Shariah Compliance SME Financing Scheme (SSFS) 3.0

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It is a financing assistance to eligible Malaysian SMEs whereby the Government of Malaysia has agreed to pay 2% (percentage point) of the profit rate charged on the financing provided by Bank Islam.

Scheme Size

RM1 billion


To finance the business activities of eligible SME companies, especially halal products exporters.

Application Period

Maximum of RM1 billion for financing applications approved between 1 January 2019 until 31 December 2020 (Extension until 31st August 2021), or upon full utilisation of the RM1 billion limit, whichever comes first.

Eligible Products

  • Business Financing-i (Term Financing)
  • Business Cash Line-i

Financing Amount

An SME shall be eligible for up to RM5 million:

  • The aggregated amount of all financing provided under this scheme from all Participating Financial Institutions; and
  • SMEs with common controlling shareholders and/or directors except for nominee directors appointed by multinational investors.

SMEs may obtain financing above RM5 million, however only the first RM5 million will be eligible for the 2% profit rebate.

Purpose of Financing

The scope of financing may include the following (All ringgit-denominated Syariah-compliant financing for all purposes including but not limited to) :

  • Working capital;
  • Purchase of assets; and
  • Upgrading of businesses

Priority shall be given to SMEs exporting halal products . SMEs that intends to export their products may also be considered.

Does not include refinancing or restructuring of existing facilities. However, accounts that have been restructured before turning impaired financing in 2019 – 2020 are eligible under the scheme.

Financing Period

  • Up to 5 years from the date of first disbursement (i.e. and/or until 31st March 2026) or until the facility is fully repaid / terminated / recall or terminated due to non-utilization of the facilities, whichever comes first.
  • SMEs may obtain financing for a period exceeding 5 years, however there will be no payment of 2% rebate beyond 2026.
  • Financing that turns impaired financing will not be eligible for the 2% rebate. However, the 2% rebate will be reinstated in the current month of regularisation.

Subsidy Rate

  • 2% of the profit rebate charged by the financing of Bank Islam
  • No subsidy if prescribed profit rate fall below 2% rebate.




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