RM1bil additional micro-financing should come with faster approval: FMM

KUALA LUMPUR: The Federation of Malaysian Manufacturing (FMM) has called for a RM1 billion increase in micro-financing facilities for 2026, along with streamlined application processes, cost-effective financing terms, and rapid approval and disbursement. FMM President Jacob Lee Chor Kok emphasized the importance of these measures as SMEs continue to struggle with escalating operating costs and cash flow issues.

The government should also ensure accessibility to financing for eligible small manufacturers and manufacturing-related businesses, according to Lee. These efforts can help free up resources for businesses to maintain operations, retain employees, and invest in productivity-enhancing initiatives. In response to Prime Minister Datuk Seri Anwar Ibrahim's announcement of six measures to alleviate cost pressures on businesses and households in Budget 2027, Lee acknowledged the government's decision to provide immediate support to businesses facing operating cost pressures, cash-flow constraints, and a competitive business environment.

The FMM also supports the extension of the annual sales threshold for mandatory e-Invoicing to RM3 million from RM1 million, which will provide relief to smaller businesses by lowering compliance costs, administrative requirements, and resources needed to implement and maintain e-Invoicing systems.