12 Government Grants For

SME Malaysia You Can

Apply
By

Where to find grants for SME in Malaysia?

For some entrepreneurs, they need some money to fund

or scale up their businesses.

There are several ways to get financial aid for your

business. One of them is government grants for SME
Malaysia.

Scroll down to see the list of SME grants you can apply.

12 Government Grants For SME

Malaysia
1) Soft Loan Schemes for Services Sector
(SLSSS)

The SLSSS is aiming to provide financing aid for start-up

enterprises and service sectors who want to enhance
their services to higher value.

It is a financial loan for CAPEX and working capital, with

an interest rate of 4% per annum for SMEs and not
exceeding RM5 million.

Eligibility Specification:

Integrated companies under Companies Act 1995

Companies registered under Registration of
Business Ordinance 1956
Services providers registered under Certificate of
Practice any Professional Regulatory Bodies.
Malaysians held at least 60% of equity.
Own a valid premises license.

2) Soft Loan for SMEs (SLSME)

The SLSME is assisting loans for start-up enterprises

and existing companies including to support fixed
assets and working capital financial.

Eligibility Specification:

SMEs incorporated under the Companies Act 1965

SMEs incorporated under Registration of Business
Ordinance 1956
Malaysians held at least 60% of equity
Owns a valid premises license
Owns SMEs with shareholdings which not exceeding
20% held by public-listed companies. Only if
applicable.

Focusing on sectors of areas such as Manufacturing,

Manufacturing-Related Services and ANY Services,
but EXCLUDE insurance and financial services.

The financing amount given under the scheme depends

on the type of finance provided – Project, Fixed Assets,
Working Capital and IT Hardware / Software.

The financial minimum amount is RM 50,000, but the

interest rate is 4% per annum yearly.

Project: RM5 millions (maximum)

Fixed Assets: RM5 millions (maximum)

Up to 90% of the cost of new assets

Up to 65% for used / reconditioned equipment,
which are not more than 5 years old.

Working Capital: RM3 millions (maximum)

Up to 100% for Purchase Revolving Credit

Next, up to 90% for Term Financing
Up to 80% for Sales Revolving Credit

IT Hardware / Software: RM 50,000 (maximum)

Up to 90% of the cost of new assets

Up to 65% for used / reconditioned equipment,
which are not more than 5 years old.

3) Tabung Usahawan Siswazah (TUS)

The TUS or also known as graduate entrepreneurs’

scheme is providing loans to these fresh entrepreneurs
to keep off with their start-up business.

By this way, more people would be interested to start the

business.

The fund loan given by the scheme depends on the

nature of enterprises but the loan funding for start-up
is usually between RM 20,000 to RM 250, 000.

Meanwhile the interest rate of the borrowers’

repayment is 4% within ten years given.

Eligibility Specification:

Malaysian citizen
At least own a diploma holder in any degree
recognized by Malaysian Qualification Register
(MQR)
Graduation time: not exceed 15 years old
Age of an individual: not more than 40 years old

4) Young Entrepreneur Fund (YEF)

The main purpose of loan funding by YEF is to help the

young entrepreneurs to start their new business and
fulfil the needs for their existing enterprises.
Nevertheless, YEF is focusing more on the Shariah
Financing concepts. For instance; Bai’ Inah, Bai’
Bithaman Ajil, Ijarah, Ijarah Thumma Bai’ and Bai’ Istina.

Margin of Financing for:

Working Capital: Up to 100%

Business Operation Asset: depends on the
condition of equipment such as, Brand new tools –
up to 95%, and Reconditioned or Used tools – up to
70%

Still, the financials are limited to the range of RM20,

000 to RM100, 000, but gain the net profit rate around
5% per annum.

Eligibility Specification:
 Malaysian citizens who age between 18 to 30 years
old, owning a business.
Business is registered with Suruhanjaya Syarikat
Malaysia (SSM) – include sole-proprietorship,
partnership firm or Sdn Bhd company.
Partnership firm / Sdn Bhd company: the applicant
must obtain more than 51% shares or majority shares
in the company.
Own at least an entrepreneurship or vocational
certificate.
Start-up companies that operated less than 1 year
will be considered.

5) Tabung Pembangunan Pengangkutan

Awam (TPPA)

The TPPA scheme is to provide a fund loan for the public

transportation business including the commercial bus
and taxi operators in Malaysia.

The scheme is financing individual entrepreneurs,

companies, cooperatives and firms that match their
services towards public transportation.

Nevertheless, the financial is only limited to a certain

amount (also depends on what kind of services offered
by the company), which varies from RM30, 000 to RM
10 millions.

Eligibility Specification:
 The fund is only for the company or business that
offers services and operates the public
transportation such as bus, taxi, etc.
Should registered with SSM under the Commercial
Vehicle Licensing Board Act 1987 (Act 334)
Should registered with Lembaga Pelesenan
Kenderaan Perdagangan (LPKP) and have Surat
Tawaran Kelulusan (STK) from LPKP.

The financing loan period varies according to type of

transportation. As for the bus, it is up to 10 years, except
for the 8-year express bus.

Addition to that, LPKP has fixed the financing period,

which cannot exceed the remaining life of the
transportation.

6) Bumiputera Enterprise Enhancement

Programme (BEEP)

The BEEP is aiming to help build and develop the

Bumiputera SMEs throughout the integrated assistance
including reinforced the SME’s core business.

Eligibility Specification:

Should be registered under SSM / Professional

Bodies / Authorities or District Offices in Sabah and
Sarawak.
Fulfilled the definition of SME in terms of annual
sales turnover and scope.
 Bumiputera owns the 60% of equity
Own a valid business premise license
No conflict of interest with the supplier.
Under operation for at least 6 months
Have a SCORE / M-CORE assessment.

