Funds for Small and Medium Industries (FSMI2)


To ensure eligible SMEs in both the export and domestic-oriented sectors have access to financing at reasonable cost. 

Financing rate : 4% to 6% per annum

Maximum tenure : 5 years

Financing Margin : RM5 million 

Participating financial institutions

        All commercial banks and Islamic banks;

        Small Medium Enterprise Development Bank Malaysia Berhad (SME Bank);

        Bank Pertanian Malaysia Berhad (Agrobank);

        Malaysian Industrial Development Finance Berhad; and

        Sabah Development Bank Berhad. 

Eligibility criteria

        Business enterprise based on the definition of SMEs in Malaysia;

        Maximum shareholders' funds not exceeding RM2 million;

        Shareholding by Public Listed Companies or Government-Linked Companies (if any) should not exceed 20%;

        Malaysian residing in Malaysia and owned minimum 51% shareholding incorporated under the Companies Act 1965, the Co-operative Societies Act 1993, the Societies Act 1966, registered with the Companies Commission of Malaysia or any other authoritative bodies; and

        Not more than seven (7) years in operation.

(However, participating financial institutions may consider cases of SMEs who have been in operation for more than seven (7) years). 

Purpose of financing

        Expansion in productive capacity; or

        Working capital or both. 

Eligible sector : All economic sectors 

Application procedure

Applications should be made through any participating financial institutions. Approvals will be subjected to the normal credit approval procedures and security requirements of the individual participating financial institution. 

For more information:

  Log on to SMEinfo portal

  Call BNMTELELINK   1-300-88-5465

  Facsimile: 03-2174 1515 or E-mail:

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