SME Bank
Malaysian government-owned development finance institution providing Shariah-compliant financing and capacity-building services to micro, small, and medium enterprises, with a mandated focus on underserved segments including Bumiputera, women, ethnic-minority, and asnaf entrepreneurs.
- Company typePrivate
- Founded2005
- HeadquartersKuala Lumpur, Malaysia
- Headcount501–1,000
- GTM typeB2B
- OfferingServices
What SME Bank does
SME Bank (legally Small Medium Enterprise Development Bank Malaysia Berhad) is a Malaysian development finance institution (DFI) founded in 2005 and headquartered in Kuala Lumpur. It is wholly owned by the Ministry of Finance Malaysia, supervised by the Ministry of Entrepreneur and Cooperatives Development, and operates as a subsidiary of Bank Pembangunan Malaysia Berhad (BPMB) Group alongside sister entity EXIM Bank. The bank's mandate is to provide Shariah-compliant financing and "beyond-financing" development support to micro, small, and medium enterprises (MSMEs), with an explicit focus on unserved and underserved segments including Bumiputera, women, Chinese, Indian, and asnaf (zakat-recipient) entrepreneurs. Over roughly 20 years it reports having delivered more than RM50 billion in financing and developmental impact to over 90,000 entrepreneurs.
The product portfolio is built on Islamic banking infrastructure and includes financing programmes such as Dana Induk Payung (DIP), Technology Adoption Fund (TECHAD), SME Technology Transformation Fund (STTF), HalalBiz, Contract Financing, MySMELady 2.0 (women), Pembiayaan SME Bank SUCCESS (Chinese entrepreneurs), Vanigham+ (Indian MSMEs), and Jaguh Serantau, supported by instruments such as Commodity Murabahah Term Financing-i, Revolving Credit-i, Cash Line-i, and Kafalah Bank Guarantee-i. Beyond financing, the bank runs capacity-building through its wholly owned CEDAR subsidiary (Centre for Entrepreneur Development and Research, appointed ASEAN Centre of Excellence for MSMEs in Green Transition), the iTEKAD ISHRAF Islamic social-finance programme, export facilitation (Business Exports Programme, SME Bank XCESS, BizConnect), and market intelligence via the SME Sentiment Index. Digital channels include the MySMEBank online application portal and the Elsa App.
The business model generates revenue primarily from profit rates on Shariah-compliant financing plus processing fees, facility fees, bank guarantee and trade-finance commissions (e.g., contract financing facility fee of 0.1%, bank guarantee 0.125% per month, letter of credit 0.15% per month), with all fees subject to 8% SST. Secondary revenue derives from beyond-financing/professional services delivered through CEDAR. Go-to-market is relationship-based direct sales through a 17-branch network and Enterprise Centres, complemented by government agency partnerships (Bank Negara Malaysia, MATRADE, 14 State Islamic Religious Councils) and digital self-service. Strategic initiatives are mandated and funded through National Budget allocations, with close to RM2 billion earmarked under National Budget 2026.
SME Bank firmographics
Firmographics- Name
- SME Bank
- Legal name
- Small Medium Enterprise Development Bank Malaysia Berhad (197901005290 (49572-H))
- Website
- https://smebank.com.my
- Company type
- Private
- Founded year
- 2005
- Operating status
- Operating
- Headcount range
- 501–1,000 employees
- Short description
- Malaysian government-owned development finance institution providing Shariah-compliant financing and capacity-building services to micro, small, and medium enterprises, with a mandated focus on underserved segments including Bumiputera, women, ethnic-minority, and asnaf entrepreneurs.
