Tekun Nasional speeds up financing approvals for micro-entrepreneurs in Malaysia

Traders Union
All News
Financial Institutions
Tekun speeds up financing approvals

Highlights

Tekun Nasional now processes financing approvals in four days and disburses loans within five working days, compared with seven to ten days previously.
Financing applications below RM20,000 can receive a decision within 24 hours, and online applications have been open since 7 August.
From 2023 to September 2024, Tekun Nasional's non-performing financing ratio fell to 8.60%, while micro-financing transactions reached 1.27 million worth RM14.56 billion.

This article was translated from the original. Read the original version by our correspondent here.

Faster processing targets and digital channels

As reported by The Edge Malaysia, Deputy Minister of Entrepreneur Development and Cooperatives Datuk Mohamad Alamin said Tekun Nasional has now agreed to process financing approvals within four days and disburse loans within five working days. He said efforts to accelerate the process had previously reduced the approval period in stages from 10 days to seven days.

According to him, the government is reviewing ways to help entrepreneurs obtain financing as quickly as possible because they need capital urgently. He was responding to a supplementary question in the Dewan Rakyat on measures to improve the delivery system of the Ministry of Entrepreneur Development and Cooperatives, particularly through Tekun Nasional, to facilitate and speed up access to financing for micro-entrepreneurs.

Mohamad also said Tekun Nasional aims to decide on financing applications below RM20,000 within 24 hours. Since 7 August, applicants have also been allowed to submit applications online without having to visit the agency's office.

Impact on financing and loan quality

In a response on financing access between 2023 and 2026, Mohamad said 8,008 micro-entrepreneurs had progressed into the small or medium enterprise category. From 2023 to September 2024, Kuskop, through Amanah Ikhtiar Malaysia, Tekun Nasional and Bank Rakyat, recorded 1.27 million financing transactions for micro-entrepreneurs worth RM14.56 billion.

Of that total, AIM and Tekun Nasional provided 212,910 new financing facilities worth RM2.19 billion, while 1.05 million repeat financing facilities worth RM12.13 billion were also recorded. The data shows that the scale of working capital support and follow-on financing in the micro-enterprise ecosystem remains substantial.

Mohamad said Tekun Nasional's non-performing loan ratio fell from 12.66% in 2023 to 8.60% as of September 2024. Bank Rakyat's non-performing financing ratio also declined from 15% to 11% over the same period, while AIM recorded a ratio of 0.09% in 2023, 0.02% in 2024 and zero in 2025.

In our earlier report on SME Corp Malaysia's Sinar Programme, we examined how the initiative supports MSMEs affected by supply chain disruptions and rising operating costs through a combination of financing, grants and business support. The article also highlighted the focus of Budget 2027, which allocates substantial funds to strengthen the MSME ecosystem, including digitalisation, automation and market access.

This material may contain third-party opinions, none of the data and information on this webpage constitutes investment advice according to our Disclaimer. While we adhere to strict Editorial Integrity, this post may contain references to products from our partners.