SME Bank Launches Vanigham Financing Scheme To Accelerate Growth Of MSMEs

KUALA LUMPUR: 25 March 2025 – Small Medium Enterprise Development Bank Malaysia Berhad (“SME Bank”) today announced the launch of the Vanigham Financing Scheme (“VFS”), a new financing facility with a total fund allocation of RM50 million, dedicated to empowering small enterprises in Malaysia.

The introduction of the VFS bodes well for SME Bank’s broader strategy to enhance financial inclusion and ensure that all entrepreneurial groups receive equal opportunities to expand their businesses. This financing scheme aims to provide much-needed financial support for asset acquisition, commercial vehicles, and working capital – enabling entrepreneurs to scale their businesses, enhance market reach, and boost competitiveness.

YB Dato' Sri Ramanan Ramakrishnan, Deputy Minister of Entrepreneur Development and Cooperatives (“MECD”), highlighted the critical role of MSMEs in national economic growth. “Malaysia’s Gross Domestic Product (“GDP”) grew by 4.8% in Q4 2024, with MSMEs contributing RM613.1 billion in 2023. This year, they are projected to account for 45% of GDP and 25% of total exports. Government-linked entities must actively support this sector, particularly in financing, to drive expansion. SME Bank’s launch of the VFS is timely, aligning with the MADANI Government’s agenda to foster inclusivity, diversity, and a sustainable business ecosystem.”

“MECD has mobilised many initiatives to empower the MSME sector throughout the country and across all sectors through innovative financing offerings. These efforts, through various Government agencies such as Tekun Nasional, Bank Rakyat, SME bank, Pernas, SME Corp and the Malaysian Cooperative Commission have succesfully channelled approximately RM9.577 billion to a total of over 300,000 entrepreneurs nationwide in total financing and grants. Therefore, the Ministry lauds SME Bank for their continuous efforts in providing access to new financing that is more inclusive and comprehensive to ensure that every segment of entrepreneurs can continue to thrive.”

Datuk Dr. Mohammad Hardee Ibrahim, Acting Group President/Chief Executive Officer of SME Bank said, “Aligning with our developmental mandate, we are cognisant of the importance to ensure that all MSMEs are given adequate financing support that can help them elevate the growth of their business. As such, the rolling out of the VFS serves as a testament of our role in providing tailored financing to specific target groups – recognising small entrepreneurs as key contributors in complementing the overall SME ecosystem, whilst serving as one of the key pillars in driving Malaysia’s economy. Through the introduction of VFS, we hope to encourage more innovative business participation and stimulate strategic entrepreneurship across Malaysia.”

The VFS is an RM50 million financing scheme that offers financing from RM100,000 to RM300,000 for machinery, commercial vehicles, and working capital with a profit rate subsidy from the Government. The VFS is open for applications until 31 December 2027, providing a vital opportunity for entrepreneurs to grow and expand their businesses.

The launch of VFS was officiated by YB Dato' Sri Ramanan Ramakrishnan, Deputy Minister of Entrepreneur Development and Cooperatives (“MECD”) and Dato’ Sri Khairul Dzaimee bin Daud, Secretary General of the Ministry of Entrepreneur Development and Cooperatives (“MECD”) in attendance, along with Dato’ Muslim Hussain, Chairman of SME Bank and Datuk Dr. Mohammad Hardee Ibrahim, Acting Group President/Chief Executive Officer of SME Bank.

The VFS not only provides direct financing but also complements key government-led initiatives under National Budget 2025 as it is strategically aligned with SME Bank’s other flagship programmes, including the Jaguh Serantau Programme and HalalBiz Financing Programme to name a few.

Reinforcing SME Bank’s developmental role in empowering entrepreneurs, the Bank in the National Budget 2025 continued to be entrusted by the Government with over 1 Billion of existing and new programmes, focusing on financial inclusion to MSMEs across key strategic sectors such as the Bumiputera, Technology, Environmental, Social and Governance (“ESG”), Halal and Tourism segments.