How to Get Business Funding in Malaysia

Are you looking to take your brand to the next level? Whether you’re a startup seeking startup capital or a seasoned enterprise looking to expand into new markets, there’s one thing you’re surely going to need—cash.

Luckily, getting business funding in Malaysia is much easier than it used to be. The number of startups in the country has more than doubled in the last few years, and the government is determined to make Malaysia a regional business hub.

With that in mind, Malaysian businesses (or would-be businesses) have a ton of great funding opportunities in 2025. There are government funds, grants, soft loans, equity financing deals, and venture capital all to be explored—to name just a few!

These funding opportunities can help with everything from product development and talent acquisition to market expansion. 

So if you’re wondering how to get funding for a business in Malaysia, we’re going to give you the lowdown. It’s time to get excited about funding opportunities!

Key funding options available for businesses in Malaysia

The Malaysian business funding landscape has come a long way in the last few years. In 2025, businesses have more than a few great financing options available to them that cater to businesses at different stages and could open doors to serious growth.

Let’s take a quick look at where to get the funds to start a business and funds that can be used to attain new assets:

• Government grants and schemes: The Malaysian government has its sights set on innovation. With that aim, they offer a wide range of grants supporting businesses (especially startups and SMEs). The best part? These grants don’t usually require repayment. For example:
• Cradle Fund (CIP SPARK provides early-stage funding for tech startups)
• SME Corp
• MDEC (which supports digital businesses through programs like the Digital Content Grant and SMART Automation Grant)
• Teraju
• Venture capital (VC): VC funding is popular, especially for tech startups. Firstly, it’s equity financing, so it doesn’t require repayment. And secondly, borrowers will usually get mentoring as well as cash. Malaysian VC companies include:
• 500 Global
• Gobi Partners
• Malaysia Venture Capital Management Berhad (MAVCAP)
• Bank loans: Traditional bank financing remains a go-to for many businesses. Big banks offer various loan types,although they may require stronger credit history and more collateral than other funding methods. Banks offering Malaysian business loans include:
• Maybank
• CIMB
• RHB
• Angel investors: Ever heard of an angel investor? That’s an individual who personally funds a startup, usually at a very early stage and usually in exchange for equity. Malaysian investor networks to check out include:
• Malaysia Business Angel Network (MBAN)

Now, let’s take a closer look at each of these funding options:

Government grants and financial assistance

In Malaysia, the government actively encourages growth, particularly of startups and SMEs through comprehensive government grants.

If you’re looking for government-backed assistance, here are some avenues to explore:

• Cradle fund: Cradle is very well known in the startup world, and it’s no wonder why. Their early-stage grants help with everything from product development and market validation to commercialisation. That said, they’re mostly aimed at tech startups. But if that’s you, check out CIP SPARK and CIP SPRINT (Cradle’s two main grants).
• Malaysian Technology Development Corporation (MTDC): Tech startups looking to break out of universities into the wider world might want to consider the MTDC. They support research and development (R&D) outcomes through funding and advisory services like the Commercialisation of R&D Fund (CRDF) and Business Start-Up Fund (BSF).
• Malaysia Digital Economy Corporation (MDEC): The MDEC is the best friend of digital and creative industries in Malaysia. They’re currently supporting digitalisation through several major grants, including the Digital Content Grant and Smart Automation Grant.

These are all great options. One thing to keep in mind is whether you’re getting a loan or a grant. A loan, you’ll have to pay back, and a grant is “on the house”—that’s a big distinction!

Venture capital and angel investors

We get it. Approaching venture capitalists can be scary. It requires heavy preparation, a watertight business pitch, figures, stats, a growth plan—the list goes on.

But if you can attract the attention of VC firms or angel investors, you’re golden. 

For venture capital, pitch events and incubators are the way to go. Platforms like pitchIN and MaGIC provide access to investor networks and pitching opportunities.

Let’s see a couple of real-world examples of companies that reached the stars from VC investment:

• Grab: You’ve probably heard of or used the Grab app. It’s one of Southeast Asia’s top apps. But did you know it started out in Malaysia as MyTeksi? That’s right, after receiving early VC funding and later from major investors like SoftBank, it scaled regionally.
• StoreHub: Another Malaysian giant. Though a little more specialized. StoreHub is a cloud-based point-of-sale platform. It raised millions in VC funding before becoming the titan it is today. Their growth potential in Southeast Asia and a scalable tech solution clearly left its mark on investors!

So what about angel investors? Well, this is more common at the “seed stage”. If that’s you, and you’re interested in angel investment, seek out an investor with experience in your industry.

• FashionValet: FashionValet is one of Malaysia’s big success stories. And they owe it in part to their early backing from angel investors!

Loans and crowdfunding options

Of course, if VC isn’t for you, you can always go for a traditional loan. You’ll have to pay these back, but, on the other hand, you won’t have to give up any equity exchange. That could actually make a loan cheaper in the long run!

To nab a traditional loan, businesses will usually need to demonstrate a few things. For example, that they have collateral,a solid financial history and a demonstrable cash flow.

Malaysian businesses have a few loan options to choose from:

• Traditional loans: A strong staple for many SMEs. The nation’s top banks all offer exciting business loans to cater for different needs (think working capital loans, term loans, equipment financing, and trade credit facilities). Banks to check out include:
• Maybank
• CIMB
• RHB
• Public Bank
• SME Bank
• Bank Rakyat

Traditional loans not cutting it? Why not try an emerging financing option like crowdfunding? Crowdfunding is increasingly popular, especially for startups and businesses seeking alternative funding routes without giving up equity or taking on heavy debt.

