The guide to P2P lending for SMEs in Malaysia

As the key driver of economic growth and employment, SMEs contributed more than one third to the GDP and accounted for 66% employment in Malaysia in 2018. Despite the contribution of SMEs towards the country’s economy, 19% of local SMEs have struggled to access funding from traditional financial institutions, as reported by a survey on SME financing conducted by Bank Negara. Over the years, SMEs have turned towards alternative funding channels in order to overcome the financing gap. In 2016, Malaysia became the first country to regulate P2P lending platforms in Southeast Asia to address this issue faced by many SMEs.


What is P2P lending?

Instead of applying for loans from banks, Peer-to-Peer (P2P) lending enables businesses to obtain loans directly from lenders through an online platform in the form of crowdfunding. Each P2P lending platform may offer different types of financing products which businesses can choose from according to their needs such as invoice financing, working capital financing, general business financing, etc. with its own features and conditions.


Eligibility criteria to raise funds on a P2P lending platform

To be qualified to raise funds on P2P lending platforms, businesses need to fulfil the minimum criteria set out by the Securities Commission (SC) as follows:


Besides that, P2P lending platforms may require businesses to meet additional criteria such as:


How does P2P lending platform work?

Each P2P lending platform may have different registration and application flows. This is a general overview of how they work.


1. Sign up on the P2P lending platform

You are required to provide business information such as nature of your business, contact details, paid-up capital, directors and shareholders information, etc. besides uploading a copy of your IC / passport and official business documents.


2. Decide on the financing product that suits your business

As each business can only host 1 funding at a time on 1 P2P lending platform, it is important to access the financing product that suits your business needs according to the funding purposes, funding amount, repayment period, etc. You will state the funding amount that you want to raise for your business at this step.


3. Wait for verification and approval by the P2P lending platform

A background check will be performed by the P2P lending platform on your business to verify your identity, access the financial viability of the business and go through a credit check. It may take a few days to a few weeks.


4. Accept the offer

The P2P lending platform will come out with terms and conditions together with the interest rate of your funding. Once you have accepted the offer, your funding request will be published on the P2P lending platform and investors can choose whether or not to fund your business.


5. Receive funds

The fund will be credited to your bank account once it has reached the target amount set earlier during the application. Bear in mind that if you managed to raise more than the target amount, you can only get the target amount and the remaining amount will be refunded to investors. However, businesses will need to bear the stamping and origination fees for each successful funding.


Advantages of P2P lending for SMEs

1. Lower interest rate

Compared to banks, P2P lending platforms often offer a lower interest rate due to lower origination fees.


2. Convenient application process

While most of the banks require you to physically visit their branch for a loan application, you can easily apply for P2P funding online. Without the multi-layered bureaucratic process practised in conventional banks, the approval process of P2P lending platforms is quicker as well.


3. High accessibility

Businesses that lack adequate track records or with poor credit rating often face difficulties when applying for a bank loan. P2P lending platforms make funding possible for businesses even without collateral.


4. No prepayment penalty

Traditional banks often impose a penalty if you choose to pay your bank loan off early. On the contrary, businesses who have obtained a loan on P2P lending platforms are encouraged to make early repayment if possible; there is no prepayment penalty on P2P lending platforms.


5. Flexible

As banks have their rigid business models to follow, it can be difficult for businesses to get a loan below minimum loan limit. Through P2P lending platforms, businesses can get their target amount approved as smaller funding needs can be met within short period of time from multiple lenders.


Disadvantages of P2P lending for SMEs

1. Possible unsuccessful funding

Even if the application on a P2P lending platform gets approved, it does not guarantee the success of the funding. At least 80% of the target amount needs to be met within the funding period or else it is considered a failure and has to be done all over again.


2. Privacy exposure

To facilitate lenders in making funding decisions, most P2P lending platforms require public disclosure of your financial history, business plan and other relevant information. Hence, pitching to many lenders means losing some anonymity of the business.


