Tabung Pembangunan Pengangkutan Awam (TPPA)

Tabung Pembangunan Pengangkutan Awam (TPPA): SME Loan In Malaysia For Transportation Services

Tabung Pembangunan Pengangkutan Awam (TPPA), is a loan incentive for commercial bus and taxi operators in Malaysia. This scheme, moderated by SME Bank Malaysia, has been taken as a significant step in the promotion of the public transportation business in the country, making the sector more innovative and managed, and helping for the better service quality. So, if your SME business is oriented towards vehicles of public service, this is a loan scheme you must know about, and we try to provide you with every little detail and information about the program.

Tabung Pembangunan Pengangkutan Awam (TPPA): What is It All About?

Also known as the Public Transportation Development Fund, Tabung Pembangunan Pengangkutan Awam (TPPA) is a loan scheme in Malaysia financing individual entrepreneurs, companies, cooperatives and firms dedicated to the service of public transportation. The financing limit varies from RM30, 000 to RM 10 million with the period and rates depending on the type of services offered by the company. But before knowing about the tenure, let us first look at the qualifications for a company or an individual to be eligible for the scheme.

Tabung Pembangunan Pengangkutan Awam (TPPA)


  • The fund is for an individual, company or a business firm in Malaysia operating public transportation in the country, including bus and taxi services.
  • The company should be incorporated in Malaysia with the Suruhanjaya Syarikat Malaysia (SSM) under the Commercial Vehicle Licensing Board Act 1987 (Act 334) and currently operating in the country.
  • In case of a cooperative, it should have been registered with LPKP and should have a Surat Tawaran Kelulusan (STK) from LPKP.
  • The project should be viable and expanding, with the individual or the firm being able to show that the loan can be paid back.
  • Note: MARA performs the loan assessment for individual applications.
READ ALSO:  Effective Business Ideas for Event Planning in Malaysia

Qualified Public Transport Vehicle Operators/Services

Operators providing these services can apply for the loan scheme:

  • Bus
  • Express Bus
  • Bus Stop
  • School Bus
  • Intermediate Bus
  • Bus Workers
  • Bas Catar
  • Mini Bus
  • Taxi / Car Rental
  • Taxi
  • Luxury Taxi
  • Airport Taxi

Any other operators included in the Act 334, if updated can apply for the program. Private buses or self-drive vehicles are not covered inside this loan scheme.

Financing Period

Taxi / Car Rental: Maximum 5 years or remaining lifetime of the taxi or car.

Bus: Up to 10 years, except for 8-year express bus. Anyway, if the lifetime is shorter than the given years, the financing period depends on the remaining life of the bus.

The financing period can’t exceed the remaining life of the vehicle as fixed by LPKP, so the loan funds can’t be transferred to another vehicle even under the maximum tenure, in case the current vehicle is older.

Financing Terms

  • It doesn’t cover the repair costs after an accident.
  • Financing for roundabouts is not permitted for individual operators.
  • Refinancing is not available.

Application Procedure

To apply for the Tabung Pembangunan Pengangkutan Awam (TPPA), you will have to log in to and select the scheme. Then, you will be asked to provide the documents and information that show you fill in all the requirements of the program. Then, an appointment will be arranged where you will be interviewed and finally, the fund will be provided after your application is approved.