Kuala lumpur: SME Corporation Malaysia (SME Corp) has introduced the Business Accelerator Programme (BAP) Alternative Financing Programme 2025, aiming to provide both financial support and incentives for small and medium enterprises (SMEs).

According to BERNAMA News Agency, the programme, launched in collaboration with microLEAP, a shariah-compliant peer-to-peer financing platform regulated by the Securities Commission Malaysia, allocates RM35 million to offer SMEs financing of up to RM400,000 at an annual rate of 3.5 per cent. A notable feature of this scheme is the potential for up to 40 per cent of the financing to be converted into a grant for timely repayments.

“This is not simply another loan scheme. It has been designed to reward financial discipline and to directly support growth,” SME Corp and microLEAP stated in a joint announcement. The current allocation doubles the total funds under their collaboration since 2021 to RM70 million, reflecting a strong commitment to enhancing the growth of small businesses in Malaysia.

Rizal Nainy, CEO of SME Corp, emphasized that the grant conversion component not only eases repayment obligations but also represents an investment in promising Malaysian SMEs. This initiative aligns with SME Corp’s goal to upscale small enterprises to medium-sized enterprises, increasing from 1.6 per cent currently to five per cent by 2030.

Tunku Danny Nasaifuddin Mudzaffar, founder and CEO of microLEAP, highlighted the programme’s responsiveness to the needs of small business owners and market conditions. By eliminating the need for extensive audited accounts or collateral, the programme aims to provide accessible financing to revenue-generating and expanding SMEs.