KUALA LUMPUR, SME Corporation Malaysia (SME Corp) has rolled out the Business Accelerator Programme (BAP) Alternative Financing Programme 2025, a fresh initiative aimed at providing financing while rewarding small and medium enterprises (SMEs) for financial discipline.
Backed by an allocation of RM35 million through its partnership with microLEAP, a shariah-compliant peer-to-peer (P2P) financing platform regulated by the Securities Commission Malaysia (SC), the scheme offers SMEs up to RM400,000 in financing at 3.5% per annum. Notably, up to 40% of the financing may be converted into a grant if repayments are made on time.
“This is more than just another loan programme — it is structured to reward good repayment behaviour while directly supporting business growth. With this new allocation, total funds under SME Corp and microLEAP’s collaboration since 2021 have doubled to RM70 million, underscoring our shared commitment to strengthening Malaysia’s SME ecosystem,” the organisations said in a joint statement.
SME Corp chief executive officer (CEO) Rizal Nainy said the scheme is designed to ease the repayment burden while investing in the future of high-potential SMEs. “By enabling up to 40% grant conversion, we are supporting growth-ready businesses, aligning with our target to increase the share of small enterprises transitioning into medium-sized enterprises from 1.6% today to 5% by 2030,” he said.
MicroLEAP founder and CEO Tunku Danny Nasaifuddin Mudzaffar highlighted that the programme was developed in response to the needs of SMEs and market realities. “SMEs shouldn’t be held back by requirements like three years of audited accounts or collateral. If a business is generating revenue, growing, and can manage financing, we want to be there to back them,” he said.
