Financing for Malay Companies to Grow and Expand
Updated on Monday 16th October 2017
Small and medium sized (SME) companies in Malaysia can benefit from important financing programs established by the local government. Investors interested in starting the procedure of company formation in Malaysia may apply for numerous grants that can enhance the value of a company, depending on the business field in which the it is registered. One of the programs available in Malaysia is the Bumiputera Enterprise Enhancement Programme (BEEP) for which specific businesses may apply. By September 2017, the BEEP offered 1,858 grants to local companies, accounting for RM 167,79 million and our team of specialists in company registration in Malaysia can offer in-depth assistance on the main criteria established under the BEEP program.
Eligibility criteria for BEEP companies in Malaysia
Investors involved in specific business fields/activities can apply for one of the grants offered by the local government, if the minimum conditions established under the respective program are met. In the case of the grants provided by BEEP, companies can receive assistance in key aspects of a business registered in Malaysia as small and medium sized company, as follows:
• packaging and labelling;
• certification and quality management system;
• innovation and product development;
• advertising, promotion and branding;
• purchase of machinery and equipment.
In order to obtain the grant under the BEEP program, the applicants will need to fulfill specific criteria, one of them referring to the registration of the company under the regulations of the Companies Act 1965.
It is also necessary for the applicant company to fulfill all the characteristics available under the definition of a SME company in Malaysia. At the moment, when the company will apply for a grant, it should have already started its operations for a period of minimum six months. Our team of agents in company formation in Malaysia can provide investors with further details on the eligibility criteria.
BEEP grants in 2017
Until September 2017, companies registered in Malaysia obtained grants under the BEEP program with a total value of RM 167,79 million. The grants have had a positive result on the activities of the companies, as they’ve increased the competitiveness of the products or services generated on the local market. Each applicant company can obtain a funding with a value of RM 500,000 to further increase the competitiveness in the above mentioned key aspects, that are usually encountered in a SME business.
Investors are welcomed to contact our team of consultants in company registration in Malaysia for further information on the business grants available in this country.