P2P lending platforms in Malaysia

All P2P lending platforms operating in Malaysia should be approved by SC as registered recognised market operators. As of May 2020, there are 11 approved P2P lending platforms. The market share data in this article was taken from Malaysia’s P2P lending platform performance review done by


1. Funding Societies

Date approved: November 2016

Operator: Modalku Ventures Sdn Bhd

Funding Societies is a Southeast Asia based digital financing platform, operating in Singapore, Indonesia and Malaysia. As of January 2018, Funding Societies is the biggest market player in Malaysia, having 51% market share in the P2P lending industry.


2. B2B Finpal

Date approved: November 2016

Operator: B2B Finpal Sdn Bhd

B2B Finpal is a Malaysia P2P lending platform with in-house risk management technology and partnership with trusted Credit Bureau. As of January 2018, it is the second largest player in the local P2P lending industry, holding approximately 25% market share.


3. Fundaztic

Date approved: November 2016

Operator: Peoplender Sdn Bhd

Fundaztic has a strong management team that consists of industry veterans and senior level ex-bankers, bringing a 50-year combined expertise in finance, legal and technology. As of January 2018, Fundaztic owned 13% of the market, securing third place in the local P2P lending industry.


4. QuicKash

Date approved: November 2016 **

Operator: QuicKash Malaysia Sdn Bhd

QuicKash is a unit under the ManagePay Systems Berhad, an e-payment solution provider, leveraging on the MPAY’s fintech technology. As of January 2018, QuicKash is the fourth biggest market player in the P2P lending industry of Malaysia with 8% market share.


5. AlixCo

Date approved: November 2016

Operator: FBM Crowdtech Sdn Bhd

AlixCo is operated by FBM Crowdtech, the only Registered Market Operator in Malaysia that operates both P2P lending and equity crowdfunding platforms. AlixCo holds 2% of the Malaysian market share in the P2P lending industry as of January 2018.


6. Nusa Kapital

Date approved: November 2016 **

Operator: Ethis Kapital Sdn Bhd

Nusa Kapital is the world’s first regulated Shariah-compliant P2P lending platform based in Malaysia advised by International Shariah Research Academy for Islamic Finance. As of January 2018, it holds 1% market share of the P2P lending industry of the country.


7. CapBay

Date approved: May 2019

Operator: Bay Smart Capital Ventures Sdn Bhd

CapBay is founded by Ang Xin Xian, Edwind Tan and Darrel Ang, who are all alumni of Oxford University, as well as Dion Tan, a London School of Economics graduate. As an award-winning platform, CapBay offers both P2P lending and supply chain finance technology solutions.


8. CapSphere

Date approved: May 2019

Operator: Capsphere Services Sdn Bhd

CapSphere is the first asset-based P2P lending platform in Malaysia. This asset-based financing model enables the financing cost to be more accessible to borrowers while provides investors with greater assurance and security on their investment.


9. MicroLEAP

Date approved: May 2019

Operator: MicroLEAP PLT

MicroLEAP is a FinTech platform that focuses on the microfinance sector. From the platform, borrowers are able to raise as little as RM1,000, via either Shariah-compliant or Conventional financing.


10. Crowd Sense

Date approved: May 2019

Operator: Crowd Sense Sdn Bhd

As of May 2020, Crowd Sense has yet to go live.


11. Money Save

Date approved: May 2019

Operator: Money Save (M) Sdn Bhd

As of May 2020, Money Save has yet to go live.


How to choose a suitable P2P lending platform?

Even though P2P lending platforms work in a similar way in general, just like banks, there are several things to consider when it comes to choosing a suitable one for your business.


1. Types of financing product offered

Whether it is invoicing financing or working capital financing, terms and conditions applied may vary from one P2P lending platform to another. It is important to understand the criteria of each product before deciding on one that suits your business needs.


2. Financing amount

Even though there is no target amount limit imposed by the SC, each P2P lending platform may have a minimum and maximum amount of funds that can be raised on their platforms.


3. Costs of finance

Other than the interest payments, businesses will be charged additional fees for successful funding on P2P lending platforms, such as processing fee, platform fee, stamping fee, guarantee fee, etc.


