Kuala lumpur: Help is readily available for businesses affected by the conflict in West Asia, especially small and medium enterprises (SMEs), said Bank Negara Malaysia (BNM) Governor Datuk Seri Abdul Rasheed Ghaffour. He emphasized that the current challenges differ significantly from the COVID-19 crisis, which saw a nationwide lockdown impacting nearly all sectors of the economy.
According to BERNAMA News Agency, Abdul Rasheed noted that the present impact is more concentrated on sectors heavily reliant on oil, crude-based products, and diesel. This has prompted BNM to introduce targeted measures such as special funds to provide working capital for businesses facing operational disruptions and cash flow challenges. Loan repayment assistance, including restructuring and rescheduling options, is also available for affected borrowers.
Abdul Rasheed encouraged businesses experiencing repayment difficulties to engage with their banks early to explore relief options, which may include pausing instalments temporarily and revising repayment schedules. In April, BNM introduced the SME Stabilisation Relief Facility (SME SRF), a RM5 billion financing initiative aimed at assisting micro, small, and medium enterprises (MSMEs) impacted by the ongoing West Asia conflict. The facility is intended to complement ongoing assistance provided by the banking industry as MSMEs navigate heightened global uncertainties.
Applications for the SME SRF will open on May 15, 2026, through participating banks. MSMEs can refer to BNM's website for a list of participating financial institutions or contact their respective banks directly. The Association of Banks in Malaysia (ABM), the Association of Islamic Banking and Financial Institutions Malaysia (AIBIM), and the Association of Development Finance Institutions of Malaysia (ADFIM) have welcomed the move.
The banking industry has reaffirmed its commitment to supporting customers and ensuring that viable businesses maintain access to financing and assistance. Efforts are underway to engage customers and raise awareness of available support measures proactively. In a statement issued in April, the associations urged MSMEs affected by the conflict to engage with their banks early to explore suitable solutions, including repayment assistance, restructuring options, and working capital support.