The Ministry of Entrepreneur Development and Cooperatives (KUSKOP), through its agency SME Corp. Malaysia, has announced an additional allocation of RM6 million specifically aimed at supporting Indian-owned small enterprises. This funding will be distributed through the rebranded Business Accelerator Programme for Indian Small Businesses, also known as I-BAP.
The I-BAP programme offers financial assistance in the form of matching grants of up to RM100,000. The grants are designed to boost the capacity, business performance, and productivity of small and medium enterprises (SMEs). Eligible expenses include acquiring machinery, improving production efficiency, product certification, adopting ICT and eCommerce, integrating Environmental, Social, and Governance (ESG) practices, and supporting marketing and promotional efforts.
Deputy Minister of Entrepreneur Development and Cooperatives, YB Dato’ Sri Ramanan Ramakrishnan, during a press conference after visiting one of the recipient companies, emphasised the programme’s significance. “This allocation for Indian-owned small enterprises through I-BAP is timely, recognising their important role in contributing to the goals of the MADANI Economy framework, which seeks to foster more equitable, inclusive, and sustainable growth,” he stated.
The Deputy Minister also underscored the government’s continued commitment to empowering SMEs, including Indian-owned businesses, to help them reach greater heights. “This aligns with the efforts of Prime Minister YAB Datuk Seri Anwar Ibrahim, who prioritises the success and advancement of the Indian community as part of the Malaysia MADANI vision,” he added.
Ramanan encouraged Indian entrepreneurs to act quickly to take advantage of the limited funds available through I-BAP. “Funds are limited, and only applications that meet all eligibility criteria will be considered. For expenditures not covered under I-BAP, SMEs can also explore alternative financing options available under SME Corp. Malaysia,” he said.
To apply for the programme, Indian-owned businesses must hold at least 60% local Indian equity ownership, have annual sales exceeding RM300,000, have been in operation for at least 12 months, and possess an SME Status Certificate. Applications require five basic documents, and processing takes 14 working days, subject to the submission of complete documentation.
SME Corp. Malaysia’s Chief Executive Officer, Encik Rizal bin Dato’ Nainy, revealed that RM24.12 million in grants has been approved for 197 companies under the Business Accelerator Programme (BAP) this year, with RM1.07 million allocated to 12 Indian-owned companies. “The BAP programme has proven to significantly impact SMEs, with 73.1% of recipients improving efficiency and productivity, 65.4% reporting increased sales and profits, and 30.8% expanding their workforce,” Rizal shared.
The event was also attended by Major (Rtd) Hj. Aziz bin Hj. Mohd Yassin, Chairman of Renewcell (M) Sdn. Bhd., and Encik Anandan Eahambram, Managing Director of Renewcell (M) Sdn. Bhd., both of whom expressed their appreciation for the support provided through the I-BAP programme.
