Background:

The SME Investment Partner (SIP) programme is one of the High Impact Programmes (HIPs) under the SME Masterplan (2012-2020). The objective of this Programme is to enhance access to financing for SMEs, particularly those at early stage through the provision of risk capital financing. The Programme is a co-funding initiative between the Government and private sector with the aim to crowd in private investors to invest into viable SMEs. Under the Programme, SME Corp. will appoint the fund management firm referred to as SME Partner who is responsible to raise funds from private investors which will be matched by funds from the Government through SME Corp. Malaysia. This pooled fund will be channelled to viable SMEs in the form of loan, equity or a hybrid of loan and equity. The Programme is available for SMEs in all sectors including mainstreet firms that have strong high growth potential, innovativeness and in newly emerging areas. This is more well spread compared to current venture capital financing which are mainly for technology-based companies.

Qualifying Criteria:

Potential investee must fulfil basic criteria as below:

a)Have fulfilled the definition of SME

b)Registered with Companies Commission of Malaysia

c)Has at least 51% Malaysian equity

d)In operation between 1 to 3 years only

e)Have exhibited evidence of market traction, especially revenue generation

OBJECTIVE

  • Provide funding for Biotechnology focus areas; and
  • Complement the existing public and private sector fund by providing easy access to financing facilities.

ASSISTANCE

Capital Expenditure

  • Facilities related to the expansion of production, research and
  • services rendered e.g. machineries, laboratory, lab equipment
  • Complement the existing public and private sector fund by providing easy access to financing facilities.

Working Capital

  • Raw materials, consumables or livestock
  • Expenses directly related to R D activities towards improving
  • existing products/services with the exception of payroll/human
  • capital emolument expenses
  • Expenses directly related to business expansion activities to
  • introduce products/services into the global market with exception of
  • payroll/human capital emolument expenses
  • Intellectual property filing and registration
  • Clinical or field trial costs
  • Compliance and regulatory costs

Up to 90% of the total project cost with interest rate of 5.0% per annum on monthly rest

ELIGIBILITY

  1. BioNexus Status company;
  2. Majority Malaysian owned i.e. at least 51% of the equity is owned by Malaysians; and
  3. minimum paid-up capital of RM250,000.
Under PKPKS, there are two main programmes created to assist Bumiputera entrepreneurs in developing their performance and competitiveness. The two main programmes are Groom Big and Satu Daerah Satu Industri (SDSI).

OBJECTIVE

To nurture, groom and elevate Bumiputera micro and SMEs to a higher level.

ASSISTANCE

Participants are provided with training and guidance needed in various stages of development to enhance their capabilities in the following areas:

  • Basic Quality & Production
  • Halal and MeSTI Certifications
  • Packaging Design and Labelling
  • Quality Improvement Practice
  • Value Engineering / Product Development
  • Process Optimisation
  • GMP / HACCP / ISO 9001

ELIGIBILITY

  1. Open for Bumiputera micro and SMEs.
  2. Involved in manufacturing or services.
  3. Registered under the Registration of Businesses (ROB) (Akta Pendaftaran Peniagaan 1956) or incorporated under the Companies (ROC) (Akta Syarikat 2016) for company and registered under Malaysia Cooperative Societies Commission for cooperative.

OBJECTIVE

Bumiputera entrepreneur in manufacturing and selected services sectors who is keen to grow their viable, market-oriented and high potential export business at local and global levels.

FINANCING AVAILABLE

-Financing size Minimum of RM500,000 (minimum)
RM5 million (maximum)
-Financing tenure Up to 10 years

ELIGIBILITY

Entrepreneur

  • Bumiputera on full time business
  • Possesses excellent entrepreneurial characteristics such as honesty, confidence, resilience, positive attitude, creativity and high level of self-discipline
  • Favourable records with financial institutions
  • Willing to attend training courses identified by PUNB

Business

  • Registered as a Private Limited (Sdn Bhd) with sufficient paid-up capital
  • If in partnership, the equity holding of the non-Bumiputera strategic partner must not exceed 30%
  • Good business model and sound execution strategy
  • Capable to generate returns or par with the industry performance
  • Capable to pay existing financing including new ones
  • Existing business in operation for at least 3 years or/and the entrepreneur has vast experience in the proposed field
  • Ready to provide sufficient collateral, if required
  • Shari’ah compliant businesses

OBJECTIVE

Provide financing for SMEs in manufacturing, services and ICT sector

FINANCING AVAILABLE

Financing available under this scheme is for the purpose of working capital, renovation of business premise and purchase of machinery / equipment.

