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Financing for Small and Medium Enterprises (SMEs) in Malaysia

SMEs are a critical component of the Malaysian economy, contributing more than a third of gross domestic product (GDP) and providing job opportunities to more than four million workers in Malaysia. Banking institutions is the main source of financing for SMEs, providing more than 90% of total financing. Provision of SME financing is also complemented by the Development Financial Institutions, Bank Negara Malaysia’s Funds for SMEs and Government Funds

List of Financial Institutions Providing SME Financing in Malaysia

Development Financial Institutions

  1. Bank Perusahaan Kecil & Sederhana Malaysia Berhad (SME Bank) (
  2. Bank Pertanian Malaysia Berhad (Agrobank) (
  3. Bank Pembangunan Malaysia Berhad (
  4. Export-Import Bank of Malaysia Berhad (EXIM Bank) (
  5. Bank Simpanan Nasional (
  6. Bank Kerjasama Rakyat Malaysia Berhad (

Commercial Banks

Islamic Banks

AmBank to disburse RM 20B in SME Financing by 2021

AmBank (M) Berhad aims to disburse RM20 billion in loans in the next three years to spur SME development in Malaysia.

In line with its Top 4 Strategy, AmBank has undertaken several initiatives aimed at igniting SME growth.

The bank’s AmBank BizCLUB, a platform to help SMEs scale to the next level through financing and beyond financing initiatives, offers training, networking and publicity opportunities to SMEs. The second season of the AmBank BizRACE, the cornerstone initiative under the AmBank BizCLUB is underway. The business competition provides SMEs with the opportunity to win RM2 million worth of prizes.

This year’s competition has seen more than 1000 entries from SMEs across the nation. The Top 30 will today go through a business pitching session to impress the AmBank BizRACE panel of judges in order to be selected as one of the Top 10 finalists. The Top 10 finalists will then go on to the final pitching session and subsequently, the grand finale Awards Night on 26 April 2019.

Dato’ Sulaiman Mohd Tahir, Group Chief Executive Officer, AmBank Group, said, “AmBank Group will continue to support SMEs through much needed financing. At the same time, we are also conscious of the need to go beyond providing companies with funding. Through our various SME-centric initiatives, we are focused on being there for our SME clientele, from cradle to IPO.”

In recognition of AmBank’s continuous efforts in support of the SME segment, the bank was recently named, the Best SME Bank for Malaysia by Global Banking & Finance Review, a leading UK based financial portal and print magazine.

In 2018, the bank disbursed RM6.14 billion worth of SME loans, marking a substantial 30.6% growth from RM4.7 billion in 2017. In order to enhance the support rendered to its SME clientele, the Bank looks to launch a purpose-built SME business banking service centre with a dedicated team to assist SMEs in their daily needs. The service centre is expected to be launched in the third quarter of 2019.

The Group’s strategic collaboration with Credit Guarantee Corporation Malaysia Berhad (CGC) to develop as well as to provide financing to the SME segment in Malaysia, saw an additional RM100 million allocated in January 2019 to finance Proton dealers. AmBank has launched 9 Portfolio guarantee (PG) schemes with CGC amounting to RM2.25 billion between 2015 to 2019.

Over these two seasons, AmBank BizRACE has received close to 2,000 entries. Successful participants of AmBank BizRACE have received over 100 hours of training and development in key areas such as leadership, strategy, culture and innovation.

In the first season of the AmBank BizRACE that was held last year, the Top Five attended a learning trip to China where they were exposed to many companies with unique cutting-edge business models. The Top Five SMEs gained valuable insights on how these organisations grew and scaled their businesses. In addition, the winners had the opportunity to meet and network with innovative and global-minded business leaders.

AmBank completed its second BizCONFERENCE series last year consisting of five nationwide conferences that were held in Pulau Pinang, Kuala Lumpur, Klang, Melaka, and Johor. Each event featured local entrepreneurs and subject matter experts from various industries who shared their entrepreneurship journey. Three of the BizCONFERENCE sessions were catered to bilingual Malaysians, enabling a more inclusive learning environment.

Another branch of the AmBank BizCLUB is the AmBank CEO Chat Sessions, a series of chat sessions featuring talks by renowned CEOs, captains of industries and thought leaders in Malaysia. The small and exclusive sessions allow entrepreneurs to network and connect with speakers.

