BUSINESS CAPITAL / FINANCING
Q1- Where can I apply for capital or help in setting up a business?
A1- Some of government organizations that offer business loans of up to RM5 million for entrepreneurs or business owners are:
1. TEKUN Nasional
TEKUN Nasional, formerly known as Yayasan TEKUN Nasional, is an agency under Ministry of Entrepreneur Development and Cooperatives that provides easy and quick financial loans for bumiputera entrepreneurs looking to set up and improve their business.
There are several business financing schemes provided by TEKUN among others:
- TEKUN Niaga Financing Scheme
- TEMAN TEKUN Financing Scheme
- TemanNita Programme Financing Scheme
- Kontrak-i Financing Scheme
- AR-RAHNU TEKUN
Loans from MYR10,000 to MYR 100,000 are available with a repayment period of 5 – 10 years. Visit the Official Portal of TEKUN Nasional for more information.
2. PROSPER PUNB
PROSPER is a syari’ah based financial product of the National Entrepreneurs Corporation Berhad (PUNB). Up to RM100,000 of financing is offered with a repayment period of 7 years. PUNB also offers corporate development and entrepreneur development training programmes.
Visit the Official Portal of the National Entrepreneurs Corporation Berhad (PUNB)
3. SUPERB TERAJU
The Bumiputera Leadership Agenda Unit (TERAJU) is a strategic unit in the Prime Minister’s Department of Malaysia that leads, spurs and coordinates Bumiputera participation in the nation’s economy in line with the National Transformation Plan.
The Bumiputera Entrepreneurs Startup Scheme (SUPERB) provides a grant of up to RM500,000 to support innovative and creative business ideas. It disburses RM100 million worth of funds to finance startup companies.
Visit the Official Portal of TERAJU to find out more.
4. TERAS TERAJU Funds
TERAS TERAJU Fund aims to accommodate business expansion under the High Performance Bumiputera Company Programme (TERAS). Under the TERAS Fund, are financing involves working capital and purchase of assets. The fund is set up through the collaboration of TERAJU and financial institutions and it is fully managed by SME Bank, RHB Islamic, MIDF and Maybank Islamic.
As of December 2017, a total of 908 companies have joined the Teras program while MYR1.42 billion of financing has been approved.
The Teras Fund is only for the companies which is under the High Performance Bumiputera Company (TERAS) program.
Majlis Amanah Rakyat (MARA), offers business financing schemes of up to RM5 million. MARA offers several schemes based on the type of business.
For example :
- Express Contract Financing Scheme (SPIKE)
- Business Improvement Loan Scheme (SPiM)
- Business Financing Facility for Persons with Disabilities (PWD)
- Business Financing Scheme Post IPMa (SEMAi)
- MARA Entrepreneur Guarantee Scheme (SJUM)
- MARA Entrepreneur Guarantee Scheme (MEGS)
- Global Entrepreneurs Financing Scheme MARA – EXIM (GEMS)
Visit the Official Portal of MARA for details on each scheme.
6. SME Business Accelerator Programme (BAP)
SME Corp. Malaysia provides the SME Business Accelerator Programme (BAP) – an integrated aid scheme to increase the capabilities of SMEs, including micro businesses, business advisory services as well as financial aid. The programme supports a variety of initiatives to raise capacity so as to allow SMEs to grow locally and internationally. BAP also offers financial aid in the form of joint grants and easy loan schemes to enable SMEs to celebrate new expansion opportunities. SME Corp. Malaysia, along with SME Bank and Bank Rakyat, handles disbursement of BAP’s easy loans. Joint grants, on the other hand, are handled by SME Corp. Malaysia.
Visit the Official Portal of SME Corp. Malaysia for more information.