KUALA LUMPUR: Stronger efforts are needed to reduce financing costs for micro, small and medium enterprises (MSMEs) and improve access to capital for businesses that remain underserved by the mainstream financial system amid rising global uncertainties.
Entrepreneur and Cooperatives Development Minister Steven Sim Chee Keong said many MSMEs, especially micro and small enterprises, still struggle to secure financing because of insufficient credit histories and elevated borrowing costs.
He said the issue has become more pressing amid ongoing global supply disruptions linked to geopolitical and geo-economic uncertainties following the Middle East conflict, which have contributed to higher operating costs for MSMEs.