Small and medium-sized enterprises (SMEs) in Malaysia are set to benefit from a fresh boost of support as SME Corporation Malaysia (SME Corp) unveiled the Business Accelerator Programme (BAP) Alternative Financing Programme 2025, in collaboration with microLEAP.
With an allocation of RM35 million, the scheme introduces an innovative approach that not only offers affordable financing but also rewards SMEs that demonstrate strong financial discipline.
SME Financing with Rewards
Under the programme, SMEs can access up to RM400,000 in shariah-compliant financing at a profit rate of 3.5% per annum. What sets this initiative apart is the option for up to 40% of the financing to be converted into a grant, provided repayments are made on time.
“This is not simply another loan scheme. It has been designed to reward financial discipline and to directly support growth,” SME Corp and microLEAP said in a joint statement.
The collaboration has effectively doubled their total allocation since 2021, bringing the combined funds to RM70 million.
Scaling Malaysian SMEs
SME Corp CEO Rizal Nainy said the scheme reflects the agency’s mission to upscale SMEs into larger players within the economy.
“By enabling up to 40% grant conversion, we are not only reducing the burden of repayment but actively investing in the future of high-potential Malaysian SMEs that are ready to be scaled up,” Rizal explained.
He added that SME Corp is targeting to increase the number of small enterprises graduating into medium-sized businesses from 1.6% currently to 5% by 2030.
Flexible and Accessible
microLEAP founder and CEO Tunku Danny Nasaifuddin Mudzaffar emphasised that accessibility was a key feature of the new financing option.
“SMEs should not need three years of audited accounts or collateral to access financing. If they’re generating revenue and growing, and they can afford the financing, we will be there to support them,” he said.
The financing is designed to cover working capital and business improvements, including:
- Machinery and equipment purchases
- ESG adoption
- Product certification
- Advertising and promotion
- ICT adoption
A Boost for Malaysia’s SME Ecosystem
The launch of the scheme underscores Malaysia’s broader strategy to strengthen its SME ecosystem, a sector that contributes significantly to the nation’s GDP and employment.
By combining financing with grant incentives, SME Corp and microLEAP aim to create a system that rewards accountability while enabling businesses to expand with confidence.
Source: here
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