The advanced financial and banking sector has enabled the Malaysian manufacturers, especially the small and medium industries (SMIs) to diversify their operations and export overseas. The government creates an environment for the growth and development of globally competitive and resilient small and medium enterprise (SMEs).Initiatives and programmes by the Government are directed towards addressing constraints and enhancing capabilities of SMEs in areas such as financial accessibility, advisory services, marketing, technology and ICT.
Incentives in the form of grants and soft loans are provided by the various Ministries and their agencies.
Grants
To provide greater financial accessibilities, the Government through its agencies offers various grants and incentives to the SMEs. Partial matching grants are provided to finance products and process improvement quality certification and management system improvements, market development, skills upgrading, factory audit and acquisition of strategic technology.
Matching Grant for Business Start-Ups
The aim of this scheme is to assist entrepreneurs (less than 12 months of operation) in starting up of business.
Qualifying Criteria
The grants offered to assist companies to set-up enterprise comprise:
- Manufacturing companies or companies providing manufacturing related.
- Services incorporated under the Companies Act 1965 or
- Enterprise in the manufacturing sector incorporated under the Registration of Business Ordinance 1956 with annual sales turnover of not exceeding RM25 million or
- Full-time employees not exceeding 150: for the services sector, business incorporated under the Registration of Business Ordinance 1956 with an annual sales turnover of not exceeding RM5 million or
- Full-time employees not exceeding 50; at least 60% equity held by Malaysians and
- Possess valid premise license.
Form of Assistance
Assistance is given in the form of a matching grant where 50% of the approved project cost is borne by the Government and the remainder by the applicant. For enterprises in the manufacturing sector incorporated under the Registration of Business Ordinance 1956 assistance is given up to 80% of the approved cost. The maximum grant allocated per application is RM 40,000.
Eligible Expenses
- Expenses incurred in starting up a business, include:
- Preparation of Business Planning
- Related Feasibility Studies
- Rental of incubators and business premises up to 24 months
- Rental of equipment and machineries related to incubator rental
- Development of prototype and
- Product sample and testing
Last Updated on: 18-11-2009
