by Chai Kien Poon, Country Head
Funding Societies Malaysia welcomes the RM270 million in Budget 2027 to draw private capital into ECF and P2P platforms, for MSMEs, mid-sized companies and social enterprises. Developmental capital from the government lowers the cost of financing and the barriers to accessing capital. Private investors, in turn, instil risk discipline. Together, they bring more capital to businesses that banks can’t reach.
We also welcome up to RM1 billion in TERAJU financing for Bumiputera contractors. Procurement gives contractors the order, particularly G1 to G4 contractors, and with it a chance to build their businesses. But financing is essential for them to deliver. They need mobilisation capital to buy materials and pay wages before they are paid. We look forward to continuing our fruitful partnership with TERAJU.
The flat RM10 stamp duty on P2P financing agreements, from 1 January 2027 to 31 December 2030, reduces the cost of accessing capital, particularly for underserved and unserved MSMEs. It matters more now, with rising costs and market uncertainty from oil prices and supply chain disruption.
The SJPP and CGC guarantees announced in the Budget will lower the risk premium and continue to draw private institutional funds to P2P platforms, as we have experienced. Over time, this also lowers 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. We would like to build on our partnership with CGC and explore a complementary partnership with SJPP. This would 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 make sure this support reaches the businesses that need it.
