SME Corporation Malaysia (SME Corp. Malaysia), an agency under the Ministry of Entrepreneur and Cooperatives Development (MECD) and Funding Societies, a unified SME digital finance platform in Malaysia and Southeast Asia, have allocated an initial fund of MYR 6 million ($1.27 milion) for Bumiputera youth entrepreneurs.
Funding Societies said in a statement on Tuesday that the funding which is under the newly launched program, Bumiputera micro, small and medium-sized enterprises (MSMEs) Financing Initiative (BMFI), is aimed at enhancing access to financing for MSMEs who participated in SME Corp. Malaysia’s Tunas Usahawan Belia Bumiputera (TUBE) program.
“The specific allocation for Bumiputera youth entrepreneurs under the BMFI is befitting due to their important role with regard to the MADANI Economy framework’s goal in achieving balanced, inclusive and sustainable growth,” said Rizal bin Nainy, Chief Executive Officer of SME Corp. Malaysia.
“We hope to leverage on this partnership with Funding Societies to provide innovative and quick short-term financing solution for Bumiputera MSMEs through digital platform, in addition to existing government funding,
“Hence, it is envisaged that more Bumiputera MSMEs will take advantage of this initiative to address their financing needs, especially in working capital,” he said.
According to him, this partnership is a testament to the firm’s shared vision of equipping these dynamic entrepreneurs with the financial assistance they need to thrive and contribute to the nation’s economy.
“Microenterprises and youth entrepreneurs play a significant role in realising a more inclusive, sustainable, and balanced growth vision for our country. Yet, they face persistent challenges in obtaining access to financing, often due to a lack of collateral and credit history,
“As a leading digital financing platform in the region with a proven track record of promoting financial inclusion among MSMEs, we are honoured to have the opportunity to work with SME Corp. Malaysia in further empowering these young entrepreneurs,” he added.
It acts as the central point of reference for research and data dissemination on SMEs and entrepreneurs, as well as provides business advisory services for MSMEs and entrepreneurs throughout Malaysia.
Funding Societies | Modalku is a fintech firm registered with the Securities Commission Malaysia (SC), as well as licensed in Singapore, Indonesia, and Thailand, and operates in Vietnam.
It is backed by SoftBank Vision Fund 2, SoftBank Ventures Asia, Sequoia Capital India, Alpha JWC Ventures, SMBC Bank, Samsung Ventures, BRI Ventures, Endeavor, SGInnovate, Qualgro, and Golden Gate Ventures amongst others.
The FinTech company provides business financing to small and medium-sized enterprises (SMEs), which are funded by individual and institutional investors.