-Financing size RM6,000 – RM250,000
-Service charge 4% per annum
-Financing tenure Up to 7 years

ELIGIBILITY

  • Bumiputera entrepreneurs with valid business license registered with Registrar of Business/Registrar of Company (ROB/ROC)
  • Malaysian citizen age 21 years and above
  • Have a proper and formal place of business (especially in major towns)
  • Fully involved in business
  • At least have 1 year experience in managing the business
  • Involved in the manufacturing/processing, services and ICT sector

OBJECTIVE

To provide financing for franchisor/master franchisee to expand business facilities, facilitate franchisor venture into international expansion and strengthening capability of franchisors/master franchisee to support franchisee expansion

FINANCING AVAILABLE

-Financing size RM100,000 to RM2,000,000
-Profit rate Up to 6% (Bumiputera)
Up to 8% (Non-bumiputera)
-Financing tenure Up to 10 years

ELIGIBILITY

  1. Sdn Bhd Company
  2. Registered with Register of Franchise
  3. Registered with Malaysia Franchise Association
  4. Profitable business and positive shareholders fund
  5. At least 3 outlets

OBJECTIVE

To promote participation of Middle-Level Bumiputera Entrepreneurs (MLBE) in franchise businesses through financing for business expansion and new start-up.

FINANCING AVAILABLE

-Financing size RM50,000 –RM2,000,000
-Profit rate Up to 6 % per annum
-Financing tenure Up to 10 years

ELIGIBILITY

  • A private limited company
  • Profitable business and positive shareholders’ fund reported in audited financial report
  • Minimum 51% Bumiputera equity
  • Achieve minimum requirement in Franchise Readiness Audit (from Consultant Report, PNS or MFA)
  • At least one (1) outlet in operations
  • Operational for more than one (1) year
  • The business must be Syariah compliant

OBJECTIVE

Enhance access to financing at reasonable cost for SMEs in all economic sectors

A. ALL ECONOMIC SECTORS

-Max Financing RM5 million
-Max Tenure 5 years
-Max Financing Rate Up to 8%
-Purpose Capital expenditures or/and Working Capital
-Application Submission
  • All Commercial and Islamic Banks
  • Development Financial Institutions
  • CGC

Application must be submitted through any participating financial institutions (PFIs) and approval will be subjected to the normal credit assessment of the PFI.

-Eligibility Criteria SMEs including Bumiputera enterprises that fulfill the following criteria:

  • Registered with SSM, authorities/district offices in Sabah and Sarawak or statutory bodies for professional service providers;
  • Shareholders’ funds not exceeding RM5 million;
  • Shareholding by Public Listed Companies and Government Linked Companies (if any) shall not exceed 20%; and
  • Malaysians residing in Malaysia hold a minimum of 51% shareholding in the SMEs.

B. PRIMARY AGRICULTURE

-Max Financing RM5 million
-Max Tenure 8 years
-Max Financing Rate 3.75% p.a.
-Purpose
  • Capital expenditures; or/and
  • Working Capital; and
  • Development of agricultural projects:
    • primary food production, integrated agriculture and processing/distribution of food (end-to-end); and
    • half of the total production is sold in the domestic market.
-Application Submission
  • All Commercial and Islamic Banks
  • Development Financial Institutions
  • CGC

Application must be submitted through any participating financial institutions (PFIs) and approval will be subjected to the normal credit assessment of the PFI.

-Eligibility Criteria SMEs involved in the primary agriculture sector that fulfill the following criteria:

  • Registered with SSM or authorities/district offices in Sabah and Sarawak;
  • Shareholders’ funds not exceeding RM5 million;
  • Malaysians residing in Malaysia hold a minimum of 51% shareholding in the SMEs; and
  • Business activities must be within Malaysia.

C. MICRO ENTERPRISE

-Max Financing RM50,000
-Max Tenure 5 years
-Financing Rate Determined by participating financial institution (PFI)
-Purpose Capital expenditures or/and Working Capital
-Application Submission
  1. Alliance Bank Malaysia Berhad;
  2. AmBank (M) Berhad;
  3. Bank Kerjasama Rakyat Malaysia Berhad;
  4. Bank Muamalat Malaysia Berhad;
  5. Bank Pertanian Malaysia Berhad (Agrobank);
  6. Bank Simpanan Nasional;
  7. CIMB Bank Berhad;
  8. Public Bank Berhad;
  9. Malayan Banking Berhad; and
  10. United Overseas Bank (Malaysia) Berhad

Application must be submitted through any PFIs and approval will be subjected to the normal credit assessment of the PFI.

No collateral.

-Eligibility Criteria Micro enterprises that fulfill the following criteria:

  • Registered with SSM, authorities/district offices in Sabah and Sarawak or statutory bodies for professional service providers;
  • Maximum shareholders’ funds not exceeding RM5 million; and
  • Malaysians residing in Malaysia that hold a minimum of 51% shareholding in the SMEs.