This year’s AmBank BizRACE official partners include UTM Azman Hashim International Business School (AHIBS), Microsoft Malaysia, EY, Media Prima and MasterCard.

Participating businesses will stand a chance to win RM 2 million worth of prizes including a development programme worth RM310,000, a China learning field trip worth RM340,000 and a UK-based executive development programme worth RM265,000, in addition to various awards.

AmBank looks to continue its efforts for the SME segment through a series of knowledge sharing sessions by relevant subject matter experts that will address topics relevant to the SME market. The series will cover key topics including Internet of Things (IOT), HALAL Hub, Green Business, Branding & Marketing as well as People & Culture.

For more information on AmBank BizRACE, visit

by Focus Malaysia

An alternative finance source for Malaysia Investors and SMEs

If you got some properties, we might be able to help secure some funding for you to meet your short term financial needs that could not be satisfied by Banks due to:

Time Constrain, such as:

  • SPA left 1 month to process before expires
  • Could not obtain approval from bank after 2 months applied or still no news from banks.
  • Need fast and short term working capital when bank procedure will take long time to approve.
  • Has purchased property in auction but approval still not obtained and time is near to pay the balance etc.

Minor credit issues (CRISS and CTOS problem)

  • Blacklisted but already resolved.
  • CCRIS has “2” or “3” or more but within which are acceptable to us.

Insufficient income proof i.e. can show repayment capacity and have the ability to pay but official document not sufficient.

  • Eg. Reported income is too low to get another bank loan, Bank insists on latest audited report or else the application will not be processed.

Inflexibility on repayment terms or Bank do not offer short term funding e.g. 6 months

  • You only want short term loan that will settled within 1 to 2 years – Service interest only with bullet payment when account is settled within the 2 years with no early settlement penalty.

Stringent bank policy – banks are restricted by scoring or programmed lending

  • You are a good customer but due to bank scoring system, you could not get a bank loan
  • You are a first time developer which bank will not do due to lack of track record.
  • A Newly registered company with directors have experience in the trade or having other companies with track record, however, banks want it to be at least 3 years old.

Funding Available:

Short Term Loan

  • Loan to Value Ratio: 60% – 70%
  • Tenure: 6 months to 24 months
  • Interest Rate: 12% p.a.

Medium Term Loan

  • Loan to Value Ratio: 60% – 70%
  • Tenure: 5 to 7 years
  • Interest Rate: 9% p.a.

Bridging Loan

  • Loan to Value Ratio: from 60%
  • Tenure: 6 months to 24 months
  • Interest Rate: 12% p.a. (1 month 1% of loan disbursed)
  • Type of Project: Low rise and landed e.g. factories and shophouses
  • Not Acceptable: High Rise such as service apartments, hotels, malls, any type of residential projects

Important Note

  • All loan must be secured by property i.e. land, factory, shops or houses.
  • Shares, fixed deposits, stocks, projects, contracts are not acceptable as security.
  • Only property with title / strata title or individual title freehold or leasehold more than 30 years acceptable. Malay reserved land not acceptable.
  • Interest rate and tenure is non-negotiable


Agrobank is a continuity of the former Bank Pertanian Malaysia which has 40 years of experience in agricultural banking and an excellent track record in shaping and developing successful entrepreneurs. With a wide network of branches throughout Malaysia, we are confident of providing the best services to all.

Agrobank is a Government-owned Bank under the Minister of Finance Incorporated (MFI). The bank’s financing of the agricultural sector is driven by a policy set forth by the Ministry of Agriculture and Agro-Based Industry (MOA). Agrobank today operates through 190 branches throughout Malaysia, and employs over 3,400 employees.

Business Financing Facilities

  • Modal Usahawan 1Malaysia (MUS1M-i)
  • Private: Paddy Cash-i
  • Tanaman Semula Kelapa Sawit-i (SAWIT-i)
  • Term Financing-i
  • Paddy-i (Tawarruq)
  • Kemudahan Pembiayaan Modal Kerja-i (Tawarruq)
  • Machinery & Equipment Financing-i (MAEF-i)
  • Agro Cash Line-i
  • Strategic Alliance Financing-i (SALF-i)

Financing Programmes

1. Credit Limit Enhancement Program (CLEP)

A retention program designed for long-standing and creditworthy existing customer of Agrobank, to be automatically considered for an increase in their credit facilities.

