SME financing gaps highlighted in Southeast Asian investment forums

At the Indonesia Impact Investment Summit 2026 in Jakarta, the Indonesia Impact Alliance (IIA) and Bappenas addressed a significant financing gap for micro, small, and medium enterprises (MSMEs). The IIA estimates a yearly funding gap of US$ 50.8 billion for businesses requiring between US$ 100,000 and US$ 2 million. This segment, often called the ‘missing middle,’ consists of businesses that have outgrown early-stage funding but lack the scale to meet the US$ 1 million minimum requirements typical of large impact investors.

In Malaysia, Bank Negara Malaysia (BNM) Governor Datuk Seri Abdul Rasheed Ghaffour emphasized that the Islamic finance industry must expand its approach to support micro, small, and medium enterprises (MSMEs). He noted that success should be measured by economic productivity and sustainable development rather than just asset growth. To address challenges in skills, business protection, and market access, BNM highlighted the iTEKAD social finance initiative, which has supported nearly 16,000 participants through entrepreneurship and protection programs.