Budget 2026: KUSKOP Strengthens Malaysia’s Inclusive Economic Drive — MSMEs and Cooperatives Take Center Stage

By Mohd Khairy Abdullah @ DG Henry
KOTA KINABALU (Sabah, Malaysia), 12 October 2025 — Malaysia’s MADANI Budget 2026 underscores the government’s renewed determination to fortify the nation’s economic resilience by empowering micro, small, and medium enterprises (MSMEs) and the cooperative movement — two pillars that anchor the country’s people-driven economic model.

Under the leadership of Datuk Ewon Benedick, the Ministry of Entrepreneur Development and Cooperatives (KUSKOP) has emerged as a key institutional driver of inclusive growth, with an allocation of RM1.015 billion — a significant increase of RM200.3 million compared to the previous year.

Ewon emphasized that the higher allocation reflects the government’s confidence in KUSKOP’s role as a strategic catalyst for building a resilient, balanced, and regionally inclusive entrepreneurial ecosystem.

“This budget reaffirms the government’s commitment to widening access to financing, strengthening the cooperative movement, and advancing a truly inclusive economy. It ensures that no community, particularly in rural Sabah and Sarawak, is left behind in Malaysia’s national progress,” he said.

The MADANI Budget 2026, tabled by Prime Minister and Finance Minister Datuk Seri Anwar Ibrahim, amounts to RM470 billion, focusing on fiscal discipline, subsidy reform, and people-centered development as part of Malaysia’s economic renewal agenda.

Ewon described KUSKOP’s mandate as extending far beyond financial disbursement — towards constructing a holistic support architecture for sustainable entrepreneurship. The ministry now positions itself as a coordinating hub that bridges federal agencies, financial institutions, and private-sector stakeholders in developing Malaysia’s “people’s economy.”

Key initiatives under KUSKOP and its agencies include:

• RM20 million for the Tamu Desa (Rural Market) Project in Sabah and Sarawak to expand trading spaces and infrastructure for local entrepreneurs.
• RM250 million investment by UDA Holdings Berhad for the development of wakaf (Islamic endowment) lands in Penang and Kedah — merging Islamic economic principles with modern development.
• RM100 million dedicated fund for Halal MSMEs through SME Bank, reinforcing Malaysia’s position as a regional halal franchise hub.
• RM2.5 billion in micro-loans through TEKUN Nasional and Bank Simpanan Nasional (BSN) to support rural and low-income entrepreneurs.
• RM50 million for cooperative enterprise financing via the Malaysian Cooperative Commission (SKM).
• RM200 million under the SME Bank Regional Champions Program, helping Bumiputera SMEs expand into export markets.
• RM230 million additional allocation to Amanah Ikhtiar Malaysia (AIM) — raising its total fund to RM2.9 billion to empower women micro-entrepreneurs.
• RM270 million in women entrepreneurship financing through Bank Rakyat, SME Bank, BSN, and MARA.
• RM12 million for the Tunas Usahawan Belia Bumiputera (TUBE) youth entrepreneurship program via SME Corp.
• RM9 million for franchise industry development through PERNAS.
• RM220 million to support Indian community socio-economic programs through MITRA, TEKUN, and AIM.

Ewon reaffirmed that KUSKOP’s implementation of Budget 2026 will be guided by the principle “we facilitate, not frustrate”, reflecting an administrative shift towards efficiency, accountability, and empathy in service delivery.

“Our ‘whole-of-government’ approach ensures every agency operates within one cohesive ecosystem. The objective is not merely faster financing, but stronger competitiveness and sustainable capacity for our local entrepreneurs,” he added.

Economists note that this signals a transformative evolution in Malaysia’s economic governance — repositioning KUSKOP from a fund distributor to an architect of inclusive economic empowerment.

Within the broader policy landscape, Budget 2026 consolidates the MADANI Economic Framework, balancing growth and social equity. KUSKOP’s initiatives are integral to this vision, driving Malaysia’s shift from resource-based expansion to a community-driven, values-based economic model.

International observers have noted that Malaysia’s focus on MSMEs, cooperatives, and halal industry ecosystems could strengthen its regional leadership in sustainable and ethical entrepreneurship — aligning economic goals with cultural and social equity principles.

“This budget not only demonstrates the government’s compassion for the people, but also strengthens the capacity of MSMEs and cooperatives to lead regional growth,” Ewon concluded.

With a renewed focus on inclusion, empowerment, and sustainability, KUSKOP under Datuk Ewon Benedick stands at the forefront of Malaysia’s economic transformation — steering the nation towards a future where growth is shared, and prosperity is human-centered.