Launching a business in Malaysia means you are striving in the competitive market and always looking for a way to help your business flourish. One of the ways of doing so is taking advantage of financing incentives provided by the government. The government of Malaysia has been implementing various financial schemes and incentives to support business activities in the country. Here is a list of Malaysia government grants that might help fund your small business in Malaysia
1) Soft Loan Schemes for Services Sector (SLSSS)
The first one in the list of Malaysia government grant is Soft Loan Schemes for Services Sector (SLSSS). Under this scheme, Malaysian businesses in the services sector can get a loan of up to RM 5 million at a rate of 4% for SMEs and 5% for other companies. The Malaysian Industrial Development Finance Berhad (MIDF) implements this scheme.
2) Soft Loan For SMEs (SLSME)
Malaysian Industrial Development Finance Berhad (MIDF) runs this loan. This is a scheme targeted to Malaysia SMEs in the sector of manufacturing and services. The maximum financing amount, in this case, is also RM 5 million at a rate of 4% per annum.
3) Tabung Usahawan Siswazah (TUS)
The Tabung Usahawan Siswazah (TUS) helps Malaysian graduates from any fields with finances to help them invest in their own business, the maximum amount being RM 500,000 and the rate is 4% per annum. SME Bank implements this scheme. The graduates must be a Malaysian citizen and should have at least a Diploma degree from a university in Malaysia.
4) Young Entrepreneur Fund
Young Entrepreneur Fund is for young Malaysian entrepreneurs to start or run their own business in the service sector. To be eligible for this program, applicants must be between 18 to 30 years of age. The financing amount is between RM 20,000 to RM 200,000 at a rate of 5% per annum.
5) Tabung Pembangunan Pengangkutan Awam (TPPA)
Tabung Pembangunan Pengangkutan Awam (TPPA) helps Malaysian businesses in the field of public transportation (taxis and buses). Individual, corporate or companies are eligible for the scheme and under it, the minimum financing is RM 30,000 to a maximum of RM 5 million. Also, SME Bank Malaysia is the one who implements this programme.
6) Bumiputera Enterprise Enhancement Programme (BEEP)
Another incentive from SME Bank, the Bumiputera Enterprise Enhancement Programme provides selected Bumiputera enterprises with financing and specialized training. It is to create and innovate more SMEs run by Bumiputera in the country, helping them reach a bigger market. Run by SME Corporation Malaysia, it is an overall development program rather than just funding.
7) SME Emergency Fund (SMEEF)
This is a funding program to help SMEs renovate their business premises affected by natural disasters. The SME Emergency Fund (SMEEF) can be provided as a grant or a loan, all of which depends on what work the money is being used. Based on the needs of an enterprise, they can apply to SME Corporation Malaysia for finances up to RM 100,000.
8) Business Startup Fund
Business startup fund makes up the list of Malaysia government grants as a supportive innovation scheme. Tech-related business startups in Malaysia are eligible for this scheme, and SME Corporation Malaysia runs this scheme. The maximum amount of financing can be RM 5 million or 90% of the total business at a rate of 3.5% per annum.
9) TEKUN Financing
TEKUN Financing has two categories, Small Loan scheme (SPK), where businesses could apply for a loan amount of RM 10,000-RM 50,000 and Medium Loan Scheme (SPS), where the loan amount is RM 50,000-RM 100,000. It’s run by TEKUN Nasional (TEKN), and only Bumiputeras are eligible under this scheme.
10) Tabung Pembangunan Usahaniaga Peladang (TPUP)
Tabung Pembangunan Usahaniaga Peladang (TPUP) is for farmers in Malaysia. This is a scheme providing farmers with finances to help them turn agriculture into a profit-generating business and eventually have a net income of more than RM 4,000 per month. Lembaga Pertubuhan Peladang (LPP) is coordinating this scheme.
11) Skim Kredit Pengeluaran Makanan
Run by Agro Bank, Skim Kredit Pengeluaran Makanan is for food industry businesses and startups. Under this scheme, eligible enterprises can get 100% of the project funds, with the maximum threshold of RM 500,000. The interest rate is 3.7% per annum, and the company should be working in any food production activity moderated by Skim Kredit Pengeluaran Makanan.
12) Rural Economy Funding Scheme (SPED)
This scheme comes with an objective of increasing the number of rural Bumiputera entrepreneurs in Malaysia, making more people from rural sectors interested in the field of business. Also, it is based on Shariah concept and businesses could apply for a loan from RM 20,000 to RM 50,000. The company should be 100% owned by Bumiputera and the idea should be viable.
13) Micro Enterprise Fund (MEF)
Another one is Micro-Enterprise Fund (MEF) run by Bank Rakyat. Its objective is to make it convenient for Malaysia home-based businesses to get secure funding. The loan amount can range from RM 1,000 to RM 50,000 depending on the business needs, and the individual has to dedicate to the enterprise full time.
14) SME Scheme (Services, Manufacturing & Engineering)
As the name suggests, this scheme is for enterprises in the services, manufacturing, and engineering sectors. Perbadanan Usahawan Nasional Berhad (PUNB) introduces this incentive and it has been helping Malaysia-based businesses in the relevant fields with a loan from RM 50,000 to RM 5 million, depending on the type of business and its viability. This scheme is only for Bumiputeras who can contribute to at least 20% of the total project cost.
15) PROSPER Usahawan Muda (PUMA)
The PROSPER Usahawan Muda (PUMA) is to help young Bumiputeras fund their startup, and the maximum funding is RM 100,000. The financing tenure is ten years at most, and it is based on the Shariah concept. The age of the applicants must be over 18 years old and can’t be more than 35 years old.
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