Kuala lumpur: The government is considering increasing the allocation for the Business Accelerator for Indian-owned companies (I-BAP) to RM10 million in the upcoming Budget, following a significant response since its launch last October.
According to BERNAMA News Agency, Deputy Entrepreneur Development and Cooperatives Minister Datuk Seri R Ramanan revealed that of the RM6 million allocated for this year, RM5.13 million has already been approved and is set to be distributed. The remaining RM800,000 is currently being processed, with new applications amounting to an additional RM2 million. This influx has pushed the total applications to over RM8 million.
Ramanan shared that discussions with Minister Datuk Ewon Benedick and SME Corporation Malaysia (SME Corp) CEO Rizal Nainy have led to the proposal of increasing the allocation to RM10 million in the next Budget. Should applications rise to RM14 million or RM15 million next year, the government may propose an additional allocation of RM20 million for the following year.
In a bid to further support small entrepreneurs, there is also a suggestion to increase the rate of matching grants from 50:50 to 70:30 and to broaden the usage scope of these grants to include purchasing raw materials and rental payments for premises. This initiative, suggested by Rizal, aims to reduce operational costs and allow entrepreneurs to focus on growth and innovation.
Chocofac (Malaysia) Sdn Bhd CEO A Micheal Dass, an I-BAP recipient, noted improvements in the application process, describing it as simpler and more inclusive. He expressed optimism that the aid would enhance product development and sales, mentioning the additional support from SME Corp, such as shipping subsidies for international transactions.
MindAppz E-Tuition CEO K Thinesh Kumar highlighted the substantial impact of I-BAP on education technology companies, particularly those introducing AI-based learning systems, which strengthens small and medium enterprises.
Rizal also announced that SME Corp will host SME Venture@ASEAN 2025 from October 16 to 18 at the Malaysian International Trade and Exhibition Centre (MITEC) as part of Malaysia’s role as ASEAN Chair. The event will be inaugurated by Prime Minister Datuk Seri Anwar Ibrahim.