SME Corp. Malaysia has teamed up with microLEAP to provide MYR 35 million ($8.29 million) in grant-convertible financing for small and medium-sized businesses (SMEs) in Malaysia.
The duo said in a statement on Monday that the Business Accelerator Program (BAP) Alternative Financing Program 2025 (Program Pembiayaan Alternatif BAP 2025) will offer eligible SMEs Shariah-compliant financing of up to MYR 400,000 ($94,764), at a competitive 3.5 percent profit rate per annum, with the possibility of 40 percent of the financing to be converted into a grant.
MicroLEAP, a Shariah-compliant peer-to-peer (P2P) financing platform regulated by the Securities Commission Malaysia (SC), will act as the financing intermediary for this program.
With this new funding from SME Corp. Malaysia, the total amount provided through the partnership with microLEAP since 2021 has reached MYR 70 million ($16.58 million).
The collaboration aims to support SME growth, increase financial inclusion, and offer alternative financing options, especially for businesses that may not easily get loans from traditional banks.
“SME Corp. Malaysia is proud to collaborate with innovative financing platforms like microLEAP in delivering solutions that go beyond traditional lending,
“This program reflects our commitment to rethinking SME support, not just through financing, but by embedding incentives that reward financial discipline and business growth,” said Rizal bin Dato’ Nainy, Chief Executive Officer of SME Corp. Malaysia.
“By enabling up to 40 percent grant conversion, we are not only reducing the burden of repayment but actively investing in the future of high-potential Malaysian SMEs that are ready to be scale-up, in line with our target to upscale small enterprises to medium-sized enterprises from 1.6 percent currently to 5 percent by 2030,” he added.
According to the statement, the program offers assistance for both working capital and business improvement purposes, namely machinery and equipment purchases, environmental, social, and governance (ESG) adoption, product certification, advertising and promotion and information and communication technologies (ICT) adoption.
Only SMEs with a good repayment history can apply to convert up to 40% of their financing into a grant, subject to approval from SME Corp. Malaysia.
SMEs make up over 96% of all businesses in Malaysia, but many still struggle to access traditional financial services.
This new program by SME Corp. Malaysia and microLEAP aims to bridge that gap, providing not just funding but also confidence to these businesses.
“This program is a product of listening to small business owners, to market challenges, and to policy direction,
“We believe financing should not just be accessible and affordable, it should also reward good financial discipline,” said Danny Nasaifuddin Mudzaffar, Founder and Chief Executive Officer of microLEAP.
“Through our collaboration with SME Corp. Malaysia, we’re proud to offer a financing product that does just that,
“We’ve always believed that SMEs should not need three years of audited accounts or collateral to access financing. If they’re generating revenue and growing, and they can afford the financing, we will be there to support them,” he added.
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