SME Corp's BMFI@BEEP Initiative launched

11 June 2024

By AVV

KUALA LUMPUR: An alternative loan financing introduced by SME Corp. for Micro, Small, and Medium Enterprises (MSME) under the Bumiputera MSMEs Financing Initiative (BMFI)@BEEP, was launched today.

Minister of Entrepreneur Development and Cooperatives (medc) Datuk Ewon Benedick announced the initiative during the Meet and Greet Tube-X Program Group 1 (North Zone, East Coast Zone and Central/South Zone) here.

According to him this initiative provides loan financing for business working capital up to RM200,000 with a profit rate of up to 3.5 percent per year, which will be managed by P2P Nusa Kapital Sdn Bhd, a Sharia-compliant peer-to-peer funding platform registered under the Securities Commission Malaysia.

“The alternative loan financing through the BMFI@BEEP platform is expected to support MSMEs in providing sufficient working capital and will complement a more inclusive and cost-effective business capital ecosystem for entrepreneurs, especially for young Bumiputera to be more sustainable,” he said.

He expressed his hopes that more MSME entrepreneurs can take advantage of the opportunities provided by MEDC through SME Corp. to further expand their businesses and become the main backbone of the country's economic development.

MEDC will continue to be committed in efforts to strengthen the country's entrepreneurial ecosystem to drive sustainable, progressive, and inclusive economic growth, in line with the vision of the National Entrepreneurship Policy 2030 (DKN 2030) to make Malaysia a leading entrepreneurial nation, he stated.

“As a continuation for new and growing entrepreneurs, SME Corp. also provides grants under the Bumiputera Enterprise Enhancement Program (BEEP) up to RM500,000 to further enhance the productivity and business capabilities that have been established. Under the 12th Malaysia Plan, until May 26, 2024, a total of 883 applications have been approved with a total value of RM107.29 million.”

“If young Bumiputera entrepreneurs require additional business capital, SME Corp. provides alternative loan financing digitally through the Tunas-i Program up to RM100,000 with a profit rate as low as 2 percent per year under Tunas-i managed by Funding Societies (Modalku Venture Sdn Bhd). Approval is within 48 hours after application. Since the Tunas-i Program was launched in November 2023, a total of 84 applications from young Bumiputera entrepreneurs, amounting to RM2.74 million in loans, have been approved,” he shared.

According to him, the number of approvals indicates that this alternative loan financing program is well-received by the young entrepreneur community, especially Bumiputera, to further develop their businesses. Indirectly, it indicates that the businesses established have a strong financial foundation for repayment.

He congratulated the 476 participants of the TUBE-X Group 1 Programme who successfully completed their training on March 10, 2024, adding that he believed all participants have started their businesses and have successfully generated income through their ventures.

“The government always encourages the involvement of the people, especially youth and Bumiputera, in entrepreneurship to advance themselves and move out of the comfort zone from being 'job seekers' to 'job creators',’ he said adding that the TUBE-X programme is an initiative by his Ministry through SME Corporation Malaysia (SME Corp.) to prepare Bumiputera youth who want to start businesses to always think creatively and innovatively so that their businesses are sustainable and competitive.

With the support of an initial grant of RM15,000 from SME Corp., awarded based on the business plan presented during the TUBE-X training, this funding will significantly aid aspiring entrepreneurs in launching and enhancing their businesses, whether they are in the startup phase or already in operation.

Based on the records of the TUBE Programme since its inception in 2014, TUBE Alumni have successfully created 13,866 job opportunities and contributed to a total sales value of RM154.38 million from the businesses they have operated, he said.

In today’s event Ewon also presented course completion certificates to TUBE-X participants, as well as the Best Business Plan Award and Best Participant Award, in addition to witnessing the Memorandum of Agreement (MoA) exchange between SME Corp. Malaysia and P2P Nusa Kapital Sdn. Bhd.

This MoA is in conjunction with the launch of alternative loan financing under the Bumiputera MSMEs Financing Initiative (BMFI) for the Bumiputera Enterprise Enhancement Program (BEEP).

Also present during the event were - were Dato' Sri Suriani binti Dato' Ahmad, Secretary-General of MEDC, and Tan Sri Datuk Seri Panglima Bernard Giluk Dompok, Chairman of SME Corp. Malaysia.