2. Green Lane Policy (GLP)

To enhance the competency of local SME ventures in biotechnology sector

3. Program Agropreneur Muda (PAM)

To provide specific financing facility targeted for young entrepreneur in agriculture sector in order to produce progressive, competitive, creative, and innovative and highly income Young Agropreneur.

4. Group Financing Program (GFP)

To assist entrepreneurs in selective sectors with market potential to start and develop a project with the guidance of expert companies, and to promote transfer of expertise
To assist successful companies in expending their business by providing capital in exchange to expertise and knowledge transfer

5. Program Pembiayaan Dana TERAS

To pursue more potential companies
To ensure the participation of the Bumiputera companies

6. Skim Jaminan Kredit Islam Enhancer (Enhancer-i)

An Islamic guarantee scheme provided by Credit Guarantee Corporation (M) Berhad (CGC)

A CCG’s guarantee facility to assist SME’s entrepreneurs who have viable business but lack of collateral to obtain financing facility from the Bank

7. Skim Pembiayaan Bot Perikanan-i (SPBP-i)

Perkhidmatan untuk memodenkan industri perikanan melalui pemilikan bot serta peralatan menangkap ikan yang lebih besar dan moden berkonsepkan Tawarruq

8. Skim Usahawan Tani Komersial Siswazah-i (SUTKS-i)

SUTKS-i menyediakan pembiayaan kepada graduan menganggur yang berminat dalam pertanian sepenuh masa berkonsepkan Tawarruq

9. Skim Kredit Pengeluaran Makanan-i (SKPM-i)

SKPM-i menyediakan pembiayaan kepada usahawan Kecil dan Sederhana (PKS) yang terlibat dalam aktiviti pengeluaran makanan yang diuruskan oleh Kementerian Pertanian & Industri Asas Tani, Kerajaan Negeri atau mana-mana agensi kerajaan.

10.Masyarakat Perdagangan & Perindustrian Bumiputera (MPPB – HUB)

MPPB adalah kemudahan pembiayaan berkonsepkan Tawarruq khusus untuk usahawan Bumiputera dalam sektor pertanian.

11. Masyarakat Perdagangan & Perindustrian Bumiputera (MPPB – DPUP)

MPPB kemudahan pembiayaan berkonsepkan Tawarruq khusus untuk usahawan Bumiputera dalam sektor pertanian.

12. EPP8 (Food Park/Incubator)

Dana bagi membiayai Syarikat Peneraju / Syarikat Peserta yang menyelaraskan PKS dan pengusaha kecil bagi melaksanakan projek dalam bidang pertanian dan industri asas tani secara komersial dan melibatkan pengeluaran berskala besar berkonsepkan Tawarrruq.

13. Program Dana Pertanian Komersial (DPK)

Kemudahan modal untuk menggalakan penyertaan badan korporat untuk menyertai projek asas-tani berimpak tinggi yang boleh menjadi pemangkin kepada pengkormesilan perniagaan asas-tani di Malaysia berkonsepkan Tawarruq.


Bank Rakyat was established on 28 September 1954 under the Cooperative Ordinance 1948 (known as the Cooperative Societies Act 1993). Today, Bank Rakyat is the biggest Islamic cooperative bank in Malaysia with assets totaling RM89.18 billion as at end of December 2014.

The transformation in 2002 of the Bank from a conventional banking system to a banking system based on Syariah has enabled the Bank to record encouraging profits year after year. For the financial year ending 31 December 2014, we have recorded a pre-tax and pre-zakat profit of RM2.16 billion.

We continue to expand our product range and customer facilities that are varied and innovative. The products and facilities include consumer banking, commercial financing, savings and investments as well as products of financial planning to satisfy the many demands of a wide spectrum of modern day customers.

Efficient delivery channels continue to be expanded and continuously improved. We continue to maintain a friendly corporate image to place us on a sound footing as Your Choice Bank.

We have received various recognitions as an industry player and as an outstanding cooperative organization in Malaysia as well as internationally.

