SME Corp. Malaysia and peer-to-peer platform microLEAP have launched a RM35 million financing programme that allows eligible SMEs to convert part of their financing into grants.

The Business Accelerator Programme (BAP) Alternative Financing Programme 2025 (Program Pembiayaan Alternatif BAP 2025) offers Shariah-compliant financing of up to RM400,000 at a profit rate of 3.5 percent per annum.

Up to 40 percent of the financing may be converted into a grant for SMEs with a timely repayment track record, subject to approval from SME Corp. Malaysia.

microLEAP has been appointed as the financing intermediary.

With this latest allocation, total funds channelled under the collaboration since 2021 have reached RM70 million.

The programme supports working capital and business upgrades, covering areas such as machinery and equipment purchases, ESG adoption, product certification, advertising and promotion, and ICT adoption.

Rizal bin Dato’ Nainy, CEO of SME Corp. Malaysia, said,

“This programme reflects our commitment to rethinking SME support, not just through financing, but by embedding incentives that reward financial discipline and business growth.

By enabling up to 40% 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% currently to 5% by 2030.”

YM Tunku Danny Nasaifuddin Mudzaffar, Founder and CEO of microLEAP, said,

“We believe financing should not just be accessible and affordable, it should also reward good financial discipline. 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.”