KUALA LUMPUR (Jan 29): The Ministry of Entrepreneur and Cooperatives Development (MECD) on Thursday introduced RM100 million in financing facilities targeted at Malaysian Chinese micro, small and medium enterprises (MSMEs), to be channelled through SME Bank and Bank Kerjasama Rakyat Malaysia Bhd (Bank Rakyat).

Newly appointed minister Steven Sim Chee Keong said the allocation comprises RM50 million each under SME Bank’s Success programme and Bank Rakyat’s BR Prosper-i scheme, doubling the RM50 million initially announced for the initiative.

“This is a dedicated financing programme for Chinese entrepreneurs who are Malaysian citizens. Our aim is to ensure more companies and entrepreneurs can benefit from these facilities,” Sim said in a press conference after officiating the programme’s launch at the Bank Rakyat building here.

He said the initiative is intended to provide accessible capital to support business expansion, operational strengthening and technology adoption, particularly for small and micro enterprises.

The financing facilities will remain available until the allocated funds are fully utilised, with financing tenures ranging from up to five years for working capital and up to 20 years for asset acquisition, depending on the programme.

No collateral is required as the financing facilities are guaranteed by Syarikat Jaminan Pembiayaan Perniagaan Bhd (SJPP), and applications can be made either online or physically at SME Bank and Bank Rakyat branches.

Under SME Bank’s Success programme, eligible MSMEs may apply for financing ranging from RM100,000 to RM3 million, with profit rates starting from 3.5% per annum. The facility is open to all economic sectors except primary agriculture, and is intended to fund working capital and capital expenditure.

Meanwhile, Bank Rakyat’s BR Prosper-i scheme offers financing of RM1,000 to RM1 million, with profit rates starting from 4.5% per annum, targeting sectors such as education, healthcare, utilities, food & beverage, digitalisation, manufacturing and construction, among others.

“These are low-cost financing facilities aimed at helping businesses grow — whether to expand operations, strengthen cash flow or invest in new technology,” Sim added.

To qualify, applicants must be MSMEs as defined by SME Corp Malaysia, have at least two to three years of operating history, and be registered with the Companies Commission of Malaysia (SSM) or relevant authorities.

Eligible companies must also be majority-owned by Malaysian Chinese shareholders, or have a Malaysian Chinese chief executive officer or managing director holding a minimum equity stake, subject to specific programme criteria.

The RM100 million allocation for the Chinese community forms part of the government’s broader effort to ensure inclusive access to financing across different business communities, Sim noted.

The announcement followed a similar financing facility previously pledged in December, where Sim increased Tekun Nasional’s Bumiputera financing allocation to RM500 million in 2026 from RM300 million last year, while financing for Indian entrepreneurs under the Indian Community Entrepreneur Development Scheme (Spumi) would be raised to RM50 million from RM30 million.

SME Bank — a subsidiary of Bank Pembangunan Malaysia Bhd (BPMB), which is wholly-owned by Minister of Finance (Incorporated) — is a development financial institution regulated by Bank Negara Malaysia and supervised by MECD.

Meanwhile, Bank Rakyat — an agency of MECD — is the country’s largest Islamic cooperative financial institution.

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