Stage 2: Non-dilutive support
Government-backed loans & guarantees
Development financial institutions and guarantee bodies such as SME Bank, TEKUN, BSN, Agrobank, CGC and SJPP offer financing or guarantee cover aimed at SMEs that banks might find hard to serve.
Best suited for
SMEs with limited collateral, Bumiputera, women, youth and sector-focused entrepreneurs.
Pros
- Designed for SMEs, with targeted schemes
- Guarantees can help you qualify at a bank
- Often include advisory and development programmes
Cons
- Scheme rules and eligibility change often
- Documentation and approval can take time
- Allocations can run out before the deadline
Watch out for
Ask the lender which scheme you are applying under and confirm the current terms in writing.
Where to look: Government agencies & support bodies
Real-world examples
- Watermelon farmer in Pasir Puteh
A farmer in Pasir Puteh who joined Agrobank’s Hijrah Asnaf programme in 2023 was reported to have doubled his yield to 20,000 kg per season on 0.8 hectare.
Reported by: The Exchange (opens in new tab)
- Agrobank scale
Agrobank reported disbursing RM10.44 billion in financing in 2024, its highest in five years.
Reported by: NST, 2025 (opens in new tab)
Examples are drawn from public reports and are not endorsements. Results vary and are not typical.
Related options
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