-traditional markets. 

"The objective is to develop more regional champions and future Malaysian multinational corporations while reducing export concentration," it said.

 

Digitalisation, Advisory and Capacity Building

In addition, the group said Budget 2027 should place greater emphasis on advanced digitalisation, business advisory, skills development and market access to enable MSMEs to improve their operations, adopt appropriate technologies and pursue sustainable growth.

It further proposed that technology funding be complemented by sustained structured advisory programmes involving accredited experts over 12-18 months to guide MSMEs in developing transformation roadmaps, selecting appropriate technologies, monitoring implementation and building internal capabilities. 

By bringing these elements together, BPMB Group said Budget 2027 could create a more integrated development pathway for MSMEs, combining technology, expertise and market access to raise productivity, strengthen resilience and support sustainable scale.

 

New Financing Solutions and Risk-Sharing Mechanisms

Moving forward, BPMB Group said it continues to assess market gaps that may benefit from new financing solutions in 2027, particularly in areas such as expanded trade financing and export protection to support Malaysian companies entering frontier and non-traditional markets, as well as scaling internationally and strengthening participation in regional and global supply chains.

The group said potential initiatives may also include risk-sharing mechanisms to improve project viability and crowd in private capital; transition financing to support productive and lower-emission investments; as well as longer-tenure facilities to facilitate maritime fleet renewal and strengthen domestic shipbuilding capabilities.

It highlighted that any new instrument would be designed to address clearly defined market needs and generate economic value beyond financing, building on existing initiatives undertaken by BPMB Group’s subsidiaries under Budget 2026.

"Through the complementary mandates of BPMB Group’s subsidiaries, EXIM Bank and SME Bank, we hope to translate National Budget 2027 priorities into strategic investment, business expansion and broader economic opportunities," it added.

-- BERNAMA