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Government Funds / Financing Schemes

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According to BNM Annual Report 2006, there were 94 Government funds/financing schemes for SMEs with a total allocation of RM25 billion, as at end-2006. Five of these special funds were established by Bank Negara Malaysia with a total allocation of RM11.4 billion.

SME BANK

SME Bank or Bank Perusahaan Kecil & Sederhana Malaysia Berhad is the result of a merger between Bank Industri & Teknologi Malaysia Bhd and Bank Pembangunan & Infrastruktur Malaysia Bhd (BPIMB). The Bank started its new function on 3 October 2005 as a DFI to nurture and meet the unique needs of small and medium enterprises (SMEs). As a one-stop financial centre responding to the funding and business growth needs of Malaysian SMEs, the Bank complements existing products and services offered by commercial banks through a comprehensive and integrated financial and business advisory services. Its primary role is to contribute towards the growth of a more robust entrepreneurial community in Malaysia. A wholly-owned subsidiary of Bank Pembangunan Malaysia Berhad, the Bank operates through its head office in Kuala Lumpur and 16 branches nationwide

SME Bank is focused on providing financing for micro businesses, small businesses and medium-sized businesses. The Bank offers five loan schemes specially designed to help different type of small and medium-sized enterprises flourish in the years ahead, namely SME Professional, SME Start-up, SME Procurement, SME Franchise and SME Global.

SME Bank’s role is to complement the role of existing financial providers of SME loans. The bank focuses on businesses with potential to grow but seen as relatively unviable by the commercial banks to deserve financial assistance. The SME Bank aims to become a one-stop centre for all SMEs with annual revenues up to RM25 million in the manufacturing sector and up to RM5 million in the services sector.

In addition to providing financial assistance, SME Bank also offers comprehensive end-to-end advisory support to help nurture SMEs from start-ups or small businesses until they expand to become large corporations. The advisory services include business assessments, business matching, business dialogues/conferences and research and knowledge linkages.

For more information, please contact:

SME Bank
Menara SME Bank
Jalan Sultan Ismail
P.O. Box 12352
50774 Kuala Lumpur
Malaysia
Tel: 603-2615 2020 / 603-2615 2828
Fax: 603-2692 8520 / 603-2698 1748
Website: www.smebank.com.my

MALAYSIAN INDUSTRIAL DEVELOPMENT FINANCE BERHAD (MIDF)

Malaysian Industrial Development Finance Berhad (MIDF) was incorporated in 1960 with the role of promoting the development of SMIs in Malaysia by providing medium to long term financing facilities. MIDF’s financing facilities are mainly extended to new industrial ventures as well as existing enterprises that are undertaking expansion, modernization, diversification and/or relocation programmes in manufacturing-related services, infrastructure, utilities, tourism and other service sectors.

One of the many funds offered by MIDF is the Fund for Cross Border Investments. This Fund was introduced in June 2004 with an initial allocation of RM50 million to assist Malaysian companies, especially those in the labour intensive manufacturing sectors to undertake new investments within the ASEAN region.

MIDF is one of the DFIs designated by the government to manage and disburse funds under various special loan schemes. The special loan schemes tailored for SMEs include:

  • Soft Loan Scheme for Small and Medium Enterprises (SLSME)
  • Soft Loan Scheme for Factory Relocation (SLFR)
  • Soft Loan Scheme for ICT Adoption (SLICT)

For more information, please contact:

Malaysian Industrial Development Finance Berhad (MIDF)
Menara MIDF
82, Jalan Raja Chulan
50200 Kuala Lumpur
Malaysia
Tel: 603-2173 8888
Fax: 603-2173 8877
Website: www.midf.com.my
E-mail: This e-mail address is being protected from spambots. You need JavaScript enabled to view it

 

CREDIT GUARANTEE CORPORATION MALAYSIA BERHAD

Credit Guarantee Corporation (CGC) was established in 1972 with its majority shareholding of 79.3% held by Bank Negara Malaysia and the remaining shareholding of 20.7% held by all commercial banks and finance companies operating throughout Malaysia. CGC aims to assist SMEs with no or inadequate collateral to gain access to credit facilities from financial institutions by providing them with guarantee cover on such facilities. CGC formulates and manages credit guarantee schemes and collaborates with its partners i.e. commercial banks and finance companies in assisting SMEs financially. CGC operates through representations in more than 2,600 of its partners’ branches located throughout Malaysia.