4. Published statistics

While this information may not be available for all market players, certain P2P lending platforms do publish updated statistics on their funding success rate, fulfilment days, and total funding crowdfunded. These might be a good reference point to give you a rough idea about the success rate of your funding.


Alternative funding like P2P lending has become a necessary part of the financial ecosystem in Malaysia with a funding approval rate of over 70% for local SMEs. As of March 2020, a total of RM738.99 million has been raised for 2,100 businesses since 2016 when P2P lending platforms were first started operating in Malaysia. Hence, it is good to take P2P lending into consideration when it comes to raising funds for your business.

10 questions about SST in Malaysia answered for SMEs

What is SST?

Implemented since September 2018, Sales and Service Tax (SST) has replaced Goods and Services Tax (GST) in Malaysia. The SST consists of 2 elements:

What are taxable goods and services?

Bear in mind that the following listed taxable goods and services are not applicable for goods and services providers under the special areas in Malaysia (including Langkawi Island, Tioman Island, and Labuan Federal Territory).

Taxable goods

Taxable goods refer to all goods manufactured in or imported into Malaysia as stated in the Sales Tax (Goods Exempted from Tax) Order 2018, Sales Tax (Exemption from Registration) Order 2018, and Sales Tax (Persons Exempted from Payment of Tax) Order 2018. The complete list can be found on the SST Orders page of the MySST website. However, there are some goods exempted from Sales Tax, such as:

Taxable services

Taxable services are any services listed in the First Schedule of the Service Tax Regulations 2018, which are divided into Groups A to I. Digital service tax that is charged upon foreign digital service providers that came into effect on the 1st of January 2020 falls under Group I.

There are some services exempted from Service Tax as well. Some services under Groups G and I are exempted for businesses in which both service providers and service users are SST registered and fall under the same Group. For example, a law firm that is SST registered receives accounting services from an accounting firm which is also SST registered. The accounting services received by the law firm is exempted from the SST.

Who is a taxable person?

A taxable person is a manufacturer or a service provider who is registered or liable to register for SST. However, any businesses that are not liable to register or are exempted from the SST registration may apply voluntarily to the Director General (DG) of Customs to register for SST.

Is my business liable to register for SST?

To be liable to register for SST, there are a few criteria to be met by businesses:

Sales tax

Service tax

Taxable service providerThreshold
Operators of restaurants, bars, snack-bars, canteen, coffee house or any place providing food and drinks whether eat-in or take-awayRM1,500,000
Persons who are regulated by Bank Negara Malaysia and provide credit card or charge card servicesNo threshold
Approved customs agentsNo threshold

What are the SST rates?

SST is an ad-valorem tax that is calculated through percentage, in proportion to the estimated value of the sales or services.

Sales Tax

Service Tax

How to register for SST?

If your business is liable to register for SST, you may complete the Sales Tax registration or Service Tax registration respectively online on the MySST website. The due date for registration will be the last day of the month following the month in which the total sales value has exceeded or is expected to exceed the threshold.

This is an example:

If your business is exempted from Sales Tax under Sales Tax (Persons Exempted from Payment of Tax) Order 2018, an application for exemption should be made through the MySST website as well.

When to file the SST return and make payment?

The taxable period of SST is a period of 2 calendar months. Hence, SST returns must be filed every 2 months even if there is no tax to be paid. The SST payment should be done within 30 days from the end of the taxable period.

The timing to account for the respective transactions is different for Sales Tax and Services Tax:

Do note that the length of your first taxable period is determined based on whether your financial year-end month falls on an odd or even month.

How to file the SST return?

There are 2 ways to file the SST return:

How to pay SST?

Similar to the filing of SST return, there are 2 ways to make the SST payment:

What are the possible SST penalties?

Penalties will be imposed for the following offences:

Failure or late to register for SST

The business will be expected to pay the SST out of their own pocket for SST on time as the SST can no longer be collected from the customers.

Failure to file SST returns

Upon conviction of not filing SST returns, the taxable person can be fined a maximum of RM50,000, imprisoned for a maximum of 3 years, or both.

