SME Corporation Malaysia and SME digital financing platform Funding Societies have launched a new funding initiative called the Bumiputera MSMEs Financing Initiative (BMFI).
The BMFI will allocate an initial fund of RM6 million to Bumiputera youth entrepreneurs who participated in SME Corp. Malaysia’s Tunas Usahawan Belia Bumiputera (TUBE) programme that was launched in 2014.
As the appointed Financial Partner, Funding Societies will extend its digital financing solutions to the young entrepreneurs through the Tunas Financing-i programme.
Under the BMFI, 7,040 registered entrepreneurs and TUBE alumni will have the opportunity to apply for Tunas Financing-i, with minimal documentation and zero collateral requirement.
The programme offers financing up to RM100,000 with a maximum tenure of 24 months at a competitive profit rate of 2% per annum (p.a.). MSMEs can reportedly get their approvals within two working days.
Rizal bin Nainy, Chief Executive Officer of SME Corp. Malaysia said,
“The specific allocation for Bumiputera youth entrepreneurs under the BMFI is befitting due to their important role with regard to the MADANI Economy framework’s goal in achieving balanced, inclusive and sustainable growth.
We hope to leverage on this partnership with Funding Societies to provide innovative and quick short-term financing solution for Bumiputera MSMEs through digital platform, in addition to existing government funding.”
Chai Kien Poon, Country Head, Funding Societies Malaysia said,
“Collaborating with SME Corp. Malaysia marks a key milestone in our journey to foster the growth and resilience of Bumiputera MSMEs. This partnership is a testament to our shared vision of equipping these dynamic entrepreneurs with the financial assistance they need to thrive and contribute to the nation’s economy.
Microenterprises and youth entrepreneurs play a significant role in realising a more inclusive, sustainable, and balanced growth vision for our country. Yet, they face persistent challenges in obtaining access to financing, often due to a lack of collateral and credit history.” – FINTECH NEWS MSIA