7) SME Emergency Fund (SMEEF)

A loan fund that helps the SMEs in the country after

unfortunate incidents such as natural disasters affected
their enterprise.

The fund only reaches an amount of RM100, 000, which

covers the disaster such as floods, drought, beach
erosion, etc.

The SMEEF also helps the business to rebuild back after

the disaster events, such as;

Fixing the electricity

Renovating the premises, doors, windows, floors,
etc.
Fixing any furniture that was affected in the premises
Fixing the machinery and tools

No worries, SMEEF will lend their help by providing the

working capital expenses and aid you to replace the
broken / damaged equipment with the brand new ones.

Eligibility Specification:
 Should be registered with SSM under Companies Act
1960 or Business Registration Act 1956.
Should at least 60% of the equity funds based in
Malaysia.
Owns valid business premise
Should operating the business in disaster areas
(declared by National Security Council or other
district offices)
Own the evidence that the business has been
affected by the natural disaster.
Owns a letter issued by District Officers.
Owns a verification report from SME Corp Malaysia.

8) Business Start-up Fund (BSF)

The BSF has been established to help fund new start-up

technology-based companies, following to match their
main objectives.

Their objectives are to remove unnecessary obstacles

and develop a growth in the business in the company.

Therefore, they provide the fund raising to these

companies with the amount up to RM5 million or 90% of
total cost of project. This funding period lasts for 6.5
years only.

However, 5 years are given for repayment period

instead.

Eligibility Specification:
 Should be incorporated under the Companies Act
2016.
Should a technology-based company – own a
minimum of 70% Malaysian shares.
The product or service must be significant in novelty
/ innovation.

9) TEKUN Financing

The TEKUN Financing scheme helps to provide a loan

fund or programme to aid youths who get involved in
Farming and Agro-based Industries.

Two financing schemes conditions provided by TEKUN

Financing, which are:

Small Loan Scheme (SPK) – RM10, 000 until RM 50,

000. Up to 5 years of payment period.
Medium Loan Scheme (SPS) – RM50, 000 until RM
100, 000. Up to 10 years of payment period.

Still, the repayment period is in between 6 months to

10 years and the entrepreneurs are required to pay
TEKUN Financing from a total of 4% of the loan per
annum throughout the loan period.

Eligibility Specification:

Bumiputera and Malaysia citizen

Aged between 18 to 60 years old
Not a bankrupt applicant
 100% owns by a Bumiputera
Own valid licence / permit / SSM
Have specific business location or premise / mobile
business
Engage directly and part time in business.
Should be one financing only for one household
company.

The best thing about TEKUN financing, the

entrepreneurs will be protected under Loan Insurance
and Life & Accident Insurance set by TEKUN Nasional
within the loan period.

10) Skim Kredit Pengeluaran Makanan

(SKPM)

The SKPM mostly funds loans towards who wants to

develop more on the Food Business background of Food
Industries in Malaysia.

Thus, they have been trying to help food production of

SMEs to enhance their productivity and reach the
business to a higher market level.

Eligibility Specification:

Should be incorporated in Malaysia with SSM under

Akta Syarikat 1965
Can be sole-proprietorship or partnership
Owns a valid business premise license
Only Malaysian citizen are allowed to apply for the
 scheme
Can be individual or non-individual (food business
based)
Should have at least 15% Malaysian ownership

With this scheme, SMEs gained loan up 100% according

to their total project cost, which exceeded RM500, 000.

Besides, the fund is fixed at 3.6% per annum in the

duration of 8 years.

11) Rural Economy Funding Scheme (SPED)

The SPED collaborated with other financing programmes

with the Ministry of Rural Development while aiming to
help Bumiputera SME entrepreneurs in rural areas.

The entrepreneurs have a huge opportunity to expand

and develop their business to the next level with this
fund.

The financial loan for SPED is financial concept based on:

Commodity Murabahah Term Financing-i (CMTF-i)

Commodity Murabahah Revolving Financing (CMRF-
i)
Ijarah Thumma Bai’ (ITB)
Kafalah Bank Guarantee.

SPED focusses on giving loan up to 90% for Fixed Asset

and up to 100% for the company’s working capital for
3 to 7 years.

Thus, the financial limit only ranges up to RM 250, 000

to RM 500, 000 per application. As for the net profit, it
rates for 5% per annual.

Eligibility Specification:

Should be operated in rural areas identified by KKLB

Be owned by Bumiputera
Registered under the Companies Commission of
Malaysia Act 2002 or Co-operative Societies Act
1993
Should obtained business license from local
authority
Should obtained business premise that separate
from residential

12) PROSPER Usahawan Muda (PUMA)

PUMA is a scheme that provides young Bumiputera to

begin their business while scheduling them under several
training programs.

These programs help these entrepreneurs to develop

their entrepreneurial skills and assist them to choose
their ways of approaching the business market.

They gave a chance to Bumiputera who wants to start up

their business by providing the funds up to RM 100,
000.
The funds will be running for ten years (maximum) and
it is based on Shariah concept instead.

Eligibility Specification:

Applicant must be a Bumiputera

Applicants must be in the range of age between 18
years old until 35 years old.
Applicant must be ready to prepare and capable to
invest money, at least RM500
Applicant must be ready to attend on every training
developmental program organized under this fund
scheme
Applicants must have good and clean financial
records.
Enterprise: Should be incorporated in Malaysia and
registered under SEM, own every license that is
required to start-up the business, not illegal and
follow the Shari’ah compliant.

Conclusion

With all of these government grants listed above, you

may choose one of them and receive a loan fund to boost
your business success.
To approve your SME entrepreneurship loan, lenders
need to be convinced with clear cash flow, especially
when you are new in business.

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