Top Malaysian crowdfunding platforms—approved by the Securities Commission (SC)—include:

• pitchIN
• Ethis Malaysia
• Fundaztic (for peer-to-peer [P2P] lending)

What makes these platforms so great? Businesses can access smaller funding amounts while sidestepping the stricter requirements other lenders may impose.

How to fund a business with no money

Got an amazing business idea but no cash to give it life? It’s a familiar problem facing thousands of Malaysian entrepreneurs every single day. We understand the difficulties.

It can be tough to know how to fund a business with no money. However, we’re here to cheer you up and tell you it’s 100% possible.

While getting, say, a traditional loan could be tricky without any capital whatsoever, there are other options available to you!

Here are a few ideas:

• Bootstrapping: Wondering how to get funds for a business without any startup capital? Try bootstrapping. This is where the business owner essentially funds early-stage business using personal savings. You’ll have to tighten your belt and keep overheads low, but it’s certainly possible.
• Bartering services: Another option is bartering. Sure, it sounds old-fashioned, but many lone founders use this method. It involves exchanging services rather than paying (for instance, a web designer might trade design work for legal or accounting services).
• Crowdfunding pre-sales: Many startups will pre-sell products and use that capital to produce them. Sure, you might not make a profit at this stage, but it’s a good way to get the ball rolling.
• Freelancing and side gigs: Need personal cash to fund your business idea? If you can squeeze a few hours out of your day, why not try working a side gig to save up funds? After all, every little bit helps.

Leveraging non-equity funding and bootstrapping

Self-funding, or bootstrapping, may sound like a tough ask—and it is. It requires many months, sometimes years, of extreme discipline and budgeting. However, it’s not without its appeal, too.

For starters, those who self-fund don’t owe anyone anything—be that a loan repayment or equity shares. You, the founder, retain full control. Tempting, right?

Malaysian startup TheLorry actually began this way, with the founders using personal savings before securing external investment.

Sweat equity is another powerful funding alternative. That’s where founders invest time, skills, and effort in lieu of capital. Like bootstrapping, this involves a lot of time and effort. You may even end up building the product yourself and handling all your own operations—or, of course, with the help of a co-founder.

Considering this route? Here are a few valuable tips:

• Focus on cash flow-positive activities from day one (like pre-orders or service-based offerings).
• Track your time and contributions to reflect the value of your sweat equity.
• Consider drafting a simple equity agreement if working with partners to avoid future disputes.
• Keep overheads minimal by working from home, using free tools, and outsourcing only when necessary.

Alternative funding strategies: Crowdfunding and peer-to-peer lending

Self-funding isn’t the only way to break the mold when it comes to funding. There are many other alternative financing methods to try your hand at. Crowdfunding and peer-to-peer (P2P) lending are two innovative examples.

So if you’re wondering where to get funds to start a business or to attain new assets, check these out:

• Crowdfunding: Instead of getting a large lump sum from a single investor, try getting small sums from many people. After all, there are thousands of people who could potentially chip in a small amount. These days, crowdfunding is usually done through online platforms like pitchIN and MyStartr.Signature Market is a great example of a brand that used crowdfunding—raising over RM1 million on pitchIN!
• Peer-to-peer lending (P2P): On the surface, this may sound just like other lending. But P2P is different. connects businesses directly with individual or institutional lenders who offer loans at agreed interest rates. That means short-term financing without the rigid requirements of traditional banks. And platforms like Funding Societies and Fundaztic make it easier than ever.

Where to find funding for a business idea in Malaysia

Okay, so we’ve covered a lot of ground when it comes to securing funding for a startup. But what if you’re not even technically a startup yet? What if you’re in the very early stages and all you’ve got is an idea?

Well, you’ll be pleased to hear it’s still possible to secure business funding. Malaysia’s startup ecosystem is supported by numerous accelerators, incubators, and startup hubs that not only provide mentorship and networking but also open doors to funding opportunities.

Here are a few places to check out:

• MaGIC (Malaysian Global Innovation & Creativity Centre): A top player. They offer various accelerator programmes—such as the Global Accelerator Programme (GAP)—which connects founders with the right people.
• MRANTI (Malaysian Research Accelerator for Technology and Innovation): MRANTI focuses on commercializing research and deep-tech innovations through grants and support services.
• Sunway iLabs: Get access to corporate partners and investor networks.
• 1337 Ventures: Pre-accelerator programmes and seed funding opportunities—great for super early stage.
• WORQ and Common Ground: While not technically funders, these co-working spaces regularly host pitch events and meetups.

Popular startup ecosystems and funding platforms in Malaysia

Looking for the perfect place to give your business idea life? You can’t do much better than a startup hub as they’re packed to the brim with the right people—not to mention people (or people who know people) willing to invest in exciting new business opportunities.

We’ve already mentioned most of the big players in this field. To recap, they include:

• MaGIC (specifically the Global Accelerator Programme)
• 1337 Ventures (try the pre-accelerator programme Alpha Startups)
• Malaysia Business Angel Network (MBAN)
• pitchIN
• Sunway iLabs (Super Accelerator programme)

Note that these kinds of opportunities can be extremely competitive. After all, they’re where Malaysia’s top companies of tomorrow go to get their spark—they’re packed with talent and high-level investors looking for the next big thing. We believe you can be one of them.

So remember to apply online and attend as many startup events as possible!

Conclusion: Making the right choice for your business funding

We know it’s a daunting process. But many have stood where you stand now and gone on to achieve great things. The funding you need could be just around the corner—all you need to know is which corner to turn.

Malaysia offers a diverse and growing range of funding options to support businesses at every stage, from ideation to expansion.

Each funding model has its own pros and cons. You should take the time to carefully evaluate your business’s position and needs before applying for any business funding.

Online accounting software like QuickBooks can help you gather all the documentation you need to make a killer business proposal. Try it today for free and see for yourself!