PETALING JAYA: SME Corporation Malaysia, an agency under the Ministry of Entrepreneur and Cooperatives Development, and Funding Societies, the largest unified SME digital finance platform in Malaysia and Southeast Asia, have joined forces to launch the Bumiputera MSMEs Financing Initiative (BMFI). This initiative aims to provide financial support to bumiputera youth entrepreneurs who have participated in SME Corp’s Tunas Usahawan Belia Bumiputera (TUBE) programme.
The partnership between SME Corporation Malaysia and Funding Societies has allocated an initial fund of RM6 million for bumiputera youth entrepreneurs. This funding initiative is designed to enhance access to financing for micro, small, and medium enterprises, specifically those who have been part of the TUBE programme. Funding Societies will be the appointed financial partner, offering its digital financing solutions through the Tunas Financing-i programme to young entrepreneurs.
Under the TUBE programme, a total of 7,040 registered entrepreneurs and TUBE alumni will have the opportunity to apply for Tunas Financing-i. This programme provides financing of up to RM100,000 with a maximum tenure of 24 months at a competitive profit rate of only 2% per annum. One of the key benefits of this initiative is the minimal documentation and zero collateral requirement, making it easier for MSMEs to access the financing they need. Additionally, the online application process is streamlined, with approvals as fast as within two working days.
SME Corp CEO Rizal Nainy emphasized the importance of supporting bumiputera youth entrepreneurs through the BMFI. He highlighted the crucial role that these entrepreneurs play in the Madani Economy framework, which aims to achieve balanced, inclusive, and sustainable growth. By partnering with Funding Societies, SME Corp aims to provide innovative and quick short-term financing solutions for bumiputera MSMEs through a digital platform, in addition to existing government funding.
Access to financing has been a major challenge for MSMEs, including bumiputera entrepreneurs. The government is committed to supporting MSMEs in this area, as evidenced by the substantial amount allocated under the 2024 Madani Budget. A significant portion of the budget, amounting to RM32.15 billion (73.7%), has been earmarked for access to financing for MSMEs, out of a total allocation of RM43.6 billion.
Funding Societies Malaysia country head Chai Kien Poon expressed his enthusiasm for collaborating with SME Corp Malaysia to support the growth and resilience of bumiputera MSMEs. This partnership reflects a shared vision of empowering dynamic entrepreneurs with the financial assistance they need to thrive and contribute to the nation’s economy.
In conclusion, the Bumiputera MSMEs Financing Initiative (BMFI) represents a significant step towards providing much-needed financial support to bumiputera youth entrepreneurs in Malaysia. By leveraging digital financing solutions and strategic partnerships, SME Corp and Funding Societies are working together to address the financing needs of MSMEs and drive economic growth and inclusivity in the country.