Financing Options for Business Start-ups in Malaysia

Financing Options for Business Start-ups in Malaysia

Entrepreneurs looking to start their first business venture in Malaysia will be pleased to know that there are several financing schemes available. The schemes listed below are supplied by several different agencies, and entrepreneurs will need to conduct their own research into sourcing which option would be best suited to meet all your business needs.

 

Financing Schemes in Malaysia Provided by the Malaysian Industrial Development Finance Berhad (MIDF) Agency

MIDF is operated by the Ministry of International Trade and Industry (MITI), and they provide entrepreneurs with two options:

1) Soft Loan Schemes for Service Sector (SLSSS) for the services sector:

• To provide start-up companies with funding to aid in the creation of new services entrepreneurs.
• To assist start-ups with expanding, upgrading, modernizing, and diversifying their existing services towards higher value-added
• activities. This is to improve efficiency and productivity in terms of service delivery.

• •  

2) Soft Loan for SMEs (SLSME) for the manufacturing and services sector:

• To provide new and existing start-up companies in Malaysia with assistance in terms of projects, working capital financing and fixed assets
• This scheme aims to help SMEs operating in unlicensed premises to relocate their operations to a legal premise better suited for industrial purposes.
• Provide start-up companies and SMEs with financial assistance in the hopes of improving their efficiency, competitiveness and productivity through ICT adoption in their business operations and management.

 

Financing Schemes in Malaysia Provided by Bank Perusahaan Kecil dan Serdahana Malaysia Berhad (SME Bank) Agency

Run by the Ministry of International Trade and Industry (MITI), SME Bank provides the following financing options:

1) Tabung Usahawan Siswazah (TUS) for all sectors:

• With the aim to provide even more opportunity for graduates to venture into entrepreneurship

2) Young Entrepreneur Fund for services sector

• This scheme aims to provide assistance to young entrepreneurs who are involved in business activities which are of interest to the younger generation.
• Funding is open to youths aged between 18-30 years at the point of application.

3) Tabung Pembangunan Pengangkutan Awam (TPPA) for all sectors

• With the aim to improve transportation in rural areas, including via school buses, mini buses, stage buses and taxi services.

 

Financing Schemes in Malaysia Provided by the SME Corporation Malaysia (SME Corp. Malaysia) Agency

Run by the Ministry of International Trade and Industry (MITI), SME Corp provides the following financing schemes:

1) Bumiputera Enterprise Enhancement Programme (BEEP) for all sectors:

• With the aim to develop potential Bumiputera SMEs in all states throughout Malaysia by providing selected SMEs with comprehensive assistance packages that comprise of financial assistance and advisory services.

2) SME Emergency Fund (SMEEF) for all sectors:

• To provide SMEs with assistance after their business has been affected by natural disasters. This is a soft loan financing option for the purchase of machinery, equipment, refurbishment and working capital requirements for the purchase of raw materials and consumables.

 

Financing Schemes in Malaysia Provided by the Malaysian Technology Development Corporation (MTDC) Agency

Run by the Ministry of Finance (MoF), MTDC provides the following financing options:

1) Business Start-up Fund (BSF) for all sectors:

• With the aim to facilitate and encourage the growth of technology entrepreneurs and new start-up companies.

 

Financing Schemes in Malaysia Provided by the Cradle Fund Sdn Bhd (Cradle) Agency

Run by the Ministry of Finance (MoF), Cradle provides the following financing options:

1) Angel Tax Incentive for all services:

• This scheme is designed to assist technology based start-ups in Malaysia to raise funding by offering tax incentive to angel investors who have invested in these companies.

 

Financing Schemes in Malaysia Provided by the Tekun National (TEKUN) Agency

Managed by the Ministry of Agriculture and Agro-based Industry (MOA), TEKUN provides the following options:

1) TEKUN financing for all sectors:

• To provide funds to SMEs for expansions, entrepreneurship information and business opportunities to TEKUN participants.
• To provide advisory and support to TEKUN participants and develop a TEKUN entrepreneurship community who are competent, innovative and progressive.
• To inculcate entrepreneur culture among participants and provide microfinance facility for working capital requirements to assist small Bumiputera entrepreneurs in their existing new start-up business and project implementation.

 

Financing Schemes in Malaysia Provided by the Bank Pertanian Malaysia Berhad (AGRO Bank) Agency

Managed by the Ministry of Agriculture and Agro-based Industry (MOA), AGRO Bank provides the following options:

1) Paddy – I for the agriculture sector

• With the aim to provide financial assistance to Malaysian paddy growers.

2) Skim Kredit Pengeluaran Makanan for the agriculture sector

• With the aim to provide financial assistance to Malaysian entrepreneurs.

3) Perusahaan Kecil dan Sederhana (IKS/PKS) for the agriculture sector:

• With the aim to provide financial assistance to Malaysian entrepreneurs.

 

Financing Schemes in Malaysia Provided by the Majlis Amanah Rakyat (MARA) Agency

Run by the Ministry of Rural & Regional Development (KKLW), MARA provides the following options:

1) Skim Pembiayaan Mudah Jaya (SPiM) for all sectors to provide financing facilities to Bumiputera entrepreneurs.

 

Financing Schemes in Malaysia Provided by the Amanah Ikhtiar Malaysia (AIM) Agency

Managed by AIM itself, they offer the following financing options:

1) The Ikhtiar Financing Scheme for all sectors:

• With the aim to reduce poverty rate in Malaysia by providing financing to poor households to enable them to undertake viable economic activity to upgrade their household income includes i-Mesra, i-Srikandi and i-Wibawa.

 

Financing Schemes in Malaysia Provided by the Bank Negara Malaysia (BNM) Agency

Managed by BNM itself, they provide the following financing options:

1) Micro Enterprise Fund (MEF) for all sectors

• With the aim to provide micro enterprises continuous access to financing.

 

Financing Schemes in Malaysia Provided by the Perbadanan Usahawan Nasional Berhad (PUNB) Agency

Managed by PUNB itself, they offer the following financing options:

1)SME Scheme (Servies, Manufacturing & Engineering) for manufacturing and services sectors:

• To help increase the number of Bumiputera entrepreneurs in manufacturing and services sectors (ICT/Engineering etc.)
  To help increase the number of Bumiputera participation in the industrial field.

2) PROSPER Usahawan Muda (PUMA) for services limited to retail and distributive sectors:

• To help young Bumiputera to embark on retail and distribution business through structured and systematic development mechanism.