SME Bank integration yields synergies, unveils RM211mil initiatives for MSMEs
KUALA LUMPUR: The integration of Small Medium Enterprise Development Bank Malaysia Bhd (SME Bank) with two other entities has proven to be a strategic success, fostering strong synergies and enhancing the bank's capacity to support micro, small, and medium enterprises (MSMEs) across the country.
"The integration has been very positive so far. Starting from the legal processes, we are now developing the business framework. The synergy among the three entities is evident," said SME Bank acting group president and chief executive officer Datuk Dr Mohammad Hardee Ibrahim.
Although it is still too early to quantify specific cost savings, he noted that tangible benefits from resource sharing are expected to emerge by 2026. For now, each entity will continue operating under its own budget until the end of 2028.
In tandem with the integration efforts, SME Bank has launched RM211 million worth of new strategic programmes aligned with the government's MADANI economic framework. These initiatives aim to boost the inclusivity, resilience, and sustainability of Malaysia's MSME ecosystem.
The launch was officiated by Finance Minister II, Senator Datuk Seri Amir Hamzah Azizan, alongside Entrepreneur Development and Cooperatives Minister Datuk Ewon Benedick.
Targeting high-impact areas such as technology, tourism, halal industries, and ESG-focused businesses, the programmes also place strong emphasis on empowering underserved communities, particularly B40 and Asnaf entrepreneurs, to ensure broader participation in economic development.
These initiatives represent a significant step in revitalising the MSME sector, said Hardee, adding that the programmes form part of SME Bank's RM1 billion strategic allocation under the upcoming National Budget 2025.
Key programmes include MySMELady 2.0, which offers up to RM3 million financing to support women entrepreneurs in expanding operations, boosting productivity, and enhancing market competitiveness; Umbrella Ecosystem Financing, offering up to RM1 million in funding to assist Bumiputera MSMEs and startups; and Dana Kelestarian Alam, allocating up to RM5 million in green financing for MSMEs involved in renewable energy, energy efficiency, green building, and sustainable transportation projects.
Maju Usahawan Madani aims to support 3,000 entrepreneurs with skills for sustainable growth, while SME Bank iTEKAD ISHRAF targets to increase sales by at least 10 per cent for 400 B40 and Asnaf entrepreneurs through training and resources.
As of May 2025, SME Bank has already approved RM2 billion in financing and is on track to meet its RM3 billion financing target for the year, Hardee said.
Beyond the new programmes, SME Bank continues to roll out a range of existing financing solutions such as the SME Technology Transformation Fund, HalalBiz Financing, and the Business Accelerator Programme under RMK-12.
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