Failure to make SST payment

Upon conviction of not making SST payment, the taxable person can be fined for a maximum of RM50,000, imprisoned for a maximum of 3 years, or both. Do note that failure to make SST payment and failure to make SST returns are 2 separate and distinct offences.

Late payment penalty

Upon expiration of 1 month from the taxable period, 10% of charges are imposed on any outstanding SST for the first 30 days. Thereafter, for the second 30-day period, an additional 15% of charges are imposed on any outstanding SST and for the third 30-day period, an additional 15% of charges.

Evasion of tax


Special thanks to Wei Khee who helps out with the content of this article.

6 important company taxes in Malaysia (with tax rates of 2021)

Running your business as a separate legal entity through a private limited company provides you with benefits such as personal financial security and access to funding, but it also requires compliance with laws and regulations in Malaysia. One of the most concerning compliances that many entrepreneurs face is taxes as required by the Inland Revenue Board (LHDN) and the Royal Malaysian Customs Department (RMCD). Understanding each company tax requirement can put you at ease on this matter so that you put more focus on growing your business.

1. Corporate tax

Corporate tax is governed under the Income Tax Act 1967, which applies to all companies registered in Malaysia for chargeable income derived from Malaysia including business profits, dividends, interests, rents, royalties, premiums and other income.

Tax rates of corporate tax (as of Year of Assessment 2021)

Paid-up capital of RM2.5 million or less Rate
On the first RM 600,000 chargeable income 17%
On subsequent chargeable income 24%
Paid-up capital of more than RM2.5 million Rate
Flat rate 24%

When to pay corporate tax?

Newly registered companies should file the estimation of tax payable within 3 months of operation and make monthly instalments starting from the 6th month of the assessment year by the 15th of each month. After the assessment year has ended, a company is required to file its tax to the LHDN through the e-filling portal within 7 months. If the actual tax liability is greater than the taxes paid based on estimation, the balance of tax payable has to be paid. On the other hand, you can apply for a refund if the actual tax liability is lower than the taxes paid.

2. Withholding tax

Withholding tax is applicable only if your company is paying a non-resident individual or company (known as the payee) for their services where a certain percentage of the payment is deducted and paid as their income taxes to the LHDN. Each payment type has a different tax rate according to Section 107A and Section 109 of the Income Tax Act 1967. Under the Double Taxation Agreements (DTA), you may apply for a refund of overpaid withholding tax.

Tax rates of withholding tax

Payment TypeRate
Contract payment for services done in Malaysia10% , 3%
Interest paid by approved financial institutions5%
Special classes of income: Technical fees, payment for services, or payment for use of moveable property10%
Income of non-resident public entertainers15%
Real Estate Investment Trust10%, 25%
Family Fund / Takaful Family Fund / Dana Am8% , 25%
Payment Type Rate
Contract payment for services done in Malaysia 10% , 3%
Interest 15%
Interest paid by approved financial institutions 5%
Royalty 10%
Special classes of income: Technical fees, payment for services, or payment for use of moveable property 10%
Income of non-resident public entertainers 15%
Real Estate Investment Trust 10% , 25%
Family Fund / Takaful Family Fund / Dana Am 8% , 25%
Others 10%

When should the tax be paid?

The withholding tax should be paid within 1 month from the date of payment to the non-resident payee.

3. Payroll tax

As part of the employer's responsibility, a company with employees will need to retain a percentage of the employees' remuneration including salary, commission, bonus, incentives, etc. and pay as Monthly Tax Deduction (MTD) to LHDN on behalf of employees who are taxable. This deduction, along with EPF, SOCSO, and EIS, will be stated in the employees' payslip as PCB (potongan cukai bulanan). The payroll tax can be deducted if the employee is paying Zakat, a payment made under the Islamic law for charitable and religious purposes.

Tax rate of payroll tax

The calculation of PCB can be done based on the MTD schedule or through the Computerised Calculation Method on the e-CP39 portal. The amount of PCB required from each employee varies according to the category they fall in and also the amount of remuneration they receive each month.

When to pay payroll tax?

