SME Business Funding in Malaysia

SME Business Funding in Malaysia

SME Business Funding in Malaysia

The Local SME in Malaysia , employs up to 70% of the total work force.They are the economy back bone.

Due to globalisation and international trade competition, to stay ahead above the water. SME might need to improve operation productivity, cost competitiveness and value added  to the Customer.

SME Business Funding in Malaysia

Unlike a decade ago, where Malaysia , is the main destination for foreign direct investment for setting Factories and Services.With the rising competition from neighbouring countries such as  Indonesia, Thailand, and Vietnam .Malaysia is no longer the 1st choice destination in ASEAN for outsource Manufacturing .

Without Large scale Manufacturing , station here this will affect SME business and the entire economy ecosystem in Malysia. In order to stay competitiveness , innovation and productivity increase is crucial.To Upgrade , SME need access of fund to invest.

SME Business Funding in Malaysia can be divided into 3 category

  1. Loans
  2.  Tax Rebates
  3. Grants

In order to improve the competitiveness and productivity of SME in Malaysia.The Government has a few scheme to assist local SME.

To Find SME business  Funding in Malaysia,there are a few channel which SME owner in Malaysia could seek help from.In this article i will explain what are the schemes available , where to find it and how do you apply for it.

Business Accelerator Programme 2.0 (BAP 2.0)

Eligibility to apply

  • Applicant must be Small & Medium Enterprise (SME).
  • Companies/Businesses with qualifying rating of SCORE 2 or higher.
  • Company must be at least 60% owned by a Malaysian during the period of financing.
  • Full time business operator.
  • Companies/Businesses with at least 6 months in operation.

Loan Specifications

  1. Minimum financing amount $50 000 , Maximum Loan Amount $1000 000
  2. Repayment up to 10 years including grace period.
  3. Interest Rate 4.0%

SME Business Funding in Malaysia

Where to apply

1. SME Corporation Malaysia

2. SME Bank Group

Enrichment & Enhancement Programme (E2) 

Eligibility to apply

  • Applicant must be Small & Medium Enterprise (SME).
  • Companies/Businesses with qualifying rating of SCORE 2 or higher.
  • Company must be at least 60% owned by a Malaysian during the period of financing.
  • Full time business operator.
  • Companies/Businesses with at least 6 months in operation.

 

Loan Specifications

  1. Minimum financing amount $ 5 000 , Maximum Loan Amount $50 000
  2. Repayment up to 10 years including grace period.
  3. Interest Rate 4.0%

The Scheme also provide grant up to 50% of the projects,but only restricted to  product testing & calibration, and website development. Maximum grant value up to RM 100 000.

Where to apply

  • SME CORP / Bank Rakyat Malaysia

Reference , Department of Standards Malaysia

Shariah Compliant SME Financing Scheme (SSFS) 2.0

Eligibility to apply

  • Applicant must be Small & Medium Enterprise (SME).
  • Companies/Businesses with qualifying rating of SCORE 2 or higher.
  • Company must be at least 60% owned by a Malaysian during the period of financing.
  • Full time business operator.
  • Companies/Businesses with at least 6 months in operation.
  • Comply to one or more of the following at the point of application:
    • SME rated with at least 2 stars under SCORE
    • Microenterprise (ME) rated with at least Level 1 under MCORE
    • Certified under 1-InnoCERT
    • Certified under National Mark of Malaysian Brand
    • Accorded the MSC status by MDeC
    • Accorded the Bio-Nexus status by Malaysian Biotechnology Corporation
    • Certified under the Green Tech Cert under Malaysian Green Technology Corporation
    • TeraS selected SMEs under TERAJU

Loan Specifications

  1. Up to RM5 million per SME based on:
  2. the approved amount aggregated based on all financing provided under this scheme from all Participating Financial Institutions; and
  3. common controlling shareholders and/or directors except for nominee directors appointed by VCs.
  4. SMEs may obtain financing above RM5 million, however only the first RM5 million will be eligible for the 2% profit rebate.

Reference, Shariah Compliance SME Financing.

Soft loan for SMEs

Eligibility to apply

  • Applicant must be Small & Medium Enterprise (SME).
  • Companies/Businesses with qualifying rating of SCORE 2 or higher.
  • Company must be at least 60% owned by a Malaysian during the period of financing.
  • Full time business operator.
  • Companies/Businesses with at least 6 months in operation.

Loan Specifications

  1. Maximum  financing amount $50 000
  2. Repayment varied based on usage
  3. Interest Rate varied base on usage

Reference. SME Soft Loans

 

Enabling ePayment for SMEs and Micro Enterprises

Reference  Click Here

 

Now you have an idea on how to find SME Business Funding in Malaysia, hope that helps you out in expanding your business.

Check out SME Portal Singapore.