PM announces measures to ease cost pressures on micro, small and medium enterprises amid global energy crisis

PUTRAJAYA, April 20 – Prime Minister and Finance Minister Datuk Seri Anwar Ibrahim today continued his engagement session with micro, small and medium enterprises (MSMEs) to gain direct insight into challenges on the ground and to formulate immediate steps to assist businesses affected by the global energy crisis, which is driving up operating costs and disrupting supply chains.

The move is part of ongoing efforts by the Madani Government since the start of the crisis. Last week, Anwar engaged with Bumiputera MSMEs, and today the session was extended to Chinese and Indian business communities, underscoring that no economic segment will be marginalised and that every voice is heard and provided with targeted assistance.

The spillover effects of the West Asian conflict are now having widespread impacts on the global economy through energy supply disruptions, higher logistics and insurance costs, as well as sustained pressure on input prices borne by traders, manufacturers, farmers and other industry players.

Based on direct input from MSMEs, the government today announced several immediate measures to ease cost pressures and ensure business continuity.

Under the Business Financing Guarantee Corporation (SJPP), a guarantee allocation of RM5 billion will be made available to support affected MSMEs, particularly in the construction, agriculture and agri-food, logistics and transport, as well as tourism sectors. The guarantee for these affected sectors has been enhanced compared to the standard SJPP scheme, with financing coverage of up to 80 per cent (normally 70 per cent) and a guarantee period of up to 10 years (normally 7 years). SJPP will also work with banks to facilitate restructuring and rescheduling of SJPP loans as well as targeted repayment assistance.

To date, the SJPP scheme remains one of the government’s main instruments in supporting MSME continuity, with more than 50,000 MSMEs having been assisted through financing guarantees exceeding RM50 billion for the period 2023 to 2025.

On e-invoicing, an additional 12-month transitional period for Phase 4 implementation has been granted until 31 December 2027 for businesses with annual sales between RM1 million and RM5 million, including permission to issue consolidated e-invoices without penalty during that period.

Regarding import duty exemption for re-importation, interim consideration has been given for exemption of import duty and sales tax on re-importation of Malaysian-made goods that are unable to complete the export process due to disruption from the conflict, until 31 December 2026. The government will continue to monitor and review the need to facilitate tax treatment for businesses affected by the West Asian conflict.

Anwar stressed that in facing prolonged global pressures, the government will continue to act proactively to ensure the business ecosystem remains resilient and able to adapt to change. He added that the government will further strengthen cooperation with financial institutions, industry players and entrepreneurs so that every measure taken truly helps sustain business operations and protect the jobs of the people, noting that this is not a temporary situation and that preparations are needed for gradual and prolonged change.

In line with the Madani Economy framework, the government is committed to continuing to strengthen the nation’s economic resilience in the face of global uncertainty, while ensuring that assistance is delivered in a targeted manner to those most in need.