IFC and Affin Bank to advance financial inclusion for MSMEs

International Finance Corporation (IFC), a member of the World Bank Group, and Affin Bank Berhad (AFFIN BANK/the Bank) has partnered to expand access to finance for micro, small and medium enterprises (MSMEs) across Malaysia, with a particular focus on women-owned businesses and enterprises operating in regions where financing gaps continue to constrain growth and economic participation.

At the centre of the partnership is a US$400 million financing package for AFFIN BANK, aimed at broadening access to capital and strengthening support for MSMEs and other underserved business segments. Under the agreed framework, the Bank will channel funding to eligible MSMEs to promote productive investment, enhance business competitiveness and contribute to more inclusive economic development.

“Small businesses are a vital driver of jobs and economic opportunity in Malaysia. We estimate that this partnership could create at least 42,000 jobs across Malaysia over the next five years, while expanding access to finance for women entrepreneurs and enterprises operating outside major urban centers, especially the ones where the financing gaps are wider. We welcome working with a partner of AFFIN BANK’s focus, experience, and expertise and appreciate their visionary leadership in supporting the growth of Malaysian MSMEs, including those owned by women, and uplifting underserved communities in places like Sarawak and Sabah,” said Allen Forlemu, IFC Regional Industry Director, Financial Institutions Group, Asia Pacific.

Datuk Wan Razly Abdullah, President & Group Chief Executive Officer of AFFIN Group, said, “MSMEs are at the heart of Malaysia’s economy, creating jobs, driving innovation and supporting communities across the country. Through this collaboration with IFC, we are expanding our ability to support businesses that have the potential to grow, particularly women-owned enterprises and businesses in regions where access to financing remains more limited. We believe greater access to capital is essential to advancing socio-economic development, strengthening local economies and creating opportunities for more Malaysians to participate in the nation’s growth.”

“Our partnership with IFC broadens AFFIN’s access to international capital and development finance expertise, enabling us to expand financing for Malaysian businesses. It brings together IFC’s international investor network with our deep understanding of the Malaysian market, creating opportunities to expand our customer base and deploy capital into productive sectors of the economy. Guided by our AFFIN Axelerate 2028 (AX28) Plan, this partnership propels our journey towards becoming the Most Creative and Innovative Financial Company in Malaysia.”