KUCHING: The federal government’s RM1 billion boost to the Business Financing Guarantee Scheme (SJPP) is being welcomed as a timely move to support liquidity and confidence among SMEs hit by US tariffs — but its effectiveness may hinge on real-time responsiveness.
Sarawak Business Federation (SBF) secretary-general Datuk Jonathan Chai said while the expanded guarantee could benefit export-oriented SMEs, its adequacy depends on the scale of disruptions across manufacturing supply chains.
“This is not just about size. The funding mechanism must be flexible and scalable based on actual impact,” he said, noting a need for tailored support for firms embedded in global value chains.
Prime Minister Datuk Seri Anwar Ibrahim announced the move during a special Dewan Rakyat sitting, adding that RM500 million in additional soft loans via development financial institutions had also been approved.
Chai cautioned that accessibility remains a concern, citing limited awareness and capacity among smaller firms to navigate complex financing channels or meet collateral requirements. Without urgent streamlining, funds may remain underutilised.
He urged simplified documentation, alternative credit evaluations for informal businesses, and active outreach through local business networks.
On broader risks, Chai warned that US tariffs could erode price competitiveness for key export sectors like electronics, automotive parts, and textiles. To stay resilient, SMEs must diversify markets, invest in upskilling, embrace digitalisation, and deepen regional trade under RCEP. – BERNAMA
