Bagan MP Lim Guan Eng has called on the government to urgently introduce RM5 billion in interest-free loans and a one-year loan moratorium to support struggling micro, small and medium enterprises (MSMEs).
In a statement, Lim argued that strong banking sector profits should be used to justify broader financial assistance for small businesses facing increasing economic strain.
He said the decision by Bank Negara Malaysia to maintain the Overnight Policy Rate (OPR) at 2.75 per cent has helped banks record sustained earnings growth, while many MSMEs continue to struggle with cash flow pressures.
Lim proposed that the government channel interest-free loans ranging from RM50,000 to RM100,000 for MSMEs, alongside a one-year moratorium on existing business loans to ease financial burdens.
He also highlighted worsening conditions in the manufacturing sector, citing concerns raised by industry groups over rising costs, supply chain disruptions and weakening demand amid global geopolitical tensions.
According to Lim, feedback from industry players suggests that 68 per cent of manufacturing firms are experiencing cash flow pressure, with 13 per cent describing it as severe enough to affect supplier payments.
He warned that the sector is facing what he described as a deepening crisis, with potential risks to employment and business sustainability if conditions continue to deteriorate.
Lim further pointed out that Malaysia’s banking sector recorded profits of RM54.8 billion in 2025, an increase of RM6.5 billion or 13.5 per cent compared to the previous year.
He questioned whether a portion of these strong earnings should be redirected to support MSMEs, arguing that small businesses should not be left to bear the brunt of the current economic challenges while banks continue to profit significantly.
