SME Corp. Malaysia has collaborated with microLEAP to offer MYR 35 million ($8.29 million) grant-convertible financing for small and medium-sized enterprises (SMEs) in Malaysia.

The duo said in a statement on Monday that the Business Accelerator Program (BAP) Alternative Financing Program 2025 (Program Pembiayaan Alternatif BAP 2025) will offer eligible SMEs Shariah-compliant financing of up to MYR 400,000 ($94,764), at a competitive 3.5 percent profit rate per annum, with the possibility of 40 percent of the financing to be converted into grant.

MicroLEAP, a Shariah-compliant peer-to-peer (P2P) financing platform that is regulated by the Securities Commission Malaysia (SC), has been appointed as the financing intermediary under this program.

With the additional allocation from SME Corp. Malaysia, the total funds allocated under the collaboration with microLEAP since 2021 has now become MYR 70 million ($16.58 million).

It reflects a maturing partnership rooted in shared goals: enabling SME growth, deepening financial inclusion, and providing alternative options to financing, especially for businesses that may be underserved by traditional lenders.

“SME Corp. Malaysia is proud to collaborate with innovative financing platforms like microLEAP in delivering solutions that go beyond traditional lending,

“This program reflects our commitment to rethinking SME support, not just through financing, but by embedding incentives that reward financial discipline and business growth,” said Rizal bin Dato’ Nainy, Chief Executive Officer of SME Corp. Malaysia.

“By enabling up to 40 percent grant conversion, we are not only reducing the burden of repayment but actively investing in the future of high-potential Malaysian SMEs that are ready to be scale-up, in line with our target to upscale small enterprises to medium-sized enterprises from 1.6 percent currently to 5 percent by 2030,” he added.

According to the statement, the program offers assistance for both working capital and business improvement purposes, namely machinery and equipment purchases, environmental, social, and governance (ESG) adoption, product certification, advertising and promotion and information and communication technologies (ICT) adoption.

Only SMEs with a timely repayment track record will be eligible to apply for the grant conversion of up to 40 percent of their financing, subject to approval from SME Corp. Malaysia.

SMEs in Malaysia make up more than 96 percent of all businesses, yet many remain underserved by the traditional financial system.

With this new program, SME Corp. Malaysia and microLEAP aim to close that gap, not just with capital, but with confidence.

“This program is a product of listening to small business owners, to market challenges, and to policy direction,

“We believe financing should not just be accessible and affordable, it should also reward good financial discipline,” said Danny Nasaifuddin Mudzaffar, Founder and Chief Executive Officer of microLEAP.

“Through our collaboration with SME Corp. Malaysia, we’re proud to offer a financing product that does just that,

“We’ve always believed that SMEs should not need three years of audited accounts or collateral to access financing. If they’re generating revenue and growing, and they can afford the financing, we will be there to support them,” he added.

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