SME Emergency Fund (SMEEF): Malaysia SME Should Know About

SME Emergency Fund (SMEEF): Malaysia SME Should Know About

SME Emergency Fund (SMEEF): SME Financing Scheme Against Natural Disaster in Malaysia

‘Natural Disaster.’ The phrase, definitely is not how we would want a business article start. Natural disasters are not pleasant, wherever they occur, but they happen. They are just part of nature, and we have to accept them, just like they are, even though they affect us negatively. Sometimes, our business premises could be on the receiving side of the wrath, and we might find ourselves in a complicated situation. Well, even if we can’t prevent this thing, there might be some cure, and in Malaysia, it comes on the form of a fund incentive from the government. The government called the program as the SME emergency fund (SMEEF), and today we talk about it in details.

SME Emergency Fund (SMEEF): What is It?

As in its name, the SME emergency fund is a loan scheme in Malaysia that helps the affected SMEs in the country with loan financing to rebuild in the emergency period after a natural disaster. The funding can reach as much as RM100,000, depending on how much the premises has been affected and is provided as both, grant and loan, depending on the type of job the funds are used for. Also, this incentive covers floods, drought, beach erosion and landslide and is mostly for the use of repairing business premises and affected tools.

The scope of the Fund

The funds are provided as a grant for the following tasks:

    • Renovation of the premises, including floor, wall and doors.
    • Repairing the electricity.
    • Refurnishing (repairing the furniture already in the premises).
    • Repairing any types of machinery or tools.
    • The fund is provided as a loan for the following tasks:
      • Working capital (Not for salary or rental).
      • Replacing the damaged equipment with new ones.


Here are the requirements for the business to be eligible for the SME emergency fund.

  • It should be registered with SSM under Companies Act 1960 or Business Registration Act 1956.
  • The corporation should comply with the definition of SME.
  • At least 60% of the equity funds should be based in Malaysia.
  • The company should have a valid business premises license.
  • The business should be operating in disaster areas declared by the National Security Council (MKN) or other District Offices.
  • The business should also need the following documents as evidence that it has been affected by the natural disaster.
  • A letter issued by District Officer
  • A Verification report from the state office of SME Corp. Malaysia
  • Facilitate by the state office of SME Corp. Malaysia.

You may know more about SMEs by reading SMEs in Malaysia.

SME Emergency Fund (SMEEF): Malaysia SME Should Know About

Application procedure

You will need to download the application form SME Corp website, which is different for grant and the soft loan.

You will need to apply with SME Corp. Malaysia, which is also the fund provider and administrator of the program. Besides, MIDF is the loan administrator, and MKN and Municipal Council are collaborators.

Note: You will need to apply for the loan inside three months after National Security Council(MKN) decides the affected area is free from natural disaster.

This was all for SME emergency fund (SMEEF) Malaysia. I hope this article helped you.