7 Ways You Can Get Funding for Your Business in Malaysia

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7 Ways You Can Get Funding for Your Business in Malaysia

Starting a new business comes with its own set of challenges. From registering your business to getting a business funding to help you kick-start your venture, it takes a lot of gumption to make it work, no matter what the challenges are.

For those who are looking to get their business funded, we have a few suggestions as to how and where you could get your funding. Consider your options carefully and pick the best that you think suits your business needs and your financial situation.

Here are 7 ways you can get funding for your business in Malaysia:

1. Government grants and loans

7 Ways You Can Get Funding for Your Business in Malaysia

Government grants and loans to seem to the top choice for many entrepreneurs seeking funding for their business in Malaysia. It may be because some government loans do not require a guarantor or collateral, and have no profit rate or processing fees. In recent years, our government has been actively encouraging innovation and entrepreneurship.

This is in line with the ninth strategic challenge under Tun Mahathir’s Vision 2020, which is establishing a prosperous society with an economy that is fully competitive, dynamic, robust and resilient. Aspiring business owners can consider these resources by the government:

  • TEKUN
    Who is it for: Various schemes available for all Malaysians, including special entrepreneurship programmes for ex-military men and young professionals
    Funding range: RM10,000 – RM100,000

  • PROSPER
    Who is it for: Bumiputera youths dabbling in various industries, including fashion, automotive, and photocopy
    Funding range: Up to RM100,000

  • PUNB
    Who is it for: For all types of businesses, including retailers and wholesalers
    Funding range: Varies depending on the scheme
  • TERAS
    Who is it for: High performing Bumiputera companies.
    Funding range: Up to RM1 million

  • SUPERB
    Who is it for: Bumiputera youths
    Funding range: RM500,000

  • MARA
    Who is it for: Various schemes available for businesses
    Funding range: Varies depending on the scheme

  • Yayasan Penjaja dan Peniaga Kecil 1Malaysia
    Who is it for: Non-Bumiputera small-business owners.
    Funding range: RM5,000 – RM20,000 (micro-credit scheme)

  • MyCreative Ventures
    Who is it for: Entrepreneurs in the creative and arts industries.
    Funding range: Up to RM5 million

  • Skim Pembangunan Francais
    Who is it for: For franchisors looking to upgrade their business premises
    Funding range: Up to RM100,000

  • Cradle Fund Sdn Bhd
    Who is it for: Malaysian startups
    Funding range: Up to RM300,000 (Cradle Investment Programme 300/CIP300), up to RM800,00 (Direct Equity 800/DEQ800)

  • SME Bank
    Who is it for: Malaysian SMEs.
    Funding range: RM100, 000 – RM750, 000 (Small Business Financing/SBF), RM50, 000 – RM1mil (Business Accelerator Program/BAP)

Related: 16 IPR Schemes Selangor Residents Can Take Advantage Of

2. Crowdfunding

7 Ways You Can Get Funding for Your Business in Malaysia

The fastest way to reach out to people who share the same passion or cause as you do is through crowdfunding, where everyday individuals can support their favourite companies or projects through small contributions. In short, a crowdfunding platform offers you the chance of not only finding funders but also supporters of your business or cause.  

Check out these popular crowdfunding platforms in Malaysia:

Related: BBazaar Presents Something That Can Change Your Life – The Choice

3. Angel investors

7 Ways You Can Get Funding for Your Business in Malaysia

An “angel” is basically a businessperson who provides financial backing to companies they think will prosper. In return, angels expect to share the financial rewards of the company they invested in.

One of the top benefits of getting angels to invest in your company is their direct involvement, where they bring in relevant experience and provide valuable advice that could help you expand your business.  

These platforms could help you connect with the right angel investor in Malaysia:

Related: 6 Essential Things to Keep in Mind If You’re Planning to Start a Business

4. Venture capital

7 Ways You Can Get Funding for Your Business in Malaysia

In the system of Venture Capital, a third party will act as the partial owner of your business as the third party will be funding for it. Typically, the venture capitalists have a majority of the ownership. These are a few venture capital companies in Malaysia or SEA to consider:

Related: Check Out: 10 Fun and Unique Work From Home Business Ideas

5. Friends and family

7 Ways You Can Get Funding for Your Business in Malaysia

While getting funds and support from your loved ones would be great, it could also ruin your relationships with them if you’re irresponsible. So if you’re considering getting loans for your small business from friends and family, make sure you prepare a fair contract for everyone.

Related: 6 Tips If You’re Planning to Ask Someone to Become Your Loan Guarantor

6. Self-funding

7 Ways You Can Get Funding for Your Business in Malaysia

Self-funding could mean using your personal savings or selling your assets such as your car to generate cash for your business. If you’re going this route, make sure you cover the basics like preparing an emergency fund or a backup fund for you and your family.

Related: 4 Things Freelancers Must Have to Weave a Financial Safety Net

7. Small business loans

7 Ways You Can Get Funding for Your Business in Malaysia

If you’re considering getting a loan from a bank, make sure you have a good credit score first. Most banks offer small business loans, and they are tailor-made to suit your financial needs to start a business. However, banks grant business loans based on your credit history, bank statements and other financial information. Check out our guide on getting a business loan in Malaysia.

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