As an entrepreneur, you want to set yourself up for the greatest possible chance of success. Many Malaysian entrepreneurs face concerns as they start their new businesses, and one of those is how to raise the money needed to get their enterprises off the ground. Fortunately, you have several viable options when it comes to funding your new business.
Finding Government Grants for Malaysian Small Businesses
The government offers several types of small business grants for Malaysian businesses to help new businesses launch. Funding sources include:
- Matching grants from the Small and Medium Industries Development Corporation (SMIDEC) — This funding source provides matching grants of up to 50% to most types of small business startups in the manufacturing and services sectors. Some manufacturing startups may be eligible for grants of up to 80% of costs, with a cap of RM100,000.
- Cradle Investment Programme (CIP) — If you run a tech startup, check out this Ministry of Finance funding source designed to move you from the “great idea” stage to a functional business. Innovative tech ideas that show strong commercial potential are eligible for up to RM50,000 per idea.
- Multimedia Development Corporation (MDeC) Pre-Seed Fund — If you’re an entrepreneur in the tech field with a business plan but without an existing company, this fund stands ready to bring your plans to fruition. Up to RM150,000 is available, with additional support that includes use of shared lab facilities at MSC Malaysia Status Incubators as well as a mentoring programme.
- Enterprise Innovation Fund (EIF) — This fund is designed to promote innovation in commercial ventures. The Ministry of Science, Technology and Innovation (MOSTI) runs this fund, which provides grants ranging from RM20,000 to RM250,000 over a period of up to 18 months.
- Malaysian Biotechnology Corporation Seed Funds —These commercialisation grants are designed for businesses in the biotech field. Expect to receive a maximum of RM 2.5 million, which is disbursed over two years.
Applying For Small Business Bank Loans
While Malaysian banks have a solid history of lending money to businesses, they typically want to see your track record and profitability, which may make getting bank loans a little more difficult if you’re starting a business. In particular, they’re likely to want to see what kind of collateral you have — again, something that not all startups can offer.
As a startup, you may find borrowing opportunities at the SME Bank , a subsidiary of Bank Pembangunan Malaysia Berhard. The SME Bank makes loans to innovative small and medium-size enterprises in all phases of growth, with the SME Start-Up programme designed for new businesses that are ready to launch their products and services, including those with insufficient collateral or history to qualify for standard bank loans.
Some government loans are also available for startups. Check out the offerings from the Malaysian Industrial Development Finance Berhad (MIDF), the Green Technology Financing Scheme (GTFS), and the Intellectual Property Financing Fund.
As you get your business up and running, you can track your incoming funds — whether from grants, investors, loans, or sale of your products — and your spending using QuickBooks Online. Staying on top of the numbers makes it possible to repay any borrowed funds and show investors what you’ve done with their money, so you can keep your new enterprise in the black and thriving.