How to Get Funding for Small Businesses in Malaysia

April 03, 2015 | Sharon Cheong

You may have a great concept for a lucrative small business in Malaysia. Entrepreneurs come up with amazing ideas each year, but they just don't have the working capital to get started. Funding for a small business in Malaysia normally requires assets or collateral that can be leveraged in order to obtain a loan. The Malaysian government also offers numerous programs designed to assist investors and entrepreneurs.

Loan Types

Loans for asset acquisition are available and this can be a strategic way to expand your business. Traditional lenders also offer term loans and these types of loans usually work pretty much the same. You will need a solid credit rating, a strong business plan, and assets such as buildings, land or vehicles. The terms and conditions as well as the amount you can borrow depend on many variables.

Short term financing may also be available for items like machinery purchases and working capital. Usually a short-term loan is easier to acquire, but must be repaid more quickly with higher fees and interest rates. Revolving credit (line of credit or LOC) can be a valuable commodity to have. You can use this for your company's day-to-day operations and you only access the money as you need it. This means you aren't paying interest on money until you actually use it.

Trade Financing

This type of financing is a major aspect of the global economy and the World Trade Organization estimates that up to 90% of global trade relies on this method. This category includes all types of lending, bills of exchange purchased (BEP), factoring, trust receipts, issuing letters of credit, export credit and insurance. It is often used by importers and exporters, service providers, banks and financiers. 


Many business owners use factoring to borrow. This is where you sell your accounts receivables (invoices) to obtain fast cash for urgent needs. This should be a last resort, since you, in essence, use assets you don't really have yet to get the loan. It's like mortgaging your business future.

Though there are numerous obstacles to overcome, it's possible to start a small business in Malaysia and grow that into a very profitable venture within just a few years. It does take hard work, a real vision, creativity, and the ability to learn from mistakes. Many prosperous entrepreneurs have amazing success stories of starting small and growing into an international company. Malaysia has everything you need to do this.

Government Friendly

The government of Malaysia has set in place many initiatives and incentives to help investors succeed. Whether you have a great idea for some type of new technology or service, you'll find lucrative opportunities for local and international commerce. Remember to have all your necessary paperwork in order before approaching a lender so that you're fully prepared for whatever questions may come up. 

Serviced Office Space Available

If you'd like to lease beautiful office space in Kuala Lumpur's central business district, you can save a lot of cash by working from a serviced office. Servcorp Serviced Offices have numerous locations in popular areas of the city. Our offices in Menara Standard Chartered are located in the Golden Triangle of Kuala Lumpur. Our offices in Menara Citibank are located in the heart of the city, just a few meters walk from the Ampang Part MRT Station, from which you can get easily to the airport and all parts of Kuala Lumpur. Our offices in Nu Tower 2 are located next to the KL Sentral Station, which is the hub for all kinds of transportation in Klang Valley. It's also one of the main business hubs of Kuala Lumpur where many multi-national companies are located. All these are premium grade buildings with outstanding views where you can enjoy a prestigious address at a competitive rate. There's plenty of dependable transportation in and out of the city along with all the amenities you need to impress your clients. Call for more info.