Malaysia's Kuskop Pours RM10.7 Billion Into Entrepreneurs

Malaysia's Entrepreneur Development and Cooperatives Ministry (Kuskop) has channelled RM10.7 billion to nearly 300,000 entrepreneurs nationwide in the first nine months of this year. Minister Steven Sim announced the figure at the closing ceremony of the 2026 National Hawkers and Small Traders Day (HPPK) Carnival at Stadium Kajang, Kuala Lumpur.

The disbursement forms part of the RM15 billion allocated to the ministry for 2026. Seven financing agencies under Kuskop distributed the funds.

"Of the RM10.7 billion channelled through seven financing agencies under Kuskop, RM3.14 billion was in the form of microcredit financing," Sim said.

Who received the money?

The bulk of the recipients sit at the smallest end of the business spectrum. Sim said roughly 200,000 recipients — two-thirds of the total — were hawkers, small traders and shopkeepers.

"About 200,000 recipients, or two-thirds of the total, were hawkers, small traders and shopkeepers," he said.

Prime Minister Datuk Seri Anwar Ibrahim officiated the Kajang event. Selangor Menteri Besar Datuk Seri Amirudin Shari, Education Minister Datuk Seri Fadhlina Sidek and Chief Secretary to the Government Tan Sri Shamsul Azri Abu Bakar also attended.

What does the 2027 Budget change for small businesses?

Sim called the 2027 Budget, which Anwar announced on Oct 9, a budget for entrepreneurs. He pointed to tax cuts as the headline measure.

"I believe the budget is particularly strong. Income tax rates for entrepreneurs, including small traders, have also been reduced. These are the lowest tax rates for traders in history," Sim said.

Business groups have echoed that reading. Sim noted that some micro, small and medium enterprise (MSME) associations have labelled the 2027 Budget "the SME Budget, the MSME Budget or the Entrepreneurs' Budget." He said the recognition reflected the government's efforts to provide businesses with assistance based on their needs.

How large is the entrepreneurship allocation?

The entrepreneurship sector will receive its largest-ever allocation next year: RM67.9 billion. Sim framed that spending as a buffer against a difficult global economy.

"We know that conditions are challenging at present due to the global economic crisis," he said.

"However, with the decisive measures introduced under the 2027 Budget, I am confident that next year, local entrepreneurs will not only be focused on business survival but will also have room to plan for growth," Sim said, referring to the record RM67.9 billion set aside for the sector.

Why the numbers matter

The first nine months of 2026 already put Kuskop more than two-thirds of the way through its RM15 billion full-year allocation, with microcredit accounting for RM3.14 billion of the outlay. If the pace holds, hawkers and small traders — the two-thirds majority of recipients so far — stand to remain the ministry's core constituency as the 2027 Budget's tax cuts and record RM67.9 billion entrepreneurship allocation take effect.