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Following direct feedback from MSMEs, the Government has introduced immediate measures, including financing guarantees, e-invoice flexibility, and tax relief, to ease cost pressures and ensure business continuity.
The Malaysia Government has announced additional measures to support micro, small and medium enterprises (MSMEs) in coping with cost pressures, following continued engagement with businesses affected by the global energy crisis.
Anwar Ibrahim, Prime Minister and Minister of Finance recently engaged with MSMEs to gain a view of challenges on the ground, as well as to devise immediate measures to assist businesses impacted by rising operating costs and supply chain disruptions.
The Ministry of Finance said in light of the ongoing crisis, engagement has been extended across communities, including Bumiputera, Chinese, and Indian MSMEs, stressing that no economic segment is marginalised and every voice is heard and assisted in a targeted manner.
Global pressure from West Asia conflict
The Government highlighted that the ongoing conflict in West Asia is having a widespread impact on the global economy, including disruptions to energy supply, increased logistics and insurance costs, and continued pressure on input prices borne by traders, manufacturers, farmers, and other industry players.
Based on direct input from MSMEs, several immediate measures have been introduced to ease cost pressures and ensure business continuity.
Business Financing Guarantee Company (SJPP)
With the aim to support affected MSMEs in managing cost pressures and sustaining operations, the Government has introduced the following measures under the Business Financing Guarantee Company (Syarikat Jaminan Pembiayaan Perniagaan, or SJPP):
- An allocation of RM5bn under SJPP to support affected MSMEs, especially in the construction, agriculture and agri-food, logistics and transportation, and tourism sectors.
- The guarantee for affected sectors has been enhanced compared to the regular SJPP scheme, with financing coverage of up to 80% (normally 70%), and a guarantee period of up to 10 years (typically seven years).
- SJPP will also work with banks to facilitate the restructuring and rescheduling of loans, as well as provide targeted repayment assistance.
To date, the SJPP scheme has assisted more than 50,000 MSMEs, with financing guarantees said to have exceeded RM50bn between 2023 and 2025.
E-invoice flexibility
To support SMEs in managing compliance requirements, the Government has introduced flexibility in e-invoice implementation:
- An additional 12-month transition period for Phase 4 of the e-invoice implementation, until 31 December 2027 for businesses with annual sales between RM1mn and RM5mn.
- Permission to issue consolidated e-invoices without penalty during the transition period.
Import duty exemption for re-importation
The Government will also provide interim tax facilitation measures for businesses affected by export disruptions:
- Interim consideration of exemption from import duty and sales tax on the re-importation of Malaysian-made goods that are unable to complete the export process due to disruptions, until 31 December 2026.
- Continued monitoring and reviewing of the need to facilitate tax treatment for affected businesses.
Continued efforts to strengthen resilience
PM Anwar stressed that in the face of prolonged global pressure, the Government will continue to act proactively to ensure that the business ecosystem remains resilient and able to adapt to change.
He added that collaboration with financial institutions, industry players, and entrepreneurs will be strengthened so that every step taken helps maintain business operations and protect jobs.
"This is not a temporary situation; we need to be prepared for gradual and prolonged changes," he said.
These latest measures build on a series of recent announcements aimed at helping businesses and households manage cost pressures linked to the global energy crisis, including Selangor’s RM131mn Resilience Strengthening Package to address cost of living concerns, inflation, and food security, recent fuel price adjustments with reduced diesel and petrol rates, flexible work arrangements for eligible public service officers, as well as calls for private companies to consider implementing work-from-home arrangements to cope with fuel costs.
Taken together, these developments reflect ongoing efforts that seek to strengthen economic resilience, support business continuity, and protect jobs amid continued global uncertainty.
Lead image / Ministry of Finance Malaysia
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