PCB should be paid to LHDN by the 15th of each month, for the remuneration issued for the previous month.

4. Stamp duty


Your company is required to pay for Stamp Duty when instruments are involved, which are written legal, commercial, and financial documents. Examples of taxable instruments are partnership agreement and mortgage agreement. There are two types of Stamp Duty, one with a fixed rate regardless of the amount stated in the instrument, the other which varies according to the nature of the instrument and the value stipulated. Besides some situations where the Stamp Duty is exempted, you may apply for Stamp Duty relief under certain cases.

Tax rate of stamp duty

All information regarding taxable instruments and exemptions are stated in the Stamp Act 1949. Instruments that are chargeable for Stamp Duty are listed in the First Schedule together with the rates while the persons liable to pay the Stamp Duty are listed in the Third Schedule.

When to pay stamp duty?

The instrument should be stamped within 30 days of the execution of the instrument. The following are ways to pay stamp duty:

5. Sales & Service Tax (SST)

Sales tax is a single-stage tax charged on taxable goods manufactured in or imported into Malaysia by a taxable person and is due when the goods are sold, disposed of, or first used with a total sale value of more than RM500,000 in 12 months. There are exemptions for certain goods manufactured or imported. Effective from 23rd March 2020, the following items will be exempted from import duty and sales tax until a later date to be announced.

Not to be confused with service chargeservice tax is charged on taxable services in Malaysia such as accommodation, gaming, telecommunication services, etc. provided by a taxable person with a total value of more than RM500,000 in 12 months. For the F&B industry, however, the threshold is a total value of more than RM1,500,000 in 12 months. Credit card services have no threshold and a different rate.

There are several laws that govern SST. You are required to register your company for SST if the requirements are met.

Tax rates of SST

Type Rate
Sales Tax 5% or 10% or on specific rate
Service Tax 6%

* SST does not apply to Special Area.

When should the tax be paid?

SST should be paid bi-monthly, except for the 1st tax period after your registration with RMCD.

6. Real property gains tax (RPGT)

Real property gains tax is applicable only if your company disposes of chargeable assets such as houses, commercial buildings, farms, and vacant lands, and also shares in real property companies, gaining profit from the disposal. The calculation of chargeable gain is the disposal price minus by acquisition price. Governed under the Real Property Gains Tax 1976, the tax rates differ according to the holding period of the chargeable assets.

Tax Rates of RPGT

Disposal Period (after the year of acquisition) Rate
Within 3 years 30%
The 4th year 20%
The 5th year 15%
The 6th year and above 10%

When to pay RPGT?

You and the acquirer of the chargeable assets are required to file the tax within 60 days from the date of disposal. The acquirer will pay part of the purchase consideration which will be deducted from the RPGT payable. After filling the tax, an assessment notice will be issued for taxable cases; for non-taxable cases, a certificate of non-chargeability will be issued instead. You are then required to pay the RPGT payable within 30 days from the date the assessment notice is issued.

Besides the taxes stated above, there are customs dutyexcise duty, property taxes (cukai tanah and cukai pintu) and other taxes which might be applicable to your company according to industry and nature of business. Besides, please bear in mind that Labuan has a different tax regulation than other States in Malaysia. Fulfilling this obligation as a company should not be an obstacle that hinders your business growth or operations. Hence, understanding the taxes at the early stage of your business ensures full compliance with the tax law and regulations.

4 ways Budget 2021 might benefit SMEs in Malaysia

With the theme ‘Stand United, We Shall Prevail’, Budget 2021 was planned based on 3 goals — Rakyat’s well-being, business continuity, and economic resilience, in line with the Revitalise stage of the 6R economic recovery plan. Unlike previous Budgets, the preparation of Budget 2021 involves more than 38 dialogues across 40 businesses and industries, and budget consultations covering all 14 states. Despite this unprecedented pandemic crisis, our country’s economy is expected to recover and expand at a rate of 6.5 to 7.5%. These are the 4 ways Budget 2021 might benefit your SMEs' businesses.

Empower entrepreneurs and businesses

Several initiatives have been planned to assist specific groups of entrepreneurs and SMEs in Malaysia.

