SME Corp Malaysia and Funding Societies, the largest unified SME digital finance platform in Malaysia and Southeast Asia, have introduced the Bumiputera MSMEs Financing Initiative (BMFI) with an initial fund of RM6 million.
The program aims to provide enhanced access to financing for Bumiputera youth entrepreneurs who participated in SME Corp. Malaysia’s Tunas Usahawan Belia Bumiputera (TUBE) program.
Under the BMFI, Funding Societies, as the appointed Financial Partner, will allocate funds through its Tunas Financing-i program, extending digital financing solutions to young entrepreneurs.
The initiative seeks to empower Bumiputera youth by combining the valuable business knowledge gained from the TUBE program with additional financial support. This strategic collaboration aims to help entrepreneurs plan their ventures, innovate offerings, and scale business operations effectively.
The TUBE initiative, launched in 2014, encourages Bumiputera youth aged 18 to 30 to venture into business, fostering resilience, discipline, and leadership in business management.
With the BMFI, 7,040 registered entrepreneurs and TUBE alumni can apply for Tunas Financing-i, benefiting from minimal documentation, zero collateral requirements, and financing up to RM100,000.
The program offers a competitive profit rate of 2% per annum, with a maximum tenure of 24 months. The streamlined online application process ensures quick approvals within two working days.
Rizal bin Nainy, CEO of SME Corp. Malaysia, emphasised the importance of the BMFI in achieving balanced, inclusive, and sustainable growth within the MADANI Economy framework. He highlighted the government’s commitment to supporting MSMEs, allocating RM32.15 billion for access to financing in the 2024 MADANI Budget.
Chai Kien Poon, country head of Funding Societies Malaysia, expressed excitement about collaborating with SME Corp. Malaysia to empower Bumiputera MSMEs. He emphasised the role of microenterprises and youth entrepreneurs in fostering inclusive, sustainable, and balanced growth. The partnership aims to address challenges in obtaining financing and strengthen the MSME ecosystem.
The memorandum of agreement (MOA) formaliaing the partnership was exchanged during the TUBE Alumni Meet & Greet event in Kota Kinabalu, Sabah, witnessed by Datuk Ewon Benedick, minister of entrepreneur and cooperatives development.
For more information on the partnership or Funding Societies’ Tunas Financing-i, visit https://fundingsocieties.com.my/tunas-financing-i.
