25th March 2025 - 2 min read
Small Medium Enterprise Development Bank (SME Bank) has unveiled the Vanigham Financing Scheme (VFS), a RM50 million facility designed to bolster small enterprises in Malaysia through accessible, targeted financing support.
Launched today, the VFS underscores SME Bank’s broader commitment to financial inclusion and ensuring that all entrepreneurs, regardless of background or business scale, have equitable opportunities to expand. The scheme will support asset acquisition, commercial vehicle purchases, and working capital needs, enabling businesses to enhance their market reach, competitiveness, and overall sustainability.
Deputy Minister of Entrepreneur Development and Cooperatives (MEDC), Dato Seri Ramanan Ramakrishnan, noted the essential role that micro, small, and medium enterprises (MSMEs) play in Malaysia’s economy. “Malaysia’s Gross Domestic Product grew by 4.8% in the fourth quarter of 2024, with MSMEs contributing RM613.1 billion in 2023. In 2025, they are projected to account for 45% of GDP and 25% of total exports. It is imperative for government-linked entities to support this sector, especially in financing. The VFS is a timely initiative that aligns with the Madani government’s agenda to promote inclusivity, diversity, and a sustainable business ecosystem.”
Ramanan also highlighted MEDC’s continued efforts to empower MSMEs through innovative financing, facilitated by agencies such as Tekun Nasional, Bank Rakyat, SME Bank, Pernas, SME Corp, and the Malaysian Cooperative Commission. These agencies have collectively channelled approximately RM9.577 billion in financing and grants to over 300,000 entrepreneurs nationwide.
Acting Group President and Chief Executive Officer of SME Bank, Datuk Dr. Mohammad Hardee Ibrahim, reiterated the Bank’s developmental mission. “We are fully aware of the importance of providing MSMEs with the necessary financing to fuel their growth. The VFS is a clear demonstration of our role in delivering tailored financing for specific target groups, particularly small entrepreneurs who are vital to the SME ecosystem and the broader Malaysian economy. Through this initiative, we hope to encourage more innovative ventures and foster strategic entrepreneurship across the nation.”
The VFS offers financing between RM100,000 and RM300,000 for machinery, commercial vehicles, and working capital. The scheme includes a government profit rate subsidy and is open for applications until 31 December 2027, offering small entrepreneurs a valuable opportunity to grow their businesses.
Further information on the VFS and other financing programmes is available at www.smebank.com.my, on SME Bank’s official Facebook page, or by contacting SME Bank’s Contact Centre at 603-26037700.
Samuel writes about personal finance and financial news, focusing on how banking updates, policies, and promotions affect everyday money decisions. He enjoys making complicated financial topics easier to follow. Outside of writing, he spends his time watching TV shows and occasionally convincing himself he will only watch one episode.
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How to apply
To apply, you can visit the official SME Bank website and apply through their online application portal.