For Bumiputera entrepreneurs

A total of RM4.6 billion will be allocated to boost and empower Bumiputera entrepreneurs through the following programmes:

For women entrepreneurs

To value the contribution of women and to enhance their role in nation-building, the government has come out with several initiatives.

For communities

TEKUN will provide RM20 million for the Skim Pembangunan Usahawan MasyarakatIndia (SPUMI) and RM5 million for the entrepreneurship development of other minority communities.

For social enterprises

Malaysian Global Innovation and Creativity Centre (MaGIC) and selected agencies have been allocated RM20 million to conduct social enterprise development programmes. Besides that, social enterprises can supply goods and services valued up to RM20 million per year to the government by becoming suppliers with the Government Impact e-Procurement Program Certificate.

For digitalisation and automation in businesses

Drive investments to key sectors

The government will facilitate the strengthening and growth of key sectors through several initiatives.

For high value-added technology and innovative companies

2 funds will be provided to support high technology and innovative companies:

For high-value service activities

For locally manufactured products

For medical and pharmaceutical products

For the agriculture sector and food industry

For the commodity sector

For the tourism sector

For other sectors

A total of RM500 million from these schemes will be designated for Bumiputera entrepreneurs to increase their involvement in the key sectors.

Improve access to financing

This is to help SMEs and micro SME entrepreneurs who have difficulty obtaining funds.

Micro credit financing

Targeted Assistance and Rehabilitation facility

The BNM will assist SMEs affected by the pandemic through the Targeted Assistance and Rehabilitation facility worth RM2 billion ringgit through loans from banking institutions.

Loan guarantees

Alternative financing

Ease the burden of loan repayment

The Targeted Loan Repayment Assistance (TRA), which started in October 2020, will be will be enhanced for micro-enterprises with loans of up to RM150,000. Borrowers have 2 options:

You can contact your banks to choose between the options and complete the documentation for this enhanced TRA initiative.

Encourage hiring and employment

Initiatives designed to generate new jobs and retain existing employees.

Hire through PenjanaKerjaya

A total of RM2,000,000 has been allocated for several enhancement of the existing hiring incentive and training programme – PenjanaKerjaya run by SOCSO that was made to encourage employers to hire employees for their businesses. This incentive will be given for a period of 6 months.

Employ youth for apprentices

Provide employment opportunities for ex-convicts and former drug addicts

Further tax deduction on remuneration given to employers who employ ex-convicts, parolees, supervised persons and ex-drug dependants has been extended until the year of assessment 2025.

Extend the Wage Subsidy Programme for targeted sectors

The existing Wage Subsidy Programme by SOCSO, which was supposed to end in December 2020, has been extended for another 3 months, specifically for the tourism and retail sector. A total of RM1,500,000 has been allocated to this programme to help about 70,000 employers. Each employee earning RM4,000 and below will get RM600 a month. The limit of 200 employees per company has been increased to 500 employees.

Although our economy has taken a hit due to the pandemic, many opportunities have arisen in the midst of chaos, especially in the fields of public health, e-commerce, logistics, and education technology. Now is the perfect time for businesses to capitalise on the opportunities provided in light of Budget 2021. Businesses should leverage on present opportunities and pivot accordingly to adapt to the new norm.

14 Economic Stimulus Packages for Malaysian SMEs (updated)

In order to combat the economic impact of the COVID-19 pandemic towards the people, Malaysian prime minister, Tan Sri Muhyiddin Yassin, has introduced the PRIHATIN Rakyat Economic Stimulus Package on 27 March 2020. Out of the total value of RM250 billion, RM100 billion has been allocated for businesses including small and medium enterprises (SMEs) and RM2 billion has been allocated to strengthen the economy. On 6 April 2020, an additional RM10 billion was allocated to reduce the financial burden of SMEs and to ensure job retention of 2/3 employees in this country.


