PETALING JAYA: SME Corporation Malaysia is introducing a new financing programme through the Business Accelerator Programme (BAP) Alternative Financing Programme 2025 for small and medium enterprises in the country.
A total of RM35 million has been allocated for the scheme, which offers syariah-compliant financing of up to RM400,000 to eligible SMEs at a competitive profit rate of 3.5% per annum, with the possibility of 40% of the funding being converted into grants.
microLEAP, a syariah-compliant peer-to-peer financing platform that is regulated by the Securities Commission Malaysia (SC), has been appointed as the financing intermediary under the programme.
With the additional allocation from SME Corp, the total funds under the collaboration with microLEAP since 2021 amounts to RM70 million now.
SME Corp CEO Rizal Datuk Nainy said the agency is proud to collaborate with innovative financing platforms such as microLEAP in delivering solutions that go beyond traditional lending.
“This programme reflects our commitment to rethinking SME support, not just through financing, but by embedding incentives that reward financial discipline and business growth.
“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, in line with our target to upscale small enterprises to medium-sized enterprises from 1.6% currently to 5% by 2030,“ he said in a statement.
Founder and CEO of microLEAP Tunku Danny Nasaifuddin Mudzaffar said the programme is a product of listening to small business owners, to market challenges and to policy direction.
“We believe financing should not just be accessible and affordable, it should also reward good financial discipline. Through our collaboration with SME Corp, we’re proud to offer a financing product that does just that.
“We’ve always believed that 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 added.
The programme offers assistance for both working capital and business improvement purposes, namely machinery and equipment purchases; environmental, social and governance adoption; product certification; advertising and promotion; and information and communication technology adoption.
Only SMEs with a timely repayment track record will be eligible to apply for the grant conversion of up to 40% of their financing, subject to approval from SME Corp.
SMEs in Malaysia make up more than 96% of all businesses, yet many remain underserved by the traditional financial system. With the new programme, SME Corp and microLEAP aim to close that gap, not just with capital, but with confidence.