The finance ministry said this followed engagement sessions today led by Prime Minister Anwar Ibrahim with MSME representatives, during which he sought to understand the challenges they face amid the global energy crisis.

“The conflict has disrupted energy supplies, increased logistical and insurance costs, and continues to put pressure on input prices borne by traders, manufacturers, farmers and other industry players.

“Guided by direct input from MSMEs, the government is announcing several immediate measures to reduce cost pressures and ensure business continuity,” it said in a statement.

The ministry said the RM5 billion allocation under SJPP will especially support MSMEs in the construction, agriculture and agro-food, logistics and transport, and tourism sectors.

“Guarantees for these affected sectors have been enhanced with coverage of up to 80% and guarantee periods of up to 10 years.

“SJPP will also work with banks to ease the structuring and rescheduling of loans under SJPP and provide targeted loan repayment aid,” it said.

The ministry said more than 50,000 MSMEs have received aid through RM50 billion in financing guarantees from 2023 to 2025.

It said the grace period for businesses with annual turnovers of RM1 million to RM5 million to adopt e-invoicing has been extended by a year to Dec 31, 2027.

The ministry is also considering import duty and sales tax exemptions until Dec 31 this year for reimports of Malaysian goods that could not complete the export process because of disruptions from the conflict.

“The government will continue monitoring and studying the need to ease taxation processes for businesses affected by the conflict,” it said.