SME Corporation Malaysia (SME Corp) and Funding Societies Malaysia have allocated an initial fund of RM6 million to young Bumiputera entrepreneurs under the recently launched Bumiputera Micro Financing Initiative (BMFI) program. This program aims to enhance access to financing for Micro, Small, and Medium Enterprises (MSMEs) under the Bumiputera Youth Entrepreneurship Program (TUBE).
Rizal Nainy, the Chief Executive Officer of SME Corp, stated that the special allocation takes into account the interests of young Bumiputera entrepreneurs in achieving the goals of the Madani Economy for balanced, inclusive, and sustainable growth. He emphasized that the collaboration with financial partners involved will expand their digital financing solutions to young entrepreneurs through Tunas-i Financing.
„We hope to leverage this collaboration to provide innovative and fast short-term financing solutions through a digital platform as an addition to the existing government funds. Therefore, we expect more Bumiputera MSMEs to take advantage of this initiative to meet their financing needs, especially in working capital. Access to financing remains a key issue and challenge for the growth of MSMEs, including Bumiputera entrepreneurs,“ he said in a statement on Tuesday.
Rizal also mentioned that the government remains committed to supporting MSMEs in this aspect, as evidenced by the significant allocation under the 2024 Madani Budget. He added that access to financing continues to receive the largest allocation of RM32.15 billion, equivalent to 73.7% of the total funds for MSMEs amounting to RM43.6 billion.
Meanwhile, Chai Kien Poon, the Country Head of Funding Societies Malaysia, described the collaboration between his company and SME Corp as a historic moment in fostering the growth and resilience of Bumiputera MSMEs. He stated that this partnership demonstrates the shared vision of both parties in equipping dynamic entrepreneurs with the necessary financial assistance to thrive and contribute to the national economy.
Microenterprises and young entrepreneurs play a crucial role in realizing a more inclusive, sustainable, and balanced growth vision. However, they face continuous challenges in accessing financing, often due to a lack of collateral or credit history.
„As a leading digital financing platform in Malaysia and Southeast Asia, we are delighted to collaborate with SME Corp in empowering young entrepreneurs. This also marks a milestone in our existing partnership with government agencies, and we are committed to diversifying collaborations in the future to strengthen the MSME ecosystem,“ explained Kien Poon.
The collaboration between SME Corp and Funding Societies Malaysia signifies a significant step towards supporting the growth and development of Bumiputera MSMEs, ultimately contributing to the overall economic prosperity of Malaysia. Through innovative financing solutions and strategic partnerships, young entrepreneurs are provided with the necessary resources to thrive and succeed in today’s competitive business landscape.