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96 BANK MUAMALAT MALAYSIA BERHAD

ECONOMIC

M2

ENTREPRENEUR DEVELOPMENT: FOSTERING GROWTH AND INNOVATION

Why This Matters
Entrepreneur development plays a vital role in stimulating government agencies and strategic partners, the Bank
innovation, fostering economic resilience, and generating facilitates access to financing for SMEs and Micro SMEs
employment opportunities, particularly at the grassroots through partly secured guarantee schemes. This support
level. Small and micro enterprises are often the backbone enables entrepreneurs to grow and sustain their businesses,
of local economies, yet they face challenges in accessing strengthening local economies and contributing to national
affordable and reliable financing. development goals. Our efforts are also closely aligned
with our mission to enhance financial inclusion and
Bank Muamalat recognises the importance of supporting improve the overall well-being of the communities
this segment as part of our commitment to inclusive and we serve.
sustainable economic development. By collaborating with

Our Approach

Bank Muamalat’s approach to entrepreneur development is grounded in collaboration, tailored financial solutions,
and alignment with national priorities. Through these efforts, Bank Muamalat continues to empower entrepreneurs as
key drivers of innovation, resilience, and inclusive growth across Malaysia.
Our strategy focuses on the following core areas:
• Strategic Collaborations - Partnerships with vendors, business networks, and government-linked agencies enable the
provision of partly secured guarantees, expanding financing access to SMEs and Micro SMEs with limited collateral capacity.
• Customer-Centric Engagement - The Bank engages directly with SME and Micro SME customers to better understand
their unique business needs. This allows us to tailor financing products and advisory support that promote long-term
business growth and sustainability.
• Alignment with Government Initiatives - Collaborations with national initiatives, enhance the availability of funding and
advisory resources for targeted groups, particularly Bumiputera entrepreneurs and underserved segments.

Key Actions and Outcomes
In 2024, Bank Muamalat made significant strides in These actions have led to meaningful outcomes that
supporting entrepreneur development through various reflect Bank Muamalat’s continued efforts to support
initiatives and collaborations: entrepreneurship as a cornerstone of inclusive economic
development:
• Offered the Ar Rahnu product as the primary financing
solution for individual entrepreneurs under Retail Banking, • A total of RM208.62 million in financing outstanding
particularly those operating as sole proprietors or was recorded as of FY2024, directly benefiting 6,445
managing small businesses. individual entrepreneurs. This reflects a growing demand
for Shariah-compliant financing options among sole
• Initiated the design of a new tailored product, Ar Rahnu proprietors and microenterprise owners, particularly
Business, aimed at further addressing the specific needs those in underserved and informal sectors who often face
of individual entrepreneurs and micro-business operators.
barriers in accessing traditional credit facilities.
• Enhanced outreach and advisory support by implemented • Throughout FY2024, the Bank disbursed RM332.74 million
focused outreach efforts through branches and partner in financing to individual entrepreneurs, enabling a wide
agencies to promote product awareness, financial spectrum of business owners to secure working capital
literacy, and advisory support for small business owners in for operational continuity, inventory expansion, equipment
underserved areas.
upgrades, and business diversification. This financial
support helped many entrepreneurs stabilise their
businesses in the face of inflationary pressures and
supply chain disruptions.