Malaysia has always been a great place to do business however, starting a business has always been risky. This is why the Malaysian government has come up with several business financing methods to help businesses. Post the budget 2022, the government has introduced several business loans available for business owners no matter which stage your business is in. Today, we will focus on the best business loan for business owners in Malaysia.
6 Business Loans for Malaysian Entrepreneurs
The Malaysia startup capital is a new RM1 billion initiative by the government to support and help business expansion for startups in Malaysia. MYSTARTUP programs provide gradual capacity development to startups, such as idea generation programs and startup potential search and “problem/solution fit” facilitation.
The objective of this initiative is to create access to comprehensive information to make it easier for startups to build a roadmap for their business venture.
Having a business loan calculator helps you decide your business plan as well!
Ease of Micro Enterprises (MEF)
The Ministry of Entrepreneur Development (MED) has provided a new loan facility for micro-enterprises with an allocation of RM50,000 under the 2022 Budget. The government also provides a 4.00% interest per annum and no profit charges.
The financing period could go up to 5.5 years, including the first 6 months of the moratorium on monthly instalment payments.
Low Carbon Transition Facility (LCTF)
The Malaysia Green Technology Corporation (MaGIC) has introduced the Low Carbon Transition Facility (LCTF). This is to support Malaysian small and medium enterprises (SMEs) to adopt low carbon technologies with an allocation of RM100 million.
LCTF offers working capital financing of up to RM5 million with a maximum tenure of 5 years and an attractive interest rate of 4.00% per annum.
Deciding what your business needs can help deciding the best business loans.
eUsahawan Financing Scheme
The eUsahawan program was introduced by the Ministry of Entrepreneur Development (MED) in collaboration with Malaysia Digital Economy Corporation (MDEC). It aims to nurture and develop tech-savvy youths into entrepreneurs via a three-pronged approach, which are education, incubation, as well as financing.
One of their initiatives is the eUsahawan Financing Scheme where selected youth entrepreneurs will be able to apply for a zero-interest loan of up to RM50,000. The loan will be payable within two years and is open to all Malaysia citizens aged 18 to 35 years old.
The Malaysian Agricultural Research and Development Institute (MARDI) has introduced the Agropreneur Fund to provide financing for those in the agriculture sector who are keen on venturing into agro-based businesses with an allocation of RM100 million.
This fund offers financing of up to RM5 million with a maximum tenure of 10 years and an interest rate of 4.00% per annum.
Malaysia Co-Investment Fund 2.0 (MCF2.0)
The Malaysia Co-Investment Fund 2.0 or better known as MCF2.0 is one of the latest initiatives by the Malaysian government to support startups and small businesses in Malaysia. It was first announced in 2019 and is now open for application starting February 2021.
This initiative provides early-stage startup companies with an equity financing of up to RM5 million. The fund will be co-invested by Malaysia Venture Capital Management Berhad (Mavcap) and the participating Fund Managers.
These are just some of the many business loans available for entrepreneurs in Malaysia. So if you are looking to start a business or currently running one, remember to check with the relevant agencies on the latest updates and see which funding suits your business best! financial institutions