The Ministry of Entrepreneur Development and Cooperatives (KUSKOP) introduced a major economic boost for Indian businesses with the launch of the Indian Entrepreneur Capital and Economic Stimulus Package (Modal Usahawan dan Rangsangan Ekonomi India (MUDRA), which is a allocation of over RM220 Million.
This was announced by Minister YB Steven Sim Chee Keong, the initiative aims to strengthen Micro, Small and Medium Enterprises (MSMEs) as well as cooperatives within the Indian community. The recent allocation is an increase of RM60 million compared to the RM160 million disbursed in 2025, showing a strong demand and positive response to previous finance schemes.
Multi-Agency Support Framework
The MUDRA initiative is implemented through 5 agencies under KUSKOP, which offers a targeted financial support in different segments:
Tekun Nasional: RM 120 Million under the Indian Community Entrepreneur Scheme (Usahawan Masyarakat India) (SPUMI)
SME Bank: RM50 Million through the Vanigham Financing Scheme (Skim Pembiayaan Vanigham)
Bank Raykat: RM15 Million under the Bank Rakyat Indian Entrepreneur Financing- i-Scheme (Skim Bank Rakyat Indian Entrepreneur Financing-i (BRIEF-i)
Amanah Ikhtiar Malaysia (AIM): RM27 Million for the Indian Women Entrepreneur Empowerment Fund Programme (Dana Program Pemerkasaan Usahawan Wanita India) (PENN)
Malaysia Cooperative Commission ( Suruhanjaya Koperasi Malaysia) (SKM): RM11 Million combined through Bakti MADANI and the SKM Revolving Capital Fund. Bakti MADANI was RM 1 Million whilst the SKM Revolving Capital Fund (Tabung Modal Pusingan SKM (TMPSKM) was RM10 Million.
Encouraging Early Impact
As of 31st March 2026, the programme has shown promising results, with RM33.48 Million approved, benefiting 1,805 Indian entrepreneurs around Malaysia.
Steven Sim emphasized that MUDRA is more than just short-term financial aid. Instead it is a strategic effort to enhance the competitiveness and sustainability of Indian businesses, particularly in facing challenges such as global economic and energy uncertainties.
The initiative aligns with KUSKOP’s broader mission of creating a holistic and inclusive entrepreneurial system. By supporting business growth, innovation, and resilience, the ministry aims to ensure balanced and sustainable socio-economic development which aligns with Malaysia MADANI vision.
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