SJPP Sees MSMEs to Benefit From Stable Economy in 2026
SME Asia, 28 January 2026
Syarikat Jaminan Pembiayaan Perniagaan Bhd (SJPP) expects 2026 to be a better year for micro SMEs (MSMEs), supported by a more stable economic environment and the re-expansion of financing support to diverse business segments.
SJPP principal officer Datuk Fazlur Rahman Zainuddin said this is also driven by the government’s continued support via the business financing guarantee scheme and the housing credit guarantee scheme, helping MSMEs boost business growth through reinvestment in new technology, automation, digitalisation and capacity expansion.
“We hope that MSMEs will seize the opportunity to improve their businesses in terms of reinvesting in technology, new technology, automation, digitalisation or expanding their companies, perhaps opening another factory or branch,” he said.
Fazlur also mentioned that in 2025, 14,000 SMEs received financing approvals worth RM14 billion, despite the financing performance for the year showing a slight fall compared to the previous year.
In 2024, total financing approvals reached RM18.5 billion, including financing for mid-tier companies, before declining in 2025 following a shift in SJPP’s focus and global economic uncertainty.
“This decrease is due to two main factors. Firstly, in 2025, we are not focusing on the mid-tier company segment. Notably, in 2024, financing approvals for that segment were around RM3 billion to RM4 billion.
“Secondly, the economic uncertainty in 2025, including the tariff issue, caused many MSMEs to adopt a wait-and-see approach,” he said.
He added that the resolution of tariff issues, as well as a more stable global economic environment, are expected to pave the way for more positive prospects in 2026.
“For 2026, we expect the (economic) situation to be better than 2025, as the re-entry of mid-sized companies – especially export-oriented firms – would serve as catalysts for the supply chain, vendors and contractors among MSMEs,” he continued.
Meanwhile, Fazlur said the government guarantee allocation has been increased to RM30 billion for SJPP and RM20 billion for Syarikat Jaminan Kredit Perumahan Bhd (SJKP), in line with the government’s aspiration to expand access to financing for SMEs and first-time home buyers.
“I encourage SMEs and first-time home buyers to visit the nearest bank branch to obtain further information on government guarantees, thus increasing the chances of financing approval,” he said.
(Web Source: https://sme.asia/sjpp-sees-msmes-to-benefit-from-stable-economy-in-2026/)