The International Finance Corporation (IFC), a member of the World Bank Group, and AFFIN BANK have announced a partnership to expand access to finance for micro, small and medium enterprises (MSMEs) across Malaysia.
At the centre of the partnership is a US$400 million long-term financing package for AFFIN BANK, which aims to broaden access to capital for MSMEs and other underserved business segments.
The financing will prioritise women-owned businesses and enterprises operating in regions where access to finance remains constrained, with the partnership intended to support productive investment, business competitiveness and more inclusive economic development.
Expanding Access to MSME Financing
Under the agreed framework, AFFIN BANK will channel funding to eligible MSMEs to help businesses access capital for productive investment and growth.
The partnership comes as financial access remains an important consideration for smaller businesses seeking to expand, particularly those operating outside major urban centres.
Allen Forlemu, IFC Regional Industry Director, Financial Institutions Group, Asia Pacific, said small businesses remain an important driver of employment and economic opportunity in Malaysia.
“We estimate that this partnership could create at least 42,000 jobs across Malaysia over the next five years, while expanding access to finance for women entrepreneurs and enterprises operating outside major urban centers, especially the ones where the financing gaps are wider,” Forlemu said.
He added that IFC welcomed the opportunity to work with AFFIN BANK to support the growth of Malaysian MSMEs, including women-owned businesses, while uplifting underserved communities in areas such as Sarawak and Sabah.
Supporting Women-Owned Businesses and Underserved Regions
A key focus of the partnership is improving financing access for women entrepreneurs and businesses operating in areas where financing gaps are more pronounced.
AFFIN Group President and Group Chief Executive Officer Datuk Wan Razly Abdullah said MSMEs are central to Malaysia’s economy, contributing to job creation, innovation and local communities.
“Through this collaboration with IFC, we are expanding our ability to support businesses that have the potential to grow, particularly women-owned enterprises and businesses in regions where access to financing remains more limited,” Wan Razly said.
He said greater access to capital could contribute to socio-economic development, strengthen local economies and create opportunities for more Malaysians to participate in the country’s growth.
The partnership therefore combines access to international development finance with AFFIN BANK’s local market presence and existing SME banking capabilities.
Connecting International Capital with Malaysian Businesses
The agreement will also broaden AFFIN’s access to international capital and development finance expertise.
According to Wan Razly, the partnership brings together IFC’s international investor network with AFFIN’s understanding of the Malaysian market, creating opportunities to expand its customer base and deploy capital into productive sectors of the economy.
The initiative is also aligned with AFFIN’s AFFIN Axelerate 2028 (AX28) Plan, which guides the Group’s longer-term business strategy.
Wan Razly said the partnership would support AFFIN’s ambition to become the “Most Creative and Innovative Financial Company in Malaysia”.
Building on AFFIN BANK’s SME Franchise
AFFIN BANK has continued to develop its SME banking franchise through targeted propositions for start-ups, women entrepreneurs and growing businesses.
The bank was recognised as Best Bank for SMEs in Malaysia at the Asiamoney Best Bank Awards 2023.
Through the new IFC partnership, AFFIN BANK aims to further expand its capacity to serve MSMEs, particularly businesses operating in segments and regions where access to finance remains constrained.
The US$400 million financing package is expected to strengthen the flow of capital to eligible Malaysian MSMEs, supporting business investment, competitiveness and broader participation in economic growth.
For businesses outside major urban centres and women-owned enterprises in particular, the partnership places greater emphasis on addressing financing gaps and widening access to capital.