As an entity under the control of the Ministry of Domestic Trade, Cooperatives and Consumerism, we are committed to support the mission of the Ministry to consolidate the cooperative sector as the mainstay of economic growth of the nation via all the efforts and steps that we have arranged.

Financing Schemes available:

Micro Financing-I

  • Micro Financing-i MUsK
  • Micro Enterprise Fund

Business Financing-i

  • Term Financing-i
  • Bridging-i
  • Property-i
  • Contract-i
  • Hire Purchase-i
  • Share-i
  • Contract Financing-i Tijari
  • Working Capital for Ar-Rahnu X’Change

Government Schemes

  • SPED
  • Micro Financing-i MPPK
  • Micro Financing-i ME2
  • Credit Guarantee Corporation (CGC) Scheme

Small Medium Enterprise

MARA Entrepreneur Guarantee Scheme


Our target sectors include commercial and residential property development, industrial, agricultural, manufacturing, infrastructure etc. Financing scheme available:

Medium to long-term finance for commercial, industrial, agricultural and manufacturing projects.

Bridging loan for commercial and residential property development.FIXED ASSETS FINANCE
Loan for the acquisition of machinery, equipment and plant modernisation.WORKING CAPITAL

Working capital finance for established and on-going enterprises.LOAN SYNDICATION
Arranging, participating, managing and co-managing loan syndications for major projects.CORPORATE

Provision of advisory services for project evaluations in particular the financial aspects.VENTURE

Investment in equities of unlisted companies with high growth potential for purposes of divestment at later stage.

Acting as the Financial Intermediary for the State Government of Sabah.PROJECT REHABILITATION
Reviving non-performing/abandoned projects with the aim of eventually spinning-off these projects into commercially-viable ventures.


Target Sector

  • Infrastructure
  • Maritime
  • Technology
  • Oil & Gas

Mode of Financing

Project Finance

Project finance is a mode of financing designed for long-term capital-intensive projects whereby the source of financing repayment is solely based on the cash flow generated from the project. The financing is normally extended to a Special Purpose Vehicle and has no or very limited recourse on the promoter.

Contract Finance

Contract finance is a short to medium term financing offered to contractors, who have been awarded contracts to construct and complete infrastructure projects under progress payment arrangement.

Deferred Payment Loan

Deferred payment loan is a medium-term financing offered to contractors, who have been awarded contracts to construct and complete infrastructure projects under deferred payment concept. The financing is designed to bridge the gap between the period of completion and the actual payment made by the government to the contractor.

Private Finance Initiative

Private Finance Initiative (PFI) is a scheme designed to support the government’s efforts to improve the quality of services of public facilities. The scheme provides financing for private sector investors in completing the PFI projects awarded by the government.

Structured Finance

Structured Finance is a medium to long-term financing offered to eligible customers in which the consideration would be based on the combination of the viability of the project to be undertaken as well as the financial strength of the promoter. The financing is to assist the customers in the construction of building and acquisition of assets.

In meeting the specific financing requirement of our customers, the above financing can be packaged in various Financing Facilities , either in conventional or based on Islamic principles. Attractive financing packages are also made available in concessionary terms through our various Special Funds & Schemes.

Tourism Infrastructure Fund (TIF)

TIF is a scheme that supports the Government’s mission in developing and boosting Malaysia tourism industry. TIF is meant to finance the incremental cost of new/existing projects excluding working capital. The Islamic Financing Product provided are supervised and approved by the Shariah Committee of BPMB .


Soft Loan Scheme for Automation & Modernisation (SLSAM)

The SLSAM was launched in February 2007 and, in August 2013, this Scheme was amalgamated with the Soft Loan Scheme for Automotive Development (SLSAD) and retained its name. The fund for this Scheme is channelled by the Government of Malaysia via the Ministry of International Trade and Industry (MITI) to MIDF for the implementation of the Scheme. The SLSAM assists manufacturing companies to:

  • modernise and automate manufacturing processes;
  • upgrade production capability and capacity;
  • minimise dependence on labour – intensive activities and foreign labour;
  • diversify into higher value- added activities;
  • rationalise and streamline operations including through mergers and acquisitions;
  • tooling acquisition, development and production;
  • productivity improvement; and
  • enhancing export performance.

