PENANG April 12, 2026 – Bagan Member of Parliament Lim Guan Eng today proposed five short-term financial measures worth RM5 billion to prevent more than 1.1 million micro, small and medium enterprises (MSMEs) from collapsing amid the global economic crisis.
The proposals were submitted through a formal letter to Prime Minister Datuk Seri Anwar Ibrahim during the Pakatan Harapan Presidential Council meeting chaired by the Prime Minister on April 8.
“MSMEs are now operating in survival mode. The war in the Middle East has triggered a sharp rise in oil prices, while volatility in raw material costs, supply chain disruptions, and soaring shipping and logistics expenses continue to burden these businesses,” Lim said in a press statement released yesterday.
He highlighted that suppliers of raw materials are increasingly refusing to offer credit terms of one to three months and are now demanding cash-on-delivery transactions only. Without access to raw materials, many MSMEs are unable to produce goods, severely affecting their cash flow as operating costs continue to rise sharply.
The main proposal is the provision of interest-free and collateral-free loans of RM50,000 to 100,000 selected MSMEs, involving a total allocation of RM5 billion.
The five short-term financial measures proposed are as follows:
- A moratorium on interest payments for all existing loans from financial institutions until the end of the year.
- A moratorium on additional taxes and compliance costs — including the suspension of Sales and Service Tax (SST) increases, the implementation of e-invoicing, and the 2% Employees Provident Fund (EPF/KWSP) contribution for foreign workers that took effect at the end of last year.
- Provision of interest-free and collateral-free loans amounting to RM50,000 to 100,000 MSMEs (totaling RM5 billion).
- Requiring both local and foreign investors to purchase at least 50% of their supplies from local producers, unless such goods are not available in the domestic market.
- Easing bureaucratic procedures and strict enforcement requirements during this period of economic crisis.
Lim stressed that the Malaysian government remains the only hope for MSMEs to reduce their cost burdens and revive business activities so they do not have to shut down by the end of this year.
“I hope these five short-term financial measures can be implemented immediately to give breathing space to MSMEs that are currently struggling with liquidity problems,” he said in the letter dated April 8, 2026, addressed to Prime Minister Anwar Ibrahim.
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