In line with the government’s effort to develop businesses in priority sectors, CGC has adopted the role of a DFI to financially assist SMIs which form the base for industrial development. CGC also works closely with Bank Negara Malaysia and the Ministry of Entrepreneur and Cooperative Development in performing its functions.

CGC offers the SMEs the Flexible Guarantee Scheme (FGS) which provides guarantee for government-aided loans such as the Fund for Small and Medium Industries 2 (FSMI 2), New Entrepreneur Fund 2 (NEF 2) and Rehabilitation Fund for Small Businesses (RFSB). The funds are designed to allow SMEs with viable projects or businesses have easier access to credit facilities. Loan applications are to be made at participating financial institutions.

The main characteristics of the FGS will include a guarantee cover ranging from 30% to 80% as this is a requirement by participating financial institutions. An annual guarantee fee is imposed and this is calculated based on the guarantee cover issued. The fee is required to be paid in advance but the fees are usually borne by the participating financial institution. Interest rates chargeable by CGC are ranging from 0.8% to 2.15% per annum for the unsecured portion of the loan whereas for the secured portion of the loan, interest rates range from 0.5% to 1.85% per annum.

Other guarantee schemes include Direct Access Guarantee Scheme (DAGS), Direct Access Guarantee Scheme Start Up (DAGS Start-up), Direct Bank Guarantee Scheme (DIRECT BG), Small Entrepreneur Guarantee Scheme (SEGS), Islamic Banking Guarantee Scheme (IBGS), Franchise Financing Scheme (FFS), Direct Access Guarantee Scheme Islamic (DAGS-i) and Credit ENHANCER Scheme (ENHANCER).

From the financing facilities identified, SMEs will have the option of approaching commercial banks or financial intermediaries such as DFIs in evaluating the types of financial assistance required. In enabling SMEs to reach out to various lenders, financial intermediaries are actually helping banks to reach out to a larger customer base. This will in turn enable banks to play a supporting role in promoting priority sectors through increased transactions with SMEs.

For more information, please contact:

Credit Guarantee Corporation Malaysia Berhad (CGC)
Level 13, Bangunan CGC
Kelana Business Centre
97, Jalan SS7/2
47301 Petaling Jaya
Selangor, Malaysia
Tel: 603-7806 2300
Fax: 603-78063308
Website: www.iguarantee.com.my
E-mail: This e-mail address is being protected from spambots. You need JavaScript enabled to view it


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Comments 

 
+11 #6 Madinah Binti Abdullah 2010-10-26 07:47
I am planning to open a small stall, where can I get a loan start the business and this my first business.

What are terms like and where do I get the application.
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-4 #5 Jessica 2010-03-23 03:43
Does anyone from this site reply? would like to know more about the loan, my situation same with David but my company is more than 1 year.
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-4 #4 Peh 2009-11-19 05:11
I am plaining to start my small business for plastic injection, and i wish to apply for the samll business loan. may i know where can i apply for and what must prepare for apply.
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+2 #3 jacob 2009-08-29 07:27
Hi david

Why not check wit Agro bank.....I hv done it and as my company is 10 month old...
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+9 #2 david lim 2009-06-02 19:41
Dear Sir

I had started up my trading business about 3 months back, and now order is coming in smoothly and i will need more capital on buying goods from factory. May i know what kind of loan can i apply since my company is just newly set up.

Best Regards
DAVID lIM
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-4 #1 Suba Nair 2009-05-09 07:08
Dear Sir / Madam,
I am planning to start up a restaurant and this is my first business. I would like to know more about financing as I have very lease knowledge about this. I am interested to know if I am alligible to apply for the DAGS Start Up loan scheme and what are the criteria or documentations needed to go from here.

thanks you
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