SME Corp. Malaysia, microLEAP collaborates to offer US$8.3 mil grant-convertible financing for SMEs

• SMEs with good repayment records may qualify for up to 40% grant conversion
• Supports working capital and upgrades in equipment, ESG, certification, promotion & ICT

A new financing programme is swiftly taking shape, designed not just to lend but to reward, through the Business Accelerator Programme (BAP) Alternative Financing Programme 2025 (Program Pembiayaan Alternatif BAP 2025) by SME Corp. Malaysia. In a statement, it was noted that US$8.3 million (RM35 million) has been allocated for this scheme, which offers eligible small and medium enterprises (SMEs) Shariah-compliant financing of up to US$95,000 (RM400,000) at a competitive 3.5% profit rate per annum, with the possibility of converting up to 40% of the financing into a grant.

[RM1 = US$0.22]

microLEAP, a Shariah-compliant peer-to-peer (P2P) financing platform regulated by the Securities Commission Malaysia, has been appointed as the financing intermediary under this programme. With SME Corp. Malaysia’s additional allocation, total funds under the collaboration with microLEAP since 2021 now stand at RM70 million. This reflects a maturing partnership rooted in shared goals: enabling SME growth, deepening financial inclusion, and providing alternative financing options, especially for businesses underserved by traditional lenders.

Rizal bin Nainy, CEO of SME Corp. Malaysia, said, “SME Corp. Malaysia is proud to collaborate with innovative financing platforms like microLEAP in delivering solutions that go beyond traditional lending. This programme reflects our commitment to rethinking SME support, not just through financing, but by embedding incentives that reward financial discipline and business growth.

“By enabling up to 40% grant conversion, we are not only reducing the burden of repayment but actively investing in the future of high-potential Malaysian SMEs that are ready to scale up, in line with our target of increasing the proportion of small enterprises that grow into medium-sized enterprises from 1.6% currently to 5% by 2030,” he added.

Tunku Danny Nasaifuddin Mudzaffar, founder and CEO of microLEAP, said, “This programme is a product of listening to small business owners, to market challenges, and to policy direction. We believe financing should not just be accessible and affordable, it should also reward good financial discipline.

“Through our collaboration with SME Corp. Malaysia, we’re proud to offer a financing product that does just that. We’ve always believed that SMEs should not need three years of audited accounts or collateral to access financing. If they’re generating revenue and growing, and can afford the financing, we will be there to support them,” he added.

The programme supports both working capital and business improvement purposes, including machinery and equipment purchases, ESG adoption, product certification, advertising and promotion, and ICT adoption. Only SMEs with a timely repayment track record will be eligible to apply for the grant conversion of up to 40% of their financing, subject to approval from SME Corp. Malaysia.

SMEs make up more than 96% of businesses in Malaysia, yet many remain underserved by the traditional financial system. With this programme, SME Corp. Malaysia and microLEAP aim to close that gap not just with capital, but with confidence.