IFC and AFFIN BANK Launch $400M Partnership to Empower Malaysian MSMEs and Women Entrepreneurs

The International Finance Corporation and Affin Bank Berhad have launched a US$400 million partnership to narrow the financing gap for micro, small, and medium enterprises in Malaysia. This injection of capital specifically targets women-owned businesses and underserved regions, providing a critical liquidity boost for lenders focused on emerging market inclusion.

What was announced

The partnership centers on a US$400 million financing package provided by the IFC to Affin Bank. This capital is earmarked for micro, small, and medium enterprises (MSMEs) across Malaysia, with a strategic emphasis on businesses that have historically struggled to secure traditional bank funding. Specifically, the initiative prioritizes women-owned enterprises and businesses operating in regions outside of Malaysia’s primary urban hubs, such as Sabah and Sarawak, where the financing gap is most pronounced.

Under the framework of this agreement, Affin Bank will deploy the funds to eligible MSMEs to facilitate productive investment and improve overall business competitiveness. The initiative is expected to have a tangible impact on the local labor market, with projections indicating the creation of at least 42,000 jobs across the country over the next five years. This collaboration aligns with the bank’s broader "AFFIN Axelerate 2028" (AX28) plan, which seeks to position the institution as a leader in financial innovation within the Malaysian market. By combining the IFC’s international development finance expertise with Affin Bank’s local market presence, the partnership aims to strengthen local economies and increase the participation of underserved communities in the national economy.

"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,"

Allen Forlemu, Regional Industry Director, Financial Institutions Group, Asia Pacific at IFC.

The companies involved

The International Finance Corporation (IFC) is a member of the World Bank Group and serves as the largest global development institution focused exclusively on the private sector in emerging markets. It works with private enterprises in more than 100 countries, using its capital, expertise, and influence to create markets and opportunities. In this partnership, the IFC provides not only capital but also access to an international investor network and specialized development finance expertise.

Affin Bank Berhad is a prominent Malaysian financial institution that has aggressively expanded its footprint in the small and medium enterprise (SME) sector. The bank was recognized as the Best Bank for SMEs in Malaysia at the Asiamoney Best Bank Awards 2023. It has developed specific propositions for startups and women entrepreneurs, positioning itself as a key player in Malaysia’s inclusive finance landscape. The bank’s current strategic direction is guided by the AFFIN Axelerate 2028 (AX28) Plan, which focuses on innovation and creativity to capture market share in productive sectors of the economy.

What FF News has reported before

FF News has previously covered the IFC’s extensive efforts to drive financial inclusion through high-profile global partnerships. In 2026, the organization collaborated with major payment networks to mitigate lending risks, including a Visa and IFC Partner on $200M Initiative to Drive Global Financial Inclusion and a similar Mastercard and IFC Launch $500M Facility to Drive Digital Payments in Emerging Markets. These initiatives highlight the IFC's role in leveraging risk-sharing facilities to expand digital payment access. Additionally, the IFC has been active in supporting the broader investment ecosystem, as seen in its participation in the Ventures Platform Secures $64M First Close for Fund II to Power Africa’s Next Tech Wave and the Insurance Development Forum Announces First Close of Infrastructure Resilience Development Fund.

What this means

This US$400 million injection moves the needle by addressing the "missing middle" in Malaysia’s credit market, where MSMEs often fall between microfinance and corporate banking. By specifically earmarking funds for women-owned businesses and the regions of Sabah and Sarawak, the IFC and Affin Bank are forcing a shift in how risk is assessed in underserved territories. This move puts pressure on other Malaysian commercial banks to refine their SME offerings or risk losing ground in high-growth regional markets. Furthermore, the reliance on development finance institution capital suggests that despite a maturing fintech sector, traditional balance sheet lending remains the primary engine for large-scale economic inclusion in the region.