Eligibility Criteria and Main Features

1. Eligibility:

Companies incorporated under the Companies Act 1965;
At least 51% equity held by Malaysians;
Possesses a valid business licence; and
In operation for at least 2 years.

2. Sector:


3. Financing Amount:

Minimum: RM50,000.
Maximum: RM10 million for each application.

Soft Loan Scheme for Small & Medium Enterprises (SLSME)

The SLSME was launched in December 2001 to promote the development of small and medium enterprises in Malaysia. This Scheme assists existing as well as newly start-up enterprises in project, fixed assets and working capital financing. The fund for this Scheme is channelled by the Government of Malaysia via SME Corporation Malaysia to MIDF for the implementation of the Scheme.

Eligibility Criteria and Main Features

1. Eligibility:

SMEs incorporated under the Companies Act 1965 or Registration of Business Ordinance 1956;
At least 60% equity held by Malaysians;
Possesses a valid premises licence ; and,
SMEs with shareholdings not exceeding 20% held by public-listed companies (only if applicable).

2. Sectors:

Manufacturing-related services.
Services (excluding insurance and financial services).

3. Financing Amount:

Minimum: RM50,000.
Project Financing – Maximum RM5 million. Fixed Assets Financing – Maximum RM5 million.
Working Capital Financing – Maximum RM3 million. IT Hardware/Software – Maximum RM500,000.

SME Emergency Fund (SMEEF)

The SMEEF was established to assist small and medium enterprises (SMEs) which had their business adversely affected by natural disasters. This Fund provides soft loan financing for purchases of machinery and equipment, refurbishment of premises, and working capital requirements such as purchases of raw materials and consumables. The Fund is channeled by the Government of Malaysia via SME Corporation Malaysia to MIDF for its implementation.

Eligibility Criteria and Main Features

1. Eligibility:

SMEs incorporated under the Companies Act 1965 or Registration of Business Ordinance 1956;
Possesses a valid premises licence issued by the municipal council (pihak berkuasa tempatan);
Provides proof of evidence of natural disaster through a letter issued by the district office or a copy of a police report; and,
Operates in the area declared as a disaster area by Majlis Keselamatan Negara or district offices.

2. Types of Natural Disasters:

Flood; Storm; Drought; Beach erosion; or Landslide.

3. Sectors:

All economic sectors.

4. Financing Amount:

Minimum: RM50,000.
Maximum: RM100,000.

Soft Loan Scheme For Services Sector (SLSSS)

The SLSSS was established and funded by the Government of Malaysia to provide financing assistance to companies and enterprises in the services sector. The objectives of the Scheme are:-

  • to provide financing assistance to new start-up companies and/or enterprises for the creation of new services entrepreneurs; and,
  • to provide financing assistance to the services sector to expand/upgrade/modernise/diversify their services into higher value-added activities and improve productivity and efficiency in service delivery.

The Scheme provides financing to companies and enterprises for the purchase of fixed assets such as land/buildings, machinery/equipment, and ICT hardware and software, for the purchase or construction or renovation of business premises and for working capital requirements.

MIDF is the implementing agency of the Scheme which is administered by the Ministry of International Trade And Industry (MITI).

Eligibility Criteria and Main Features

1. Eligibility:

Companies incorporated under the Companies Act 1965 or enterprises registered under the Registration of Businesses Ordinance 1956 or services providers registered under the Certificate of Practice any Professional Regulatory Bodies;
At least 60% equity held by Malaysians; and,
Possesses a valid premises licence.

2. Sectors:

Services (excluding financial, insurance, utilities and construction sectors).

3. Financing Amount:

Minimum: RM100,000.
Maximum: RM5 million.

Soft Loan Scheme For Bumiputera Automotive Entrepreneurs (SLBAE)

The SLBAE was established and funded by the Government of Malaysia to facilitate and assist Open Approved Permit (AP) holders to expand and diversify into other automotive-related businesses and to sustain and enhance Bumiputera participation in the automobile industry.

MIDF is the implementing agency of the Scheme which is administered by the Ministry of International Trade And Industry (MITI).