Additional fund in 5 key initiatives

An additional fund of RM4.5 billion has been provided by the government and Bank Negara Malaysia to cover the following 5 existing key initiatives:

1. Special Relief Facility (SRF)

RM3 billion has been added to the existing RM2 billion fund of Special Relief Facility (SRF) to help alleviate the immediate and targeted cash flow problems faced by SMEs for the sustainability of business operations and the safeguarding of jobs.


Benefits of SRF


Eligibility for SRF

Subject to assessment by the participating financial institutions (PFIs).


Applicable period for SRF

Until 31st December 2020.


How to apply for SRF

Apply directly to any PFI. Some PFIs are listed below:


2. All Economic Sectors (AES) Facility

RM1 billion has been added to the existing RM5.8 billion fund of All Economic Sectors (AES) Facility to enhance access to financing for SMEs and to support growth in all economic sectors, such as agriculture, manufacturing (including agro-based) and services.


Benefits of AES Facility


Eligibility for AES Facility application

Subject to assessment by the PFIs.


Applicable period for AES Facility



How to apply for AES Facility

Apply directly to any PFI. Some PFIs are listed below:


3. Micro Credit Scheme

RM500 million has been allocated to the Micro Credit Scheme administered by Bank Simpanan Nasional, bringing the total value to RM700 million for all micro-entrepreneurs in all business sectors. The interest rate has been lowered to 0% instead of 2% as announced earlier.


Benefits of Micro Credit Scheme


Eligibility for Micro Credit Scheme application


Applicable period for Micro Credit Scheme

Until 31st December 2020.


How to apply for Micro Credit Scheme

More information on the required documents and process can be found on BSN's website.


4. BizMula-i and BizWanita-i schemes

Both BizMula-i and BizWanita-i are direct financing schemes under Credit Guarantee Malaysia Berhad (CGC) for businesses operating for less than 4 years in all economic sectors other than SMEs in the primary agriculture sector and Micro Enterprises.


Benefits of BizMula-i and BizWanita-i schemes


Eligibility for BizMula-i and BizWanita-i schemes application


Applicable period for BizMula-i and BizWanita-i schemes



How to apply for BizMula-i and BizWanita-i schemes

Download the application form from CGC’s website. All required documents are stated in the forms.


5. Government Guarantee Schemes by SJPP

RM5 billion worth of guarantees is provided through Syarikat Jaminan Pembiayaan Perniagaan (SJPP) to SMEs that face difficulties in getting loans. The guarantee coverage has increased from 70% to 80% as well.


Benefits Government Guarantee Schemes by SJPP


Eligibility for Government Guarantee Schemes by SJPP application


Applicable period for Government Guarantee Schemes by SJPP

Until 31st December 2020.


How to apply for Government Guarantee Schemes by SJPP

  1. SMEs apply financing facilities from PFIs.
  2. In case the SME lacks or does not have any collateral, PFIs will submit scheme applications to SJPP directly.
  3. SJPP will review the application for approval and inform the PFIs.


Setting up of new initiatives

6. Government Guarantee Scheme by Danajamin

RM50 billion worth of guarantees is provided through Danajamin Nasional Berhad to viable businesses in all sectors facing difficulties due to the COVID-19 pandemic with a guarantee coverage of up to 80%.


Benefits of Government Guarantee Scheme by Danajamin


Eligibility for Government Guarantee Scheme by Danajamin application

Subject to credit evaluation by Danajamin Nasional Berhad.


Applicable period for Government Guarantee Scheme by Danajamin

1st May to 31st December 2020.


How to apply for Government Guarantee Scheme by Danajamin

To be announced.


7. Special Grant for micro SMEs

A total of RM2.1 billion has been allocated to benefit 700,000 micro SMEs in the country. The government will obtain the list of eligible micro SMEs from SSM and local authorities directly.


Benefits of Special Grant for micro SMEs

RM3,000 is allocated for each micro SME.


Eligibility for Special Grant for micro SMEs application


Application period for Special Grant for micro SMEs

From 1 May 2020 to 15 May 2020


How to apply for Special Grant for micro SMEs

Applications are closed.


8. Micro Sector Business Recovery Financing Scheme (CBRM)

A total amount of RM200 million has been allocated for this scheme. Entrepreneurs can choose between the Micro Credit Scheme or the CBRM.