- Ownership category
- akta.pro rank
SME Bank industry classification
Industry- Product category
- Development Finance / MSME Banking
- NAICS
- Commercial Banking (522110)
- SIC
- Miscellaneous Business Credit Institution (6159), Short-Term Business Credit Institutions (6153)
- akta.pro primary industry
- General SME & Middle-Market Commercial Banking (FSABABAA)
- akta.pro secondary industries
- Islamic SME & Commercial Banking (FSABAGAB), SME Business Lending (Term Loans, Lines of Credit, Overdrafts) (FSABABAB)
Keywords
Where SME Bank is headquartered
LocationHeadquarters
- HQ city
- Kuala Lumpur
- HQ country
- Malaysia
- HQ region
- Asia
Offices1 record
Markets served
SME Bank business model
Business model- GTM type
- B2B
- Offering type
- Services
- Cost components
- Personnel, Operations, Technology or R&D, Marketing or Sales, Infrastructure, Others
Revenue model
- Financing Activities: SME Bank generates revenue primarily through providing Shariah-compliant financing facilities to micro, small, and medium enterprises. Revenue is earned through profit rates on financing, processing fees, facility fees, and commission-based services such as bank guarantees and trade finance documentation.
- Beyond Financing Services: Revenue from capacity-building programs, training services through CEDAR subsidiary, and advisory services provided to entrepreneurs as part of integrated development support.
Pricing tiers
| Model | Billing | Price |
|---|---|---|
| Transaction based/ take rate | One time/ perpetual license | Processing Fee - Up to RM10 million |
| Transaction based/ take rate | One time/ perpetual license | Processing Fee - RM10 million to RM20 million |
| Transaction based/ take rate | One time/ perpetual license | Processing Fee - Above RM20 million |
| Transaction based/ take rate | One time/ perpetual license | Contract Financing Facility Fee |
| Transaction based/ take rate | One time/ perpetual license | Amendment/Variation of Facility |
| Transaction based/ take rate | Monthly | Bank Guarantee Fee |
| Transaction based/ take rate | Monthly | Letter of Credit Issuance |
| Subscription | Annual | Working Capital Financing Campaign 2026 |
Go-to-market motion2 records
Distribution channels4 records
Marketing channels5 records
SME Bank product offering
Product offeringCore offering
SME Bank is a development finance institution providing Shariah-compliant financing facilities to Malaysian micro, small, and medium enterprises (MSMEs). Its product portfolio includes term financing, working capital, contract financing, revolving credit, bank guarantees, and letters of credit, alongside specialised programmes for women, Bumiputera, Chinese, Indian, and asnaf entrepreneurs. Beyond financing, the bank delivers capacity building, training, export facilitation, and Islamic social finance support to strengthen MSME resilience.
Product overview
SME Bank operates as a development finance institution providing a comprehensive suite of Shariah-compliant financing products and beyond-financing services to Malaysian MSMEs. The portfolio includes sector-specific financing programmes such as Dana Induk Payung (DIP) for anchors and franchisors, Technology Adoption Fund (TECHAD) for digitalization, HalalBiz for halal industry participants, and MYSMELADY 2.0 for women entrepreneurs. The bank also offers Contract Financing for government contractors, SME Technology Transformation Fund (STTF) for automation, and Dana Pemangkin Ekosistem IBS 3.0 for industrialized building systems. Specialised initiatives include iTEKAD ISHRAF for asnaf entrepreneurs, SME Bank SUCCESS for Chinese entrepreneurs, and Vanigham+ for Indian MSMEs. Beyond financing, the bank provides capacity building through CEDAR (appointed ASEAN Centre of Excellence for MSMEs in Green Transition), export facilitation via the Business Exports Programme, and the SME Sentiment Index for market intelligence.
Differentiator
Problem solved
Functional benefit
Brands
- Elsa App: Digital application launched to propel 10,000 SMEs forward, advancing Malaysia's digital transformation
- MySME Bank
- iTEKAD ISHRAF
- ISHRAF (+) Plus
- SME Bank XCESS
- CEDAR
- BizConnect
Products and services
- Contract Financing Financing package for Main Contractors or Nominated Sub-Contractors who have secured contract(s) or future contract(s) from approved awarding parties mainly Government Ministries, Departments or Agencies. Offers working capital and bank guarantee facilities.
