The Fund for Small and Medium Industries 2 (FSMI2) is part of the Government's effort to ensure that the eligible small and medium enterprises (SMEs) in both the export and domestic-oriented sectors will have access to financing at reasonable cost.
Financing purpose is available for:
Working capital and / or expansion of production capacity.
Restrictions - financing should not be used for :
Purchase of shares
Refinancing of existing financing facilities
Purchase of land / Real estate investment
Investment holding companies
Activities where stock in trade is money (including credit, leasing, factoring and takaful/insurance businesses) and;
Non-economic or non-healthy activities (including business activities relevant gambling, karaoke, entertainment and sales of liquor)
Maximum tenure: 5 years from the date of the first drawdown from Bank Negara Malaysia
Minimum financing amount of RM50,000
Maximum financing amount of RM5 million per customer.
The total financing would include:
financing approved under any Bank Negara Malaysia Special Funds (including the scheme which was managed by the CGC and;
financing approved for any other related companies (including the scheme managed by the CGC) that have similar share holder (s)
Type of Facilities
Terms and Conditions Apply
Business enterprises / SMEs with full-time employees not exceeding 150 people, OR annual sales turnover not exceeding RM25 million;
Shareholders' fund not exceeding RM2 million;
Shareholding by public listed companies and Government-link companies, if any, should not exceed 20%
51% shareholding must be owned by Malaysian(s) residing in Malaysia. The business must be incorporated under the Companies Act 1965, the Co-operative Societies Act 1993, the Societies Act 1996, and registered with Companies Commission of Malaysia (CCM) or any other authoritative bodies;
The business must not be in operation for more than 7 years. Discretion is given to the Bank to consider SMEs with more than 7 years' operation, provided the average net profit margin is marginal over the last 3 years (i.e. less than 5% net profit margin).
All economic sector.
SMEs in both the export and domestic-oriented sectors under the broad economic sector of Manufacturing (encompassing agro-based and manufacturing-related services, primary agriculture and services sectors (including ICT).
Rates are variable between 4% per annum to 6% per annum, based on the risk profile of the customer
Processing fees is waived.
Maximum guarantee cover of 60% by Credit Guarantee Corporation (CGC).
Guarantee fee is borne by the Bank. CGC guarantee is optional