Funds for Small and Medium Industries 2 (FSMI 2)


To ensure eligible SMEs in both the export and domesticoriented sectors have access to financing at reasonable cost

Financing type
Financing rate

4% to 6% per annum

Financing tenure

Up to 5 years

Financing amount (max)

RM5 million Purpose of financing:

  • Working capital
  • Capital expenditure
Purpose of Financing
Working Capital
Eligibility criteria

Business enterprise as defined by the National SME Development Council:

  • Maximum shareholders’ funds not exceeding RM2.0 million
  • Shareholding by Public Listed Companies or Government-Linked Companies (if any) should not exceed 20%
  • Malaysian residing in Malaysia and owned minimum 51% shareholding incorporated under the Companies Act 1965, the Co-operative Societies Act 1993, the Societies Act 1966, registered with the Companies Commission of Malaysia or any other Malaysian authoritative bodies
  • Not more than seven (7) years in operation. However, participating financial institutions may consider cases of SMEs who have been in operation for more than seven (7) years, provided that the average net profit is marginal over the last three (3) years (i.e. less than 5% net profit margin)
Application procedure

Applications should be made through any participating financial institutions for financing facilities or to obtain additional information about these schemes. Approvals will be subject to the normal credit approval procedures and security requirements of the individual participating financial institution

For further information

SMEs can contact the customer service centres of the respective Participating Financial Institutions (PFIs):

  • All commercial banks and Islamic banks
  • SME Bank
  • Agro Bank
  • Sabah Development Bank Berhad

Development Finance and Enterprise Department Bank
Negara Malaysia (BNM)
Jalan Dato’ Onn
50480 Kuala Lumpur
Tel: 1-300-88-5465
Email: [email protected]