OBJECTIVE

To assist eligible Malaysian SMEs to obtain financing by funding 2% (percentage point) of the profit rate charged on the financing provided by 13 participating Islamic Financial Institutions.

FINANCING AVAILABLE

-Financing margin Up to RM5 million (maximum) per SME
SMEs may obtain financing >RM5 million , however only the first RM5 million will be eligible for the 2% profit rebate
-Period for Profit Rebate Period for Profit Rebate

ELIGIBILITY

  • Comply with SME definition.
  • At least 60% Malaysian owned SME.
  • Comply to one or more of the following at the point of application:
    • SME rated with at least 2 stars under SCORE
    • Microenterprise (ME) rated with at least Level 1 under MCORE
    • Certified under 1-InnoCERT
    • Certified under National Mark of Malaysian Brand
    • Accorded the MSC status by MDeC
    • Accorded the Bio-Nexus status by Malaysian Biotechnology Corporation
    • Certified under the Green Tech Cert under Malaysian Green Technology Corporation
    • TeraS selected SMEs under TERAJU

OBJECTIVE

This scheme provides guarantee for Malaysian entrepreneurs operating business abroad to obtain financing from EXIM Bank.

FINANCING AVAILABLE

-Financing is for purchase of assets or renovation and working capital which include raw materials, payroll and other overhead expenses
-Financing size Minimum – RM300,000
Maximum – RM2,000,000
-Financing tenure 5 years

ELIGIBILITY

  • A Malaysian company registered under Companies Act 1965
  • The operating company abroad must be in operation for at least 3 years and has completed Audited Financial Statements with 2 years profit
  • Satisfactory business credit status based on BMC / CCRIS / RAM credit report
  • Meets the conditions set by MARA and Exim Bank
  • Businesses are operating in countries where MARA office is located.

Promoted activities:

  1. Trade centre
  2. Supply depot
  3. Professional services such as consulting, engineering and etc
  4. Other business operation as mandated by EXIM Bank

OBJECTIVE

MARA provide guarantee for financing facilities applied by Bumiputera entrepreneur/ company

FINANCING AVAILABLE

Financing for the purpose of

  • Working capital
  • Assets
  • Project / contract funding
-Financing size Sole Proprietor/ partnership – RM200,000 –RM500,000
Sdn Bhd – RM200,000 –RM5,000,000
Financing allowed up to 3 times only
-Guarantee fees 1% of total guarantee

ELIGIBILITY

For private limited Bumiputera company:

  1. Business has begun its operation and received Audited Financial Statements for at least two (2) years, and is profitable for the past 2 years
  2. Paid-up capital of at least 20% of total funding
  3. Satisfactory business credit status based on BMC / CCRIS / RAM credit report
  4. Meets the requirements set by Bank Rakyat

OBJECTIVE

To provide financing to existing Bumiputera owned businesses.

FINANCING AVAILABLE

-Financing available for working capital, purchase of fixed asset and renovation cost
-Financing size Sole Proprietor / Partnership – RM250,000
Sdn Bhd – RM500,000
-Profit rate 4% per annum

ELIGIBILITY

  1. Bumiputera aged 18 years and above
  2. Experienced / knowledgeable in the intended field of business
  3. Possesses a license / permit / approval letter from the authorities to conduct the business
  4. Able to contribute own capital not less than 10% of the project cost
  5. Involved in business on a full-time basis

OBJECTIVE

Provide microfinance facility for working capital requirements to assist small Bumiputera entrepreneurs in their existing, new start-up business and project implementation.

FINANCING AVAILABLE

-Loan Amount Payment Period
-Small Loan Scheme ( SPK ) >RM 10,000 – RM50,000 Up to 5 years
-Medium Loan Scheme ( SPS ) >RM 50,000 – RM100,000 Up to 10 years
-Repayment loan Up to 3 years
Management Contribution of 4% per annum and mandatory savings of 5% per annum
Loan repayments are made at Regional TEKUN Offices or through BSN, Maybank, Bank Rakyat, Agrobank and Pos Malaysia or via post-dated cheques (if available).

ELIGIBILITY

Micro Loan Scheme (SPM) : RM 1,000 – RM 10,000

  1. Malaysian citizen and Bumiputera.
  2. Aged 18 – 60 years old
  3. Requires a business registration.
  4. Llicence (if available).
  5. Approval period and loan disbursement within 7 days.
  6. Loan approval at Regional level.
  7. Repayment period up to 3 years.
  8. Autodebit loan disbursement.
  9. Part-time or full-time business.
  10. Entrepreneurs are only allowed to have one loan at a time.
  11. Basic Business Information Form (JPP 06) must be filled in.
  12. Must attend the Basic Entrepreneur Seminar/ Course (SAK / KAK)

Source: http://www.smeinfo.com.my

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