15th June 2026 - 3 min read
Close to 1,000 asnaf entrepreneurs have started or grown businesses through SME Bank’s iTEKAD ISHRAF programme since 2020. Between them, they have generated about RM40 million in income and created 410 jobs. That RM40 million came from their business takings, not from zakat distributed to them.
SME Bank announced the figures at a graduation ceremony for the latest cohort, iTEKAD ISHRAF 4.0, on 11 June 2026, where it recognised the top participant from each of the 14 states for business growth.
iTEKAD ISHRAF operates under Bank Negara Malaysia’s iTEKAD social finance framework. Instead of handing out zakat as a one-off payment, the programme uses it as seed money for businesses, with the aim that recipients eventually earn enough to become zakat payers themselves.
Participants receive seed capital and training from the Centre for Entrepreneur Development and Research (CEDAR), SME Bank’s training arm. The training covers marketing, digitalisation, financial management, and operations.
The current cycle also introduces ISHRAF (+) Plus, a collaboration with Perbadanan Nasional Berhad (Pernas) that pairs participants with mentors and industry contacts so their businesses can keep growing after the programme ends.
The programme started in 2020 with 20 participants and RM250,000 in zakat funds. ISHRAF 2.0 took in 79 entrepreneurs, the third edition 400, and the current cycle around 420 across all 14 states.
Participants in ISHRAF 2.0 saw their average monthly sales rise from RM3,300 before joining to RM5,100 after, and the cohort’s top five averaged RM22,000 a month.
The current cycle’s RM9 million in funding comes from BNM’s matching grant and partners including Bank Pembangunan Malaysia Berhad, Export-Import Bank of Malaysia, Yayasan Pembangunan Ekonomi Islam Malaysia (YAPEIM), MBSB Bank, Bank Islam, and Bursa Malaysia. In total, the programme has channelled RM30 million in business capital since 2020.
SME Bank is also putting money into halal entrepreneurship outside this programme. As of April 2026, the bank’s halal-related financing portfolio had exceeded RM2 billion, making up more than 20% of its total financing assets. The bank has also helped 75 entrepreneurs get halal certification and distributed RM7 million in halal-related grants to some 137 entrepreneurs.
This comes under the bank’s Five-Year Halal Roadmap covering 2025 to 2029, supported by National Budget 2026 mandates including the HalalBiz Financing Programme.
iTEKAD ISHRAF is coordinated through the 14 State Islamic Religious Councils (SIRCs), which work with SME Bank to identify eligible participants. If you or someone you know qualifies as asnaf and is running or looking to start a small business, visit SME Bank’s website for details on upcoming cohorts.
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As a creative content writer, Eloise has covered finance, business, lifestyle topics, and even moonlights as a singer-songwriter outside of RinggitPlus. Her current interests are learning the best ways to optimise spending and credit card hacks to gain more airline miles.
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