Apart from banking institutions, which still remain the largest financing provider to SMEs, SMEs could also obtain financial assistance from Government Funds including Bank Negara Malaysia Special Funds. These funds are made available to SMEs as part of the Government’s continuous effort to nurture and support deserving SMEs to have access to financing.

Bank Negara Malaysia SME Special Funds
Bank Negara Malaysia provides five special funds for SMEs with a total allocation of RM11.4 billion, aimed at enhancing access to financing at reasonable costs, with lending rates ranging from 3.75% to 6%. The funds are channeled through participating financial institutions comprising banking institutions, development financial institutions and ERF Sdn Bhd. These funds are:

Since the establishment of the funds, RM15.6 billion of loans has been approved to more than 32,600 SMEs.

Government Funding for SMEs
The Government via its Ministries and Agencies also provide financing for SMEs. The objectives of the funds and schemes are to:
• encourage SMEs to be more innovative in using and adapting to existing and new technologies and processes
• improve product quality
• assist SMEs in conducting market and technology feasibility studies, preparing business plans and formulating
domestic and export market strategies
• assist youth, including graduates, to venture into business

For more details on Bank Negara Malaysia Special Funds and Government Funding,