Terms and Conditions


To provide financing assistance to eligible Malaysian SMEs whereby the Government of Malaysia has agreed to pay 2% (percentage point) of the profit rate charged on the financing provided by Participating Financial Institutions.

Overall financing

• Maximum of RM2 billion for financing applications approved in 2012 and 2013, or upon full utilisation of the RM 2 billion limit, whichever comes first.
• Approved facilities to be registered with SME Corp. Malaysia on first come first serve basis.
• Existing SMEs that comply with the eligibility criteria and currently having Syariah-compliant facilities (performing) approved in 2012 but yet to undergo SCORE / MCORE are eligible to apply.
• No subsidy if prescribed rate fall below 2% rebate.

Purpose of financing

• All ringgit-denominated Syariah-compliant financing for all purposes including but not limited to:
  • working capital,
  • asset acquisition and
  • upgrading of businesses
    excluding non-funded facilities (e.g. bank guarantee and letter of credit) and acquisition of other business and companies.
• Does not include refinancing or restructuring of existing facilities. However, accounts that have been restructured before turning non-performing (NPF) in 2012-2013 are eligible under the scheme.

List of Participating Financial Institutions

• Affin Islamic Bank Berhad
• Alliance Islamic Bank Bhd
• AmIslamic Bank Berhad
• Bank Islam Malaysia Berhad
• Bank Kerjasama Rakyat Malaysia Berhad
• Bank Muamalat Malaysia Berhad
• CIMB Islamic Bank Berhad
• Hong Leong Islamic Bank Berhad
• Kuwait Finance House (Malaysia) Berhad
• Maybank Islamic Berhad
• Public Islamic Bank Berhad
• RHB Islamic Bank Berhad
• HSBC Amanah Malaysia Berhad

Eligibility criteria

• Subject to the respective Participating Financial Institutions credit assessment, own criteria and respective limit of Participating Financial Institutions : AND
• Comply with SME definition as per below : AND

Manufacturing, Manufacturing-Related Services and Agro-based industries Sales turnover of less thanRM250,000 OR full time employees less than 5 Sales turnover between RM250,000and less than RM10 million OR full time employees between 5 and 50 Sales turnover between RM10 millionand RM25 million OR full time employees between 51 and 150
Services, Primary Agriculture and Information & Communication Technology (ICT) Sales turnover of less thanRM200,000 OR full time employees less than 5 Sales turnover between RM200,000and less than RM1 million OR full time employees between 5 and 19 Sales turnover between RM1 millionand RM5 million OR full time employees between 20 and 50

• At least 60% Malaysian owned SME: AND
• Comply to one or more of the following at the point of application:
• SME rated with at least 2 stars under SCORE (The highest is 5 star. Currently there are 5,560 companies rated 2 – 5 stars)
• Microenterprise (ME) rated with at least Level 1 under MCORE (The highest is Level 3. Currently there are 492 companies/firms rated Level 1 – Level 3)
• Certified under 1-InnoCERT
• Certified under National Mark of Malaysian Brand
• Accorded the MSC status by MDeC
• Accorded the Bio-Nexus status by Malaysian Biotechnology Corporation
• Certified under the Green Tech Cert under Malaysian Green Technology Corporation
• TeraS selected SMEs under TERAJU
• For SMEs that do not comply with the above (a-h) but have been granted financing approval, they must apply for SCORE/MCORE within 2 months from financing approval date in order to be eligible. If found eligible, the profit rebate portion that was paid (2% p.a.) will be reimbursed under the scheme from the date of disbursement by Participating Financial Institutions.
• SMEs must sign declaration with the Participating Financial Institutions upon application, stating fulfilment of the above eligibility criteria and to allow disclosure of information on the financing facility by the Participating Financial Institutions to SME Corp. Malaysia (as the implementing agency) and Ministry of Finance.
• Existing SMEs that comply with the eligibility criteria and currently having Syariah-compliant facilities (performing) approved in 2012 are eligible to apply.
• Those financing facilities that currently enjoy profit rebate under other schemes (e.g. Green Tech Financing Scheme) are not eligible under SSFS. However, SMEs may apply under SSFS and enjoy the 2% rebate for the remaining financing amount (subject to a maximum of RM5 million) for the amount not eligible under those other schemes provided the borrower complies with the eligibility criteria under this SSFS.
• SMEs that enjoy profit rebate or where the profit rate is below market rate under other Government-sponsored (including Bank Negara Malaysia) funds or schemes will not be eligible under SSFS, whether current or future. Examples are SME financing schemes under MIDF, SME Bank and Green Technology Financing Scheme.

Eligible sector / coverage

• SMEs undertaking Syariah-compliant business activities in all sectors excluding financial product and services for which the activities are regulated under, among others, the various banking, insurance, takaful and unit trust laws and regulations.
• Shareholding by government development agencies such as PNS, PUNB, MARA, Cradle Fund Sdn Bhd and state development agencies are eligible.
• SMEs approved for Syariah-compliant microfinancing are also eligible.
• Exclude those SMEs having ANY shareholding by:
• Government-linked corporations (GLC)
• Public listed companies (PLC)
• Multinational Corporations (MNC)

Eligibility Period for Profit Rebate

• Up to 5 years from the date of first disbursement (i.e. and/or until 31st December 2017) or until the facility is fully repaid / terminated / recall or terminated due to non-utilization of the facilities, whichever comes first.
• SMEs may obtain financing for a period exceeding 5 years, however there will be no payment of 2% rebate beyond 2017.
• Financing that turns non-performing financing (NPF) will not be eligible for the 2% rebate. However, the 2% rebate will be reinstated in the current month of regularisation.

Maximum amount eligible

• Up to RM5 million per SME based on:
• the approved amount aggregated based on all financing provided under this scheme from all Participating Financial Institutions; and
• common controlling shareholders and/or directors except for nominee directors appointed by VCs.
• SMEs may obtain financing above RM5 million, however only the first RM5 million will be eligible for the 2% profit rebate.

Tax exemption

The profit rebate (subsidy) provided is tax exempted for the customer as per P.U. (A) 33 Paragraph 2(1)(a) dated 30 January 2003.

10MP Working Capital Guarantee Scheme Facility (10MP WCGS)