Malaysia spares no expenses when it comes to supporting its SMEs – from developing their capacities and capabilities through a countless developmental programmes to developing their businesses via various funding schemes. I am sure most of us would be wondering the 5 W’s at the back of our mind! How? What? When? Whom? Where can we get the details of these funding schemes! Look no further, the recent Budget 2018 announcement can be considered as the new book for SME’s to refer to! Believe it or not, a close to RM 20 billion was allocated for SMEs, the largest ever in the history of the country’s budget . Here the most interesting incentives not to be missed by tech-based companies in 2018: –
• Skim Jaminan Pembiayaan Perniagaan for working capital and services sector (RM7bil)
• Government Guarantee loans under SJPP to enable SMEs to automate production (RM1bil)
• Syariah-compliant SME Financing Scheme with subsidy rate of 2% (RM1bil)
• Soft loans, grants and training programmes for SME under SME Corp (RM200mil)
• Development of halal industries and products under various agencies (RM82mil)
• SME loans through Koperasi Jayadiri Malaysia Bhd (Kojadi) (RM50mil)
• Indian Community Entrepreneur Development Scheme (SPUMI) under Tekun (RM50mil)
• Expand export market and promotion (RM150mil)
• Insurance coverage credit facility for SME exporters (RM1bil)
• Loans to enhance automation of local furniture production for export (RM100mil)
• Extend the incentive period for Accelerated Capital Allowance on automation equipment 2018-2020
• Accelerated Capital: Allowance Incentive up to 200% for manufacturing and manufacturing-related-services sectors
• Capital Allowance Incentive for ICT equipment beginning 2018-2020
These schemes were created to cover your cost right from the ideation stage to the product commercialisation stage. So, what are you waiting for! Do you have what it takes? How can you work to land a successful investment? No worries, this 2nd edition of BE IT Buzz has this tips for you to unreveal your truest business potential. TPM’s will help you to build a sexy business first then the funds will come to you.! What makes a business sexy then? You must make your business bankable. Make every aspect of your business look sexy to the funders – especially these three elements:
1. Your product: To begin with, ask yourself this question; why is your product important and needed? First and foremost, describe your solution, at a high level, for the unmet market demands then drill in on how your products are differentiated.
2. The business:
Show the funders that your business is a strong entity equipped with sound financial standing and dedicated team which committed to building something big and they will be great to work with. Provide documentation to show your business financial standing that could back you up while you are executing the project. And rest assured, by putting together a set of thoughtful projections on both the revenue and cost sides as an added value for the investor to measure your credibility. However, it is critically important to demonstrate that your company has set the business plan at its optimum level which would justify the capital you are raising and how you intend to deploy it to meet the milestones. Well again, your audience may feel projections are premature in assessing the business, however, be reminded fellow SME’s, the investor will appreciate that you understand your financial metrics and how to “operate” a business.
3. The founder:
Finally, YOU must be able to demonstrate your passion and your real expertise. Convince your investor you are committed and know what you’re doing if you want their money.”
Trust us, these 3 simple rules would make a significant impact to your presentation! COME ONBOARD… here in IIC, we are not just giving your access to funding but also a comprehensive programme and guidance which precisely tailored to minimise your exposure to risks and the subsequent effects of failure in the process of funding applications! 😉
What would be TPM’s role in elevating the business, tech know-how, and also more importantly, home grown technopreneurship within the SME’s ecosystem in Malaysia?
Since the very concept of technopreneurship breaks away from the existing economic order by reducing strategic business risks by way of leveraging on a stable, dedicated and experienced mentor-based partnerships, technopreneurs would be able to focus on core technical abilities and rapid prototyping of new products & services to capture a vast segment of customers especially in emerging markets. When new businesses export goods and services to nearby regions, these enterprises contribute directly to a region’s productivity and earnings. This increase in revenue strengthens an economy and promotes the overall welfare of a population. This has never been more true than it is today, as we live in an increasingly interconnected global economy.
Looking at these new market opportunity, under the 4th Generation Incubation Model, TPM strives to continuously empower the people (technopreneurs) by adopting a new strategy that is geared towards a smart-partnership approach with mentor-driven programmes in technical and business advisory, provision of facilities for production, labs, amenities, collaborative arrangements with Institutes of Higher Learning and Research Institutes, connecting with industry players and providing funding arrangements through our very own financing schemes, or by matching companies to relevant government grants and alternative funding.
To stay relevant and competitive, TPM had initiated a partnership program with institute of higher learning and research centers that allow more ideas and values to develop, and give the local industry greater opportunities for global presence. These programs are designed to assist sme’s to upskill and upgrade their business efficiency and competitiveness. Under these new incentives, TPM collaborated with other related tecno-based agency and venture capital which come in as a financial assistance to the business – from start-up, research and development right to marketing and distribution.