KLANG: In a new initiative to support Malaysian Indian entrepreneurs in small industries, the government has allocated RM6mil and is offering matching grants of up to RM100,000 to qualified business owners from the community.
The programme, managed by the Ministry of Entrepreneur and Cooperatives Development (Kuskop), aims to accelerate growth and innovation among Indian entrepreneurs in this sector.
Kuskop Deputy Minister Datuk Seri R. Ramanan said the RM6mil allocation is part of the Indian Business Accelerator Programme (I-BAP) for small businesses.
He said that the matching grants are intended to enhance the capacity, capability and productivity of these businesses.
The grants are designed to help entrepreneurs acquire machinery, certify products, implement environmental, social and governance (ESG) practices, market their products and adopt information technology and ecommerce.
To qualify for I-BAP, applicants must be Malaysian Indians with at least 60% equity in their company and an annual revenue of over RM300,000. Additionally, businesses must be at least one year old and have micro, small or medium enterprise (MSME) status.
Applications for the programme will open on Oct 7 and will be approved on a first-come, first-served basis.
“We have simplified the application process, requiring only five documents: business registration, business premises license, financial statements, bank statements, and a quotation for the items to be financed by the grant,” Ramanan said.
“Processing will take just two weeks after submission. We urge Malaysian Indian entrepreneurs in small industries to take advantage of this opportunity under I-BAP, as funds are limited, and only qualified applicants will be considered.”
Ramanan also expressed gratitude to Prime Minister Datuk Seri Anwar Ibrahim and Kuskop Minister Datuk Ewon Benedick for approving the fund allocation to support Indian entrepreneurs.
He said the importance of fully utilising the allocated funds to assist entrepreneurs, which could lead to larger, similar funding in the future.
For applicants whose requests are not approved under I-BAP, Ramanan noted that alternative financing is available through Kuskop’s subsidiary, SME Corp Malaysia.
He highlighted the significance of small industries, which account for 28.5% of MSMEs in the country and contributed RM613bil to the gross domestic product (GDP) last year.
Ramanan also expressed hope that the upcoming Budget 2025 would include incentives to spur business growth for all entrepreneurs, regardless of race, across all sectors.
“As for the Indian community, I hope the Prime Minister will allow more access to funding to grow their businesses. However, I don’t believe in simply giving grants or free money. If funds are provided without effort, the results won’t be favourable. But with matching grants, entrepreneurs will put in their best effort since their own investment is at stake,” he said at a press conference following a visit to industrial battery regeneration and maintenance company Renewcell Malaysia Sdn Bhd on Friday (Sept 27).
Ramanan added that Renewcell, owned by a Malaysian Indian and a recipient of Kuskop grants, has grown significantly, serving as a testimony to the success of government financial assistance.
