AIM Says 2,248 Micro-Entrepreneurs Have Scaled Up Into SMEs

By Olivia Hart

Malaysia’s Deputy Entrepreneur Development and Cooperatives Minister Datuk Mohamad Alamin said 2,248 Amanah Ikhtiar Malaysia micro-entrepreneurs had scaled up into SMEs this year. Financing across AIM, TEKUN Nasional and Bank Rakyat reached RM3.14 billion through 272,927 facilities as of September this year, he said.

What does the scale-up count show?

Alamin said the scale-ups demonstrated the effectiveness of microfinancing in helping entrepreneurs expand their business capacity. He was answering Datuk Adnan Abu Hassan (BN-Kuala Pilah), who asked about the effectiveness of the 2026 Budget allocation. His question concerned stronger micro-enterprise capacity, SME scale-up, and the targets and achievements recorded so far this year.

Alamin’s answer disclosed neither the allocation nor the scale-up target. The answer also omitted the starting number of AIM businesses needed to calculate a conversion rate.

Takeaway: The scale-up count is concrete, but its success rate remains unknown without a denominator.

Repeat financing accounted for RM2.63 billion of the RM3.14 billion total, covering 233,164 facilities, Alamin said. He described repeat financing as evidence that micro-entrepreneurs could sustain their businesses while obtaining more capital to expand.

“From the perspective of effectiveness, the high number of repeat financing facilities reflects the ability of micro-entrepreneurs to sustain their businesses while securing additional capital to expand their operations,” Alamin said.

How strong is repayment performance?

Alamin reported the following changes in non-performing loan (NPL) ratios:

• TEKUN Nasional: The ratio fell from 12.66% in 2023 to 6.60% as of September this year.
• Bank Rakyat: The ratio fell from 15% to 11% over the same period.
• AIM: The ratio was zero in 2025.

The comparison has two limits. Bank Rakyat’s and TEKUN Nasional’s figures are September readings, while AIM’s zero covers 2025. Alamin’s statement did not disclose loan balances, which would show the absolute exposure behind each ratio.

Takeaway: Lower NPLs support the repayment claim, but the release lacks a common date and portfolio size.

Does support extend beyond financing?

Alamin said the ministry, through the National Institute of Entrepreneurship (INSKEN), had provided training, mentoring and consultancy programmes that benefited 2,765 micro-entrepreneurs as of September. He did not break down participation by programme or link that support to the 2,248 businesses that became SMEs.

Takeaway: Non-loan support reached 2,765 micro-entrepreneurs, but its contribution to business growth remains unproven.

Who gets financing and market access?

Datuk Dr Ahmad Yunus Hairi (PN-Kuala Langat) raised financing access by ethnicity and cooperation with foreign investors in a supplementary parliamentary question. Alamin said the ministry offered various financing schemes for non-Bumiputera entrepreneurs, including two allocations for Indian entrepreneurs:

• TEKUN Nasional: RM100 million allocated for Indian entrepreneurs.
• Indian Community Entrepreneur Development Scheme (SPUMI): About RM153 million allocated.

Alamin’s answer gave no overall financing total for non-Bumiputera entrepreneurs and no figures for foreign-investor participation.

Mohamad said SME Corp Malaysia offered business-matching programmes to help entrepreneurs secure strategic partners locally and abroad, broaden market access and create opportunities for expansion. The ministry did not report participation, investment or revenue results for those programmes.

“So, those seeking further information can visit the Hebatkan Perniagaan Malaysia portal, which provides a wealth of information to help entrepreneurs identify suitable programmes and connect with potential investment partners to penetrate new markets,” Alamin said.

Takeaway: Targeted finance and partner matching could help more firms grow, but the ministry reported no results.

The next test for the 2026 Budget is whether repeat capital and lower defaults sustain the 2,248 businesses now counted as SMEs. Alamin disclosed neither a 2026 allocation nor a scale-up target against which to judge that outcome.