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Government Business Grants: What You Need To Know

Do you need funding for your startup? We'll explore something everyone dreams of free money or securing a grant from the government. The Malaysian government offers many financial aids and grants to help small and medium businesses. You can save your business from bankruptcy with these grants and financial assistance. You can also use it to boost the growth of your business. Here is a list of grants available to small and medium businesses in Malaysia.

Soft Loans For SMEs (SLSME)

If you're a startup or an SME that's relatively young, check out SLSME. With this business grant from the government of Malaysia, you can get up to RM5 million in funding. You will have access to the range of offerings based on the purpose of the grant, so the amount you can receive varies. To qualify for Soft Loans for SMEs, register as one of the following; - Small and medium-sized enterprises incorporated under the Companies Act of 1965. - Businesses incorporated under the 1956 Business Registration Ordinance. - Malaysians held at least 60% of the equity. - Possess a valid premises license. - Owns SMEs with a shareholding of no more than 20% held by public companies; if applicable, only. A significant focus of SLSME is the manufacturing industry and manufacturing-related services, excluding financial and insurance services. Wage Subsidy Programme (WSP 3.0) It is a financial aid program designed to help SMEs or enterprises registered with MCOs pay salaries and wages. Because of the pandemic, there was a reduction in income, so companies had to sack employees or reduce their payouts. A newly-introduced WSP 3.0 is for all companies to help these groups. There is an employee subsidy of RM600 available for every SME or MSME. Employees with a salary of more than or equal to RM 4,000 are eligible to make claims, and no more than 500 employees can. Targeted Loan Repayment Assistance (TRA) Malaysia's government launched the Targeted Loan Repayment Assistance (TRA) program to help small, medium, and micro enterprises hit by the epidemic. TRA is also available to individuals, solopreneurs, and SMEs. Following the pandemic, SMEs will have six months to repay their debts through Targeted Loan Repayment Assistance. If the loan bearer wants to pay the loan in three installments over three months, they can do so if the loan amount is up to RM 150,000. Alternatively, the loan bearer can extend the payment period to 6 months with a 50% monthly installment reduction. A Targeted Loan Repayment Assistance application is readily accepted. You must submit it to the bank that issued you the loan. A business doesn't need to maintain bank connections. Bumiputera Enterprise Enhancement Programme (BEEP) The Bumiputera Enterprise Enhancement Programme, better known as BEEP, is a specialized SME funding program in Malaysia aimed at helping Bumiputera SMEs become more competitive, resilient, and dynamic. They help increase productivity and offer solutions to SMEs by strengthening their core business and capacity. BEEP provides financing solutions to Bumiputera SMEs, including: - Training - Packaging and labeling - Certification and Quality Management System - Innovation - Advertising, Promotion, and Branding SMEs who qualify for this grant can apply through SME Corporation Malaysia. PERMAI Special Prihatin Grant (GKP) The Special Prihatin Grant is a grant that is available to micro, small, and medium-sized businesses. The funding is for assisting these businesses financially and helping them grow. First announced in 2020, the grant is available to micro, small, and medium businesses. You can receive RM 500 if you are a micro, small, or medium enterprise. According to the Malaysian government, one million businesses will benefit from the grant.

Bottom Line

Malaysian government grants intend to provide SMEs with access to help when needed. Government efforts aim to boost the economy. Thus, government grants are positioned and launched in a way accessible to businesses. These grants are easily accessible to all businesses needing financial assistance, and they maintain grant eligibility relatively. Additionally, government officials assist struggling businesses when they cannot apply. It is even possible for a company to leverage the benefit of a grant without even being registered. Read the full article