Malaysia’s Entrepreneur and Cooperatives Development Ministry is rolling out up to MYR 5 billion ($1.3 billion) in low-cost financing to support small and medium enterprises (SMEs) in scaling up and transitioning into higher value activities, national news agency Bernama reported on Thursday.

The financing, offered at interest rates of between three and five percent, will be channeled through licensed banks, prescribed financial institutions and development financial institutions, including Bank Rakyat and SME Bank, the report quoted the Minister Steven Sim Chee Keong as saying.

According to him, the financing is aimed at helping SMEs adopt high-technology operations, advance green and transition economy initiatives, and invest in automation, digitalization and tourism-related activities.

Sim said SMEs, including heritage businesses, should tap the available facilities and government-led prograes to strengthen resilience and expand over the long term.

He was speaking at the launch of the “Heritage Brands of Penang” publication in Penang on Thursday.

The minister reaffirmed the government’s commitment under the PowerUp10K campaign, a year-long initiative to uplift SMEs at various stages of development.

The program targets the disbursement of up to RM15 billion in low-cost financing, up from RM10 billion allocated previously.

Under the campaign, the ministry aims to support 10,000 businesses to scale up, while allocating at least RM100 million to train up to 100,000 entrepreneurs through capability-building programs.

It also targets raising SME value-added contribution to more than MYR 750 billion ($189 billion), alongside helping 100 local companies achieve MYR 100 million ($25.17 million) in revenue over the medium term.

As of February 2026, about MYR 2 billion ($500 million) in financing has already been approved under the initiative, Sim said.

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