SME Bank Launches RM50 Million Vanigham Financing Scheme
Small Medium Enterprise Development Bank Malaysia Bhd (SME Bank) has unveiled the Vanigham Financing Scheme (VFS), a RM50 million initiative designed to provide critical financial support to small enterprises across Malaysia.
This new facility offers financing between RM100,000 and RM300,000 for asset acquisition, commercial vehicles, and working capital, with the government providing a profit rate subsidy to make the scheme more accessible. Applications will remain open until 31 December 2027, giving entrepreneurs ample time to take advantage of this opportunity.
The launch comes at a crucial time for Malaysia’s MSME sector, which contributed RM613.1 billion to the economy in 2023 and is projected to account for 45% of GDP this year.
Dato’ Sri Ramanan Ramakrishnan, Deputy Minister of Entrepreneur Development and Cooperatives (MECD), highlighted the scheme’s alignment with national economic goals during the launch ceremony.
He said: “The MADANI Government is committed to creating an inclusive and sustainable business ecosystem. Through various agencies including SME Bank, we’ve already channelled RM9.577 billion to over 300,000 entrepreneurs nationwide. The VFS represents another important step in our ongoing support for the MSME sector.”
Datuk Dr. Mohammad Hardee Ibrahim, SME Bank’s Acting Group President and CEO, emphasised the bank’s developmental role in Malaysia’s economic landscape. “We recognise that small entrepreneurs form the backbone of our business ecosystem,” he explained.
“The VFS has been specifically designed to help these businesses scale their operations, enhance their market reach, and ultimately become more competitive – whether they’re operating in traditional sectors or emerging industries.”
The scheme forms part of a broader package of government support for MSMEs under Budget 2025, complementing existing initiatives like the Jaguh Serantau Programme and HalalBiz Financing Programme.
SME Bank continues to play a central role in implementing these measures, having been entrusted with over RM1 billion in funding for programmes targeting key growth sectors including Bumiputera enterprises, technology, ESG-compliant businesses, and the halal and tourism industries.
Beyond the immediate financial assistance, the VFS aims to stimulate strategic entrepreneurship across Malaysia. By making financing more accessible to small businesses, the scheme hopes to encourage innovation and help local enterprises compete more effectively in both domestic and international markets.
The bank has emphasised that the application process has been streamlined to ensure entrepreneurs can access funds with minimal bureaucracy.
Interested businesses can find full details of the Vanigham Financing Scheme on SME Bank’s website (www.smebank.com.my) or by contacting their customer service centre at 603-2603 7700.
With Malaysia’s economy showing steady growth – GDP expanded by 4.8% in the final quarter of 2024 – initiatives like the VFS are expected to play an important role in maintaining this positive trajectory while ensuring the benefits of economic development reach businesses of all sizes across the country.
The launch event was attended by key government figures including Dato’ Sri Khairul Dzaimee bin Daud, Secretary General of MECD, alongside SME Bank’s leadership team, underscoring the collaborative approach being taken to support Malaysia’s entrepreneurial ecosystem.
As the December 2027 deadline approaches, SME Bank anticipates strong demand for the scheme from businesses looking to capitalise on Malaysia’s growing economic opportunities.
