The government has rolled out a RM100 million dedicated financing package for Chinese MSMEs, signalling a stronger push towards inclusive access to business funding across Malaysia’s SME landscape.
The initiative was announced by Steven Sim Chee Keong, Minister of Entrepreneur Development and Cooperatives, and will be channelled through SME Bank and Bank Rakyat, with RM50 million allocated to each institution.
The allocation doubles the RM50 million initially announced in December, reflecting growing demand and the government’s intention to widen capital access for Chinese MSMEs, particularly at the micro and small enterprise level.
First Dedicated Financing Programme for Chinese MSMEs
“This is a dedicated financing programme for Chinese entrepreneurs who are Malaysian citizens,” Sim said at the launch held at Bank Rakyat’s headquarters in Kuala Lumpur.
“Our aim is to ensure more companies and entrepreneurs can benefit from these facilities, whether to expand their businesses, strengthen operations or adopt new technology.”
This marks the first time the ministry has introduced a financing product specifically tailored for Chinese MSMEs, a group Sim noted had previously not been covered under targeted community-based schemes.
Two Financing Schemes, One Common Goal
The RM100 million initiative is delivered through two flagship programmes:
1. SME Bank – Success Programme
- Financing amount: RM100,000 to RM3 million
- Profit rate: From 3.5% per annum
- Purpose: Working capital and capital expenditure
- Tenure:
- Up to 5 years for working capital
- Up to 20 years for asset acquisition
- Up to 5 years for working capital
- Open to most sectors except primary agriculture
2. Bank Rakyat – BR Prosper-i Scheme
- Financing amount: RM1,000 to RM1 million
- Profit rate: From 4.5% per annum, with higher tiers depending on risk profile
- Target sectors include education, healthcare, utilities, food and beverage, digitalisation, manufacturing and construction
- Tenure:
- Up to 5 years for micro enterprises
- Up to 7 years for SMEs
- Up to 5 years for micro enterprises
“These are low-cost financing facilities aimed at helping businesses grow, whether to expand operations, improve cash flow or invest in technology,” Sim said.
No Collateral, SJPP Guarantee
A key feature of the initiative is that no collateral is required. All financing is guaranteed by Syarikat Jaminan Pembiayaan Perniagaan Bhd (SJPP), making the schemes more accessible to small and micro Chinese MSMEs that may lack assets for traditional loan requirements.
Applications can be made online or physically at SME Bank and Bank Rakyat branches nationwide, and the financing facilities will remain available until the RM100 million allocation is fully utilised.
Who Is Eligible?
To qualify, applicants must:
- Be classified as MSMEs under SME Corp Malaysia’s definition
- Have at least two to three years of operating history
- Be registered with the Companies Commission of Malaysia (SSM) or relevant authorities
- Be majority-owned by Malaysian Chinese shareholders, or have a Malaysian Chinese CEO or managing director with a minimum equity stake, subject to programme criteria
Part of a Bigger Inclusivity Push
Sim said the RM100 million allocation for Chinese MSMEs forms part of the government’s wider effort to ensure equitable access to financing across all business communities.
Previously announced initiatives include an increase in Tekun Nasional’s Bumiputera financing to RM500 million in 2026, up from RM300 million last year, as well as a higher allocation for Indian entrepreneurs under the SPUMI scheme, which was raised to RM50 million from RM30 million.
Together, these measures underscore the government’s broader objective of strengthening Malaysia’s SME ecosystem by ensuring that Chinese MSMEs, alongside other communities, have better access to affordable capital to grow and compete.
“These initiatives align with our ABCD strategy, particularly ‘C’ — capital accessibility,” Sim said.
“We want Malaysian businesses to have stronger funding sources so they can grow sustainably.”
Strengthening the SME Backbone
SME Bank, a development financial institution under Bank Pembangunan Malaysia Bhd, and Bank Rakyat, Malaysia’s largest Islamic cooperative bank, both operate under the purview of the Ministry of Entrepreneur and Cooperatives Development.
Together, the two institutions play a critical role in strengthening Malaysia’s SME backbone, and with this latest RM100 million initiative, the government is sending a clear signal: growth capital should be accessible, inclusive and community-driven.
Source: here
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