FMM urges fast-track access as government expands SME micro-financing to RM6b
SMALLER manufacturers and businesses are set to receive greater financial and administrative relief after the Government expanded its micro-financing pool by RM1 billion and raised the e-Invoicing threshold. The additional funding brings the total mi...
The Malaysian government has significantly increased its micro-financing pool to RM6 billion for 2026, providing SMEs with greater access to financing. This expansion comes alongside a raised e-Invoicing threshold, now at RM3 million, which will diminish the compliance burden for smaller businesses operating below this limit. Federation of Malaysian Manufacturers (FMM) president Jacob Lee Chor Kok emphasized the need for expedited access to funds and affordable financing rates, urging financial institutions and government agencies to simplify application procedures.
Lee highlighted that this financing boost could enable small manufacturers to better manage cash flow, retain employees, and invest in productivity amidst rising raw material and operational costs. Additionally, the government has lowered the e-Invoicing threshold from RM1 million to RM3 million, potentially sparing many micro and small enterprises from the expense of implementing e-Invoicing systems.
FMM called for clarification on businesses with annual sales between RM1 million and RM3 million to determine their eligibility under the new threshold, while offering technical support to those opting to maintain voluntary e-Invoicing. These measures are part of a six-point economic package announced on Aug 30, aimed at alleviating cost pressures for households and businesses ahead of the Budget 2027 presentation.
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