Malaysia sets aside record RM57b in financing facilities for MSMEs in Budget 2027
Budget 2027 also includes a matching grant of up to RM5,000 for MSMEs seeking halal certification for the first time, Prime Minister Anwar Ibrahim announced.
According to Malay Mail, the Malaysian government has earmarked RM57 billion, the highest ever, as financing facilities for micro, small and medium enterprises (MSMEs).
A RM5,000 matching grant for first-time halal certification
Firms applying for halal certification for the first time can claim a matching grant of as much as RM5,000 under the Budget 2027 package. Prime Minister Datuk Seri Anwar Ibrahim announced the assistance when presenting the 2027 Budget.
Dr Chin Chee Seong, who is national president of the Small and Medium Enterprise Association of Malaysia, said it might lighten the financial load for micro and small businesses, especially those that cannot pay for certification themselves. He told Bernama: "The RM5,000 grant may appear modest, but it can offer meaningful assistance to micro-enterprises." In his view, what matters is how many MSMEs obtain halal certification and lift their sales through the assistance.
According to Chin, halal certification is more than a form of religious recognition, since it also provides a competitive edge by boosting how much consumers trust a firm's products and the way they are made. He said that, for MSMEs wanting to grow, certification might be required before they can get into supermarket chains, large retail networks or the food and beverage sector, and it could also open doors abroad.
Certification is only one step towards exports
Entrepreneurs must also satisfy target markets' rules on product safety, packaging, labelling, production capacity and whether the certification is recognised, so Chin emphasised that obtaining halal status is just a single stride toward export success.
In his view, halal certification programmes should be tied by the government to export development efforts carried out via the Malaysia External Trade Development Corporation (MATRADE), Halal Development Corporation Bhd (HDC) and other relevant agencies. Such coordination, he added, would help entrepreneurs go beyond certification to find buyers, reach distribution networks and enter export markets, ultimately lifting sales.
The Malay Chamber of Commerce Malaysia (DPMM) shared the view that government assistance could help entrepreneurs use halal certification to reach wider international markets. Its president welcomed the Prime Minister's announcement, saying the halal sector offers immense market potential. He added that halal certification issued by the Department of Islamic Development Malaysia (JAKIM) is widely recognised internationally.