Eligibility Criteria and Main Features

1. Eligibility:

Companies incorporated under the Companies Act 1965 with:

Open AP Holders for passenger vehicles (excluding motorcycles);
Open AP Holders for motorcycles that are registered members of Persatuan Pengimpot Dan Peniaga Kenderaan Melayu Malaysia (PEKEMA);
A Joint venture company with controlling equity stake held by Open AP Holders;
A company with controlling stakes are owned by Director(s) or shareholder(s) of the Open AP holders and the controlling aspects are reflected in the equity stake, members of the company’s Board of Directors, managerial, technical and supervisory;
A joint venture company with shares are owned by Open AP Holders and Director(s) or shareholder(s) of the Open AP holders with controlling equity stake; and
Possess a valid premises licence.

2. Sectors:

Services excluding financial and insurance services

3. Financing Amount:

Minimum: RM100,000.
Maximum: RM5,000,000

Soft Loan Scheme For Services Capacity Development (SLSCD)

The SLSCD was launched in April 2009 by the Government of Malaysia under the Services Sector Capacity Development Fund of the First Economic Stimulus Package to assist companies and enterprises to undertake upgrading and modernisation for diversifying into higher value-added activities, and improving the productivity and efficiency of service delivery.

It addresses the impact of liberalisation on local services providers by providing financial assistance to the services sectors to build up its capacity in order to withstand competition due to the opening up of markets as well as to strengthen international competitiveness.

MIDF is the implementing agency of the Scheme which is administered by the Malaysian Investment Development Authority (MIDA).

Eligibility Criteria and Main Features

1. Eligibility:

Companies incorporated under the Companies Act 1965 or enterprises registered under the Registration of Businesses Act 1956;
At least 60 % equity held by Malaysians;
Possess a valid premises licence;
In operation for at least 2 years; and,
Annual turnover exceeding RM200,000/- and full-time employees exceeding five.

2. Sectors:

All services sectors (excluding financial, insurance, utilities and construction sectors).

3. Financing Amount:

Minimum: RM50,000.
Maximum: RM5 million.


The SLSSE was launched in October 2015 to provide assistance to Malaysian Service Providers (MSPs) to undertake activities to expand and venture into international markets.

The implementation of the fund is from 2015 until 2020.

Eligibility Criteria and Main Features

1. Eligibility:

Registered with MATRADE (MER);
Firms incorporated under the Companies Act 1965; or;
Sole proprietors, professionals and partnerships registered with respective professional authorities in Malaysia;
Having at least 60% equity owned by Malaysian;
Company must be currently active in business and in operation for at least 1 year;
Exporting Malaysian services or product made in Malaysia.

2. Sectors:

Services (excluding tourism and financial sectors)

3. Financing Amount:

i. Financing to defray the cost related to the issuance of a Bank Guarantee or Performance Bond for project execution excluding the principal value of the said Bank Guarantee or Performance Bond – Maximum of RM5 million per company.
ii. Financing to assist MSPs in proposing and planning for overseas’ project negotiations – Maximum of RM2 million per company.

SME BANK (Bank Perusahaan Kecil dan Sederhana Malaysia Berhad)


  • Online Business Financing Program (OBF)
  • Financing Program For Women Entrepreneur (WEP-LEAP)
  • Financing Program For SME (SME-LEAP)
  • Business Accelerator Program (BAP)
  • Bumiputera Equity (EquiBumi) Financing Facility
  • Bumiputera Financing Fund (BFF)
  • Malay Reserve Development Financing Programme
  • TERAS Financing Scheme
  • Bumiputera Halal Development Fund
  • Halal Development Fund
  • Young Entrepreneur Fund (YEF)
  • SME Development Scheme (SDS)
  • Business Premises Financing Scheme
  • Tabung Usahawan Siswazah 2 (TUS 2)
  • Public Transport Development Fund (TPPA)
  • Rural Economic Development Scheme (SPED)


  • i-Biz Cash
  • i-Enterprise Premise Financing
  • Rolling Expenditure Advance Cash Scheme
  • (i-REACH)
  • Supply Assistance Scheme
  • (i-SPLASH)
  • Supplementary Renewed Facility
  • (i-SURF)
  • Contract Financing


  • SME-Go
  • Special Relief Facility 2015
  • Payment for SME Bank Financing
  • Will Writing Business (WWB)
  • CGS Islamic Scheme