A new financing avenue is opening up for Malaysian small and medium enterprises (SMEs), with SME Corp. Malaysia rolling out the Business Accelerator Programme (BAP) Alternative Financing Programme 2025. The initiative, worth RM35 million, offers Shariah-compliant financing of up to RM400,000 per SME at a competitive profit rate of 3.5% per annum.
In a move designed to go beyond traditional lending, the programme also includes an incentive where up to 40% of the financing may be converted into a grant, provided recipients maintain timely repayment records.
SME Corp. has appointed microLEAP, a Securities Commission Malaysia-regulated Shariah-compliant peer-to-peer (P2P) financing platform, as the financing intermediary. With this fresh injection, SME Corp.’s collaboration with microLEAP since 2021 now totals RM70 million.
“SME Corp. Malaysia is proud to collaborate with innovative financing platforms like microLEAP in delivering solutions that go beyond traditional lending,” said Rizal bin Dato’ Nainy, Chief Executive Officer of SME Corp. Malaysia.
“By enabling up to 40% 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 scale up. This is in line with our target to grow small enterprises into medium-sized enterprises from the current 1.6% to 5% by 2030.”
Echoing the sentiment, YM Tunku Danny Nasaifuddin Mudzaffar, Founder and CEO of microLEAP, said the programme reflects a financing model that rewards responsible SMEs.
“We’ve always believed SMEs shouldn’t need three years of audited accounts or collateral to access financing. If they’re generating revenue, growing, and can afford the financing, we will be there to support them. Through this collaboration with SME Corp., we are proud to deliver financing that is not only accessible and affordable but also rewards good financial discipline,” he said.
The scheme covers both working capital and business improvement needs, including machinery and equipment purchases, ESG adoption, product certification, advertising and promotion, and ICT adoption.
Only SMEs with strong repayment track records will qualify for the grant conversion benefit, subject to SME Corp.’s approval.
SMEs form over 96% of businesses in Malaysia, yet many remain underserved by the traditional banking system. By bridging this financing gap, SME Corp. and microLEAP aim to strengthen financial inclusion while boosting the resilience of local enterprises.