Benefits CBRM


Eligibility for CBRM application


How to apply for CBRM

It can be done online through the CBRM portal.


Assistance to companies facing cash flow constraints

To reduce the burden of companies in terms of payments towards EPF, HRDF and taxes, several measures have been introduced.


9. Employer Advisory Services (EAS) programme

Introduced by the Employees Provident Fund (EPF) on 15 April 2020, the EAS programme aims to assist employers so that they can continue retaining jobs by offering options to defer, restructure and reschedule the remittance of the employer’s portion of monthly EPF contributions. The conditions of companies will be assessed and customised plans on EPF contributions will be offered. This programme is estimated at RM10 billion to benefit over 480,000 SMEs, besides securing more than 8 million jobs in Malaysia.


Details of EAS

To be announced.


10. Employer COVID-19 Assistance Programme (e-CAP)

In addition to the Employer Advisory Services, EPF has launched e-CAP on 23 April 2020 for SMEs to defer and restructure employer contributions.


Benefits of e-CAP

Eligibility for e-CAP application


Applicable period for e-CAP

April, May, and June 2020.


How to apply for e-CAP

Applications can be made through the e-CAP function in i-Akaun (Majikan) on a monthly basis. Employers not eligible for e-CAP are encouraged to contact EPF for alternative solutions.


11. Human Resources Development (HRD) levy exemption

For Human Resources Development Fund (HRDF) registered employers, the payment of the mandatory Human Resources Development (HRD) levy has been exempted for 6 months to support over 30,000 of the HRDF registered employers from all sectors instead of the initially selected sectors as announced earlier.


Benefits of HRD levy exemption

HRD levy exemption for 6 months.


Eligibility for HRD levy exemption application

All registered employers from all sectors.


Applicable period of HRD levy exemption

1st April to 30th September 2020.


12. Postponement of income tax instalment payments

Regarding the monthly income tax instalment payment to the Inland Revenue Board (IRB), all SMEs are allowed to postpone payments for a period of 3 months, instead of the 6 months deferment for the tourism sector only as announced earlier.


Benefits of income tax instalment payments postponement


Eligibility for income tax instalment payments postponement

All SMEs.


Applicable period for income tax instalment payments postponement

1st April to 30th June 2020 (until 30th September 2020 for the tourism sector).


13. Wage Subsidy Programme

As an extension of the Employment Retention Programme (ERP), the government will subsidise the salary of eligible employees with a total allocation of RM5.9 billion to the Employment Insurance System (EIS) that will benefit 3.3 million employees in the private sector. The allocation has been increased to Rm13.8 billion with amended conditions.


Benefits of wage subsidy programme


Eligibility for wage subsidy programme application


Period of wage subsidy programme

3 months.


How to apply for wage subsidy programme

Application can be made through the PERKESO portal.


Assistance to B40 entrepreneurs

For entrepreneurs and people who belong to the B40 category with a monthly income of RM3,900 and below, a social financing program is introduced by Bank Negara Malaysia in collaboration with Islamic banking institutions, state Islamic religious councils and key implementing partners.


14. iTEKAD programme

This is the first phase of collaboration between Bank Islam Malaysia and selected State Islamic Religious Councils including Majlis Agama Islam Wilayah Persekutuan and implementation partners such as SME Corporation Malaysia that has been introduced in May 2020.


Benefits of iTEKAD programme


Eligibility for iTEKAD programme application


Application period for iTEKAD programme

From 1 May 2020 to 30 June 2020.


How to apply for iTEKAD programme

More information can be found on the iTEKAD webpage. Required documents should be emailed to


Besides the initiatives listed above, these are other initiatives announced:


A survey done by showed that nearly 70% SMEs lost half of their income within the first week of the Movement Control Order imposed to curb the spread of the COVID-19 virus. Despite such pessimistic prospects, actively leveraging the initiatives offered by the Government and preparing for the post-pandemic opportunities would be advisable for all SMEs in Malaysia to pull through this crisis we are facing together now.