SME Scheme (Services, Manufacturing & Engineering) Malaysia

SME Scheme (Services, Manufacturing & Engineering) Malaysia

SME scheme (Services, Manufacturing & Engineering): Loan Incentive in Malaysia for Bumiputera Entrepreneurs Build Successful Business

The manufacturing and services sector of business in Malaysia has been flourishing. With a lot of innovations and competition comes a lot of scope and opportunities for businesses to grow, and it has been prevalent in the country. Various schemes have been put forward to help entrepreneurs in these sectors, and among them is the SME scheme (Services, Manufacturing & Engineering). If you are Bumiputera entrepreneur or a business owner in the fields, this is a program that will most probably intrigue you. And here it is, everything you will need to know about the program.

SME scheme (Services, Manufacturing & Engineering) in Malaysia: What is It All About?

The SME scheme is an incentive brought forward by Perbadanan Usahawan Nasional Berhad (PUNB) which helps innovative businesses in service, manufacturing and engineering sector with a loan from RM500,000 to RM5 million, the rate depending on the nature of the business. The financing tenure is up to 7 years. Besides, to get the loan, it is necessary that the company show good potential and scalability.

SME Scheme (Services, Manufacturing & Engineering) Malaysia


Here are the conditions that you need to fulfill to apply for the SME scheme.

  • The applicant must be a Bumiputura, with strong entrepreneurial skills and market understanding and should be a hard working individual with supportive personal traits like honesty, confidence, positivity, self- discipline, creativity and far-sightedness. Also, the person should have the right managerial and communication skills.
  • The business should be incorporated in Malaysia with the SSM and should have acquired all the permits including a valid premises license.
  • The applicant must be able to fund at least 20% of the requirements; this is to show that he/she dedicates to the business firm.
  • The product or service should be scalable and ready for the market, and it should be able to solve the problems of the consumers and be different from what the competitors are providing.
  • Besides, the business model should be such that it helps to reach the goals in an effective way.
  • Profit returns should be in accordance with the investment, and the business should have sound strategies to keep on with the changing market.
  • Also, the business should also have a sound exit strategy, and it should be believable and shown in the application.

You could apply for the scheme if you can comply with these terms.

Application Procedure

You will first need to have a copy of the documents like business registration certificate, portfolio, bank transaction records, profit/loss, e.t.c. Which show that you fulfill the requirements. After that, you will need to visit PUNB.  Then, fill the application forms and an interview will be scheduled where you will be asked about your business, and your personal characteristics will also be figured out.

This was it for SME scheme (Services, Manufacturing & Engineering). I sincerely hope this article will help you.

To learn more, you can read about Equity Policy in the Manufacturing Sector and guide to Malaysia company registration.