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Malaysia is a country that encourages entrepreneurship, and the business ecosystem keeps getting better every year. Before you decide to start a business, you need to first strategically plan out all the finances like getting a business loan Malaysia.

It is this planning phase that separates the wheat from the chaff, and ultimately gives rise to experienced entrepreneurs. There is a lot of hard work, determination, and knowledge involved in planning out finances and how you are going to run your business.

Business loan Malaysia

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When you are finally ready to start your own business, you can use these steps to guide you. In this article we are first going to talk about the basic steps you need to follow to set up your business, after which we will be listing down some of the best places to find business loan Malaysia.

How To Plan Out Your Business Loan Malaysia

The following steps will guide you as you venture out to begin a new business in Malaysia. You can use it as a kind of tried and tested road map, and make changes to it as is suitable for the kind of business you are planning to set up.

Step 1: Sort Out Legal Matters

The first thing you should do for your new business before you apply for business loan Malaysia is to sort out all the legalities with respect to the industry you are venturing into. Think about what kind of business you want it to be – will it be a corporation, a sole proprietorship, a non profit, or a partnership venture?

Apart from what type of business you want to set up, try learning as much as you can about the country you are setting up your business in and also about the local markets. For instance, if you plan to set up a business in Malaysia, it is important to know all the legal matters involved in it and how you can proceed legally without any issues.

Sort out legal matters

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Figure out what kind of license or permits you would require for your business. Also familiarise yourself with all the rules and regulations pertaining to your business so that you do not get into trouble down the line. Also check out what kind of records you need to show for taxes.

Look also at the opportunities available and if possible, the market forecast of the region you are getting involved in so that you can get a picture of how profitable your venture would be.

Step 2: Create a Specific Business Plan

Put down all your thoughts and ideas on paper so that you have something to refer to as you start setting up your business. Also make a note of your motivation and the goals and purpose for your business. 

There are many times you will start to question yourself as a new entrepreneur. These notes and information will help you stay on track and keep you motivated during those tough times.

Create a specific business plan

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Also create a strategic plan and put it down on paper. What market are you targeting? Where are you planning to get a business loan Malaysia?

Planning is probably the most crucial element of any type of business, so give it its due importance.

Step 3: Getting Finances Or Funds For Your Business (Business Loan Malaysia)

This is one of the most crucial aspects for your business. After you have created a clear-cut plan for your business, figure out where you are going to obtain funds for your business. Are you going to get a business loan Malaysia? If so, what are the organizations you can approach to get that loan?

One of the best ways to get funding for your new startup is to check out what kind of financial incentives your government is offering.

Getting finances or funds for your business

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The Malaysian government has various financial schemes in place for budding entrepreneurs to help support the growth of entrepreneurship in Malaysia

We will talk about all the government schemes and grants in Malaysia that will help you out as you set up a new business.

Here is a list of many government funded grants that you could look to as you start your new venture in Malaysia. We hope you find it useful as you begin your new journey as an entrepreneur.

15 Malaysian Government Funding Schemes You Can Apply To To Get Your Business Funded

1. TEKUN Financing

The TEKUN Financing scheme is run by TEKUN Nasional (TEKN), and only Bumiputeras are eligible to apply. There are two main categories under the TEKUN financing scheme – the Small Loan Scheme (SPK), and the Medium Loan Scheme (SPS). The SPK scheme allows small businesses to apply for a loan amount of between RM 10K to 50K whereas the SPS scheme grants loans within the range of RM 50K to 100K.

2. Tabung Pembangunan Pengangkutan Awam (TPPA)

The Tambung Pembangunan Pengangkutan Awam scheme is implemented by SME Bank Malaysia. This scheme is open to the public transportation industry and individuals and companies are eligible to apply. The range of business loan Malaysia for this scheme is between RM 30k to 5 million.  

3. Soft Loan Schemes for Services Sector (SLSSS)

The Soft Loan Schemes for Service Sectors, like the name suggests, is for Malaysian businesses in the service sector.  It is implemented by the Malaysian Industrial Development Finance Berhad (MIDF). SMEs and other companies can get bank loan Malaysia upto RM 5 million at a rate of 4-5%. 

4. Rural Economy Funding Scheme (SPED)

The main goal of the Rural Economy Funding Scheme is to get more people from rural sectors of Malaysia into business by increasing the number of rural Bumiputera entrepreneurs in Malaysia. The scheme offers a business loan Malaysia of between RM 20k to 50k to businesses that are completely owned by Bumiputera and is based on the Shariah concept.

5. Tabung Usahawan Siswazah (TUS)

The Tabung Usahawan Siswazah is implemented by SME Bank and provides financial assistance to Malaysian finance graduates who have at least a Diploma from a Malaysian university. They give a maximum loan amount of RM 500k at a rate of 4% per annum.

6. Tabung Pembangunan Usahaniaga Peladang (TPUP)

The Tabung Pembangunan Usahaniaga Peladang scheme is for Malaysian farmers. It helps them turn their livelihood into a profitable business. The scheme is implemented by Lembaga Pertubuhan Peladang (LPP).

7. Bumiputera Enterprise Enhancement Programme (BEEP)

The Bumiputera Enterprise Enhancement Programme (BEEP) scheme is implemented by SME Bank and provides financial assistance as well as training to Bumiputera businesses. It is basically an entrepreneurial development programme, not just a funding scheme. It aims to bring more Bumiputera SME businesses in the country.

8. Services, Manufacturing, & Engineering Scheme (SME Scheme)

The SME scheme is for businesses in the services, manufacturing, and engineering industries. It is implemented by Perbadanan Usahawan Nasional Berhad (PUNB) and provides loans within the range of RM 50k to 5 million. However, this scheme is only offered to those companies who are able to contribute at least 20% of the total cost.

9. SME Emergency Fund (SMEEF)

The SME Emergency Fund is a program designed to help businesses rebuild or renovate their buildings when natural disasters strike. SME Corporation Malaysia provides these loans or grants till a maximum amount of RM 100k.

10. Soft Loan for SMEs (SLSME)

The Soft Loan for SMEs is implemented by Malaysian Industrial Development Finance Berhad (MIDF). They provide financial assistance up to a maximum of RM 5 million at 4% per annum.

11. Business Startup Fund

The Business Startup Fund is a supportive innovation scheme that provides loans to tech startups. It is run by SME Corporation Malaysia and offers a maximum amount of RM 5 million at 3.5% interest per annum.

12. Skim Kredit Pengeluaran Makanan

The Skim Kredit Pengeluaran Makanan scheme is run by Agro Bank and is mostly for food industry startups. The scheme offers food production companies that are moderated by Skim Kredit Pengeluaran Makanan a maximum of RM 500K at an interest rate of 3.7% per annum.

13. Micro Enterprise Fund (MEF)

The Micro Enterprise Fund is run by Bank Rakyat. It offers secure funding to home based businesses in Malaysia in a range of RM 1k to 50k.

14. Prosper Usahawan Muda (PUMA)

The Prosper Usahawan Muda scheme helps young Bumiputera entrepreneurs with a maximum finding of RM 100K for ten years. The applicant should be between 18 to 35 years of age and the loan is based on the Shariah concept.

15. Young Entrepreneur Fund

The Young Entrepreneur Fund is for entrepreneurs in the service sector. It offers young entrepreneurs between the ages of 18 to 30 a loan in the range of RM 20k to 200k at a rate of 5% per annum.