PETALING JAYA: SME Corporation Malaysia, an agency under the Ministry of Entrepreneur and Cooperatives Development, and Funding Societies, the largest unified SME digital finance platform in Malaysia and Southeast Asia, have allocated an initial fund of RM6 million for bumiputera youth entrepreneurs under the newly launched Bumiputera MSMEs Financing Initiative (BMFI).
This new funding initiative is aimed at enhancing access to financing for micro, small and medium enterprises which participated in SME Corp’s Tunas Usahawan Belia Bumiputera (TUBE) programme. Funding Societies, as the appointed financial partner, will extend its digital financing solutions to the young entrepreneurs through its Tunas Financing-i programme.
Under TUBE, 7,040 registered entrepreneurs and TUBE alumni will have the opportunity to apply for Tunas Financing-i, with minimal documentation and zero collateral requirement. The programme offers financing up to RM100,000 with a maximum tenure of 24 months at a competitive profit rate of only 2% per annum. MSMEs can also benefit from a streamlined online application process, with approvals as fast as within two working days.
SME Corp CEO Rizal Nainy said specific allocation for bumiputera youth entrepreneurs under BMFI is befitting due to their important role with regard to the Madani Economy framework’s goal in achieving balanced, inclusive and sustainable growth.
“We hope to leverage on this partnership with Funding Societies to provide innovative and quick short-term financing solution for bumiputera MSMEs through a digital platform, in addition to existing government funding. Hence, it is envisaged that more Bumiputera MSMEs will take advantage of this initiative to address their financing needs, especially in working capital.
“Access to financing remains a major issue that hinders MSMEs growth including the bumiputera entrepreneurs. Therefore, the government is committed to support MSMEs in this area, as indicated by the substantial amount allocated under the 2024 Madani Budget. Access to financing continues to receive the largest allocation amounting to RM32.15 billion (73.7%) of the allocation for MSMEs totalling RM43.6 billion,” he added.
Funding Societies Malaysia country head Chai Kien Poon said, “Collaborating with SME Corp. Malaysia marks a key milestone in our journey to foster the growth and resilience of Bumiputera MSMEs. This partnership is a testament to our shared vision of equipping these dynamic entrepreneurs with the financial assistance they need to thrive and contribute to the nation's economy.”
