Fund For Small And Medium Industries 2


To ensure eligible SMEs in both the export and domestic-oriented sectors have access to financing at reasonable cost.

Maximum financing rate : 4% to 6% per annum

Maximum tenure : 5 years

Minimum financing : RM50,000

Maximum financing : RM5 million

Participating financial institutions / Implementing Ministry / Agency

  • All commercial banks and Islamic banks
  • Bank Perusahaan Kecil dan Sederhana Malaysia Berhad (SME Bank)
  • Malaysian Industrial Development Finance Berhad
  • Bank Pertanian Malaysia
  • Sabah Development Bank Berhad

Eligibility criteria

  • Business enterprise based on the definition of SMEs [Link]
  • Maximum shareholders' funds not exceeding RM2 million;
  • Shareholding by Public Listed Companies or Government-Link Companies (if any) should not exceed 20%;
  • Malaysian residing in Malaysia and owned minimum 51% shareholding incorporated under the Companies Act 1965, the Co-operative Societies Act 1993, the Societies Act 1966, registered with the Companies Commission of Malaysia or any other authoritative bodies; and
  • Not more than 7 years in operation. However participating financial institution may consider cases of SMEs who have been in operation for more than seven years.

Purpose of financing

  • Expansion of productive capacity
  • Working capital or
  • Both of the above

Financing should not be used for:

  • Purchase of shares;
  • Refinancing of existing credit facilities;
  • Purchase of land/Real estate investment;
  • Properties development;
  • Investment holding company;
  • Activities where stock in trade is money (including credit, leasing, factoring and insurance businesses);and
  • Non-economic or non-healthy activities.

Eligible sector / Types of financing

  • All economic sectors / All types of facilities.

Application procedure

Applications should be made through any participating financial institutions. Approvals will be subject to the normal credit approval procedures and security requirements of the individual participating financial institutions.

Development Finance and Enterprise Department
Bank Negara Malaysia
Jalan Dato' Onn
50480 Kuala Lumpur
Tel: 03 – 26913764
Website: www.bnm.gov.my



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