New Technology-based Businesses Fund – Business Start-Up Fund (BSF)
Business Start-Up Fund (BSF) For Information And Communication Technology In Malaysia
If there is one thing that has made the world like it is right now, it is technology. Every innovation or let’s say, every major change that has occurred in the world for the past two decades, happened because of technology. This thing has also changed the business world and has its share in the market, with the most successful companies in the world all being based on technology. Besides, it also affects Malaysia, as a country of growing economy. The government has recognized the importance of innovation and has come with an incentive to help the technology-based startups, encouraging more people to invest in the field. So, today we talk about it in details, the Business Startup Fund (BSF).
Business Startup Fund (BSF): What is It?
The Business Startup Fund is a financing scheme, moderated by Malaysian Technology Development Corporation (MTDC). It helps technology-based startups in Malaysia with a loan of up to RM 5 million or 90% of the project cost. The rate is 3.5% per annum, and the tenure is 6.5 years, which also includes an 18 months grace period and five years of repayment period. Also, the financing can be used for working capital or CAPEX, and the loan instrument is the Convertible Promissory Note (CPN). This project is expected to help the technology-based businesses evolve in Malaysia and also bring more Malaysian entrepreneurs in the field of the tech business.
To learn more, you may also read about doing business in Malaysia and guide to start an IT solution business in Malaysia.
Here are the requirements to be fulfilled by a company to be eligible for the program.
- It should be registered and incorporated in Malaysia with SSM under the Companies Act 1965.
- At least 70% ownership of the Company should be by a Malaysian Citizen.
- The product or the services provided by the company should be based on technology and should be innovative, fulfilling the needs of the market.
You could make an application for the Business Startup Fund (BSF) if it fulfils all the requirements set. For that, first, make an application with every required document that shows that you comply the requirements set for the program. This includes company profile, portfolio, registration certification, and even market analysis to show that your products are relevant and scalable. After that, you will need to apply MTDC.
Make sure that while you submit the documents, you will also have to pay a processing fee of RM3,500. You might be asked to produce additional documents during the time of processing and also be given an appointment for an interview. You will receive the funds once you get approved.
Here’s the address of Malaysian Technology Development Corporation.
Malaysian Technology Development Corporation (MTDC)
Level G, Menara Yayasan Tun Razak,
Jalan Bukit Bintang,
55100 Kuala Lumpur
Contact these addresses for more information about the project.
Senior Vice President
Fund Management Division
Tel: 03-2172 6000
Mohd Jerry Tan Mohd Safi
Processing of BSF & BGF
Tel: 03-2172 6000
Well, this was it for the Business Startup Fund (BSF). I sincerely hope this article will help you.