KUALA LUMPUR, June 2025 — The Malaysian government has launched a new Digital Credit Guarantee Scheme (DCGS) valued at RM2 billion, aimed at strengthening the backbone of the national economy — micro, small, and medium enterprises (MSMEs).
This initiative is a key part of Budget 2025’s push to make financing more accessible to underserved SMEs, particularly those operating in digital, halal, agritech, and green sectors.
💡 Scheme Overview
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Total Allocation: RM2 billion
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Guarantee Body: Credit Guarantee Corporation Malaysia Berhad (CGC)
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Target Audience: SMEs with limited or no collateral
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Loan Sizes: RM50,000 – RM500,000
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Partners: Maybank, CIMB, Bank Islam, and various digital lenders
Financing will be available through fintech platforms and traditional banks starting July 2025, with applications open via a centralized SME Digital Financing Portal under Bank Negara Malaysia (BNM).
🗣️ What the Government Says
Deputy Finance Minister Lim Hui Ying noted:
“This is a critical bridge for digitally inclined SMEs to move forward, scale operations, and take advantage of both regional and global markets.”
The DCGS is expected to benefit over 12,000 SMEs by end-2025, particularly in e-commerce, logistics, halal food, and service-based sectors.
📈 Malaysia’s SME Landscape in 2025
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SMEs account for 97.4% of all businesses in Malaysia
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Contribute over 38% of national GDP
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Employ nearly 7.3 million people
Yet, limited access to affordable financing and collateral-free lending remain major growth bottlenecks, especially post-pandemic.
🧾 Key Features for Borrowers
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Low interest rates capped at 4% p.a.
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No collateral required for loans below RM250,000
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Up to 90% government guarantee on loan value
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Free digital business training bundled with financing via MDEC & SME Corp
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