Funding Societies: RM270 Mln Budget 2027 Allocation To Boost Sme Access To Private Capital
KUALA LUMPUR, Oct 11 (Bernama) -- The RM270 million allocation under Budget 2027 to help small and medium enterprises (SMEs), mid-sized companies and social enterprises attract private capital through equity crowdfunding (ECF) and peer-to-peer (P2P) financing platforms will lower the cost of financing and barriers to accessing capital, according to Funding Societies Malaysia.
Funding Societies Malaysia country head Chai Kien Poon said private investors would, in turn, instil risk discipline and bring more capital to businesses that banks are unable to reach.
“We also welcome up to RM1 billion in the Bumiputera Agenda Steering Unit (TERAJU) financing for Bumiputera contractors.
“Procurement gives contractors the order, particularly those in the G1 to G4 categories, and with it a chance to build their businesses. But financing is essential to delivering the projects. They need mobilisation capital to buy materials and pay wages before they are paid,” he said in a statement.
Funding Societies Malaysia looks forward to continuing its fruitful partnership with TERAJU.
In addition, Chai said the flat RM10 stamp duty on P2P financing agreements, effective from Jan 1, 2027, to Dec 31, 2030, would lower the cost of accessing capital, particularly for underserved and unserved micro, small and medium enterprises (MSMEs), amid rising costs and market uncertainty from oil price volatility and supply chain disruptions.
Meanwhile, the guarantees provided by Syarikat Jaminan Pembiayaan Perniagaan Bhd (SJPP) and Credit Guarantee Corporation Malaysia (CGC), announced in the Budget, would lower risk premiums and continue to draw private institutional funds to P2P platforms, as we have experienced.
“Over time, this would also lower the cost of capital for businesses. The next step is to extend a portion of these guarantees to more non-bank channels, including digital platforms,” he said.
Chai said Funding Societies Malaysia would like to build on partnership with CGC and explore a complementary partnership with SJPP to further improve MSMEs’ access to capital, and support job retention and creation.
“The priority now is deployment: clear eligibility, fast processes, and reaching MSMEs without collateral or a long banking history, and those who need small-ticket and short-term revolving financing.
“We look forward to working with the government and the Securities Commission to ensure this support reaches the businesses that need it,” he added.
-- BERNAMA