- Pembiayaan SME Bank SUCCESS Shariah-compliant financing facilities for Chinese entrepreneurs under Micro, Small and Medium Enterprises (MSMEs) to elevate their business in terms of production capacity, market penetration and competitiveness.
- Dana Induk Payung (DIP) Financing for the purchase of business assets and/or working capital requirements for companies with the status of or aspiring to be an 'Anchor', 'Franchisor', and 'Licensor'.
- Technology Adoption Fund (TECHAD) Financial assistance for Micro, Small and Medium Enterprises (MSMEs) to adopt digitalisation and transition towards smart factories in their business operations, enabling higher productivity and greater market penetration.
- HalalBiz Financing programme to encourage participation of MSMEs in the Halal industry ecosystem in Malaysia, supporting halal certification and value chain integration.
- MYSMELADY 2.0 Financing for women entrepreneurs for asset acquisition and/or working capital requirement to elevate their business in terms of production capacity, market penetration and competitiveness.
- Relief and Adaptation Facility (RAFT) A fund by Bank Negara Malaysia (BNM) as part of its efforts to support Micro, Small and Medium Enterprises' (MSMEs) flood preparedness and business resilience amid worsening flood risks in Malaysia.
- iTEKAD ISHRAF Islamic social finance programme implementing Bank Negara Malaysia's iTEKAD framework to empower asnaf and underserved entrepreneurs through seed capital, structured mentorship, business development support, and market linkage opportunities.
- Dana Pemangkin Ekosistem IBS 3.0 Financing to support companies that use IBS system in its construction method, or manufacturers and installers of IBS construction materials, that possess IBS certification from CIDB.
- SME Technology Transformation Fund (STTF) Expand business through adaptation of technology, digital and automation with STTF to enhance operational efficiency and competitiveness.
- Vanigham+ Financing Scheme A financing facility to support Indian Micro, Small & Medium (MSMEs) businesses for asset acquisition and working capital requirement helping them grow their business, expand their reach, and boost their competitiveness.
- SME Stabilisation Relief Facility (SME SRF) Provide short-term financial relief and alleviate cash flow constraints faced by MSMEs, amid economic shocks.
- Jaguh Serantau Financing programme for Bumiputera SMEs with the potential to become regional champions, supporting expansion into or preparation for regional markets.
- 2026 Working Capital Financing Campaign Financing facility offered to existing SME Bank's customers in supporting their working capital needs, with the objective of strengthening cash flow, support growth, and ensuring business continuity. Up to RM1.0 million per customer; Profit rate: BFR - 0.75% per annum; Margin of financing up to 100%; Tenure up to 5 years.
- Business Exports Programme An export facilitation grant assisting Bumiputera SMEs in the manufacturing and services sectors to expand into global markets, providing capacity building and market access support.
- CEDAR (Centre for Entrepreneur Development and Research) The Bank's dedicated training and capacity-building arm providing training in marketing, digitalisation, financial management and operations to support business growth and market expansion. Appointed as ASEAN Centre of Excellence for MSMEs in Green Transition.
- Elsa App Digital application by SME Bank designed to propel 10,000 SMEs forward, advancing Malaysia's digital transformation.
- Takaful Services Shariah-compliant insurance (Takaful) services offered by SME Bank to its MSME customers.
- Treasury Services Treasury services offered by SME Bank to its MSME customers.
- Adhoc Bank Guarantee Adhoc bank guarantee facility offered by SME Bank to its MSME customers.
Quantifiable outcome
- Total approved financing of approximately RM4.3 billion in 2025, marking 19% year-on-year increase
- +2 more outcomes
Companies that use SME Bank
Customer profileNamed customers3 records
Segments7 records
Ideal customer profiles8 records
SME Bank technology and API
TechnologyTechnology focussed No
API detail
- Has API
- No
- API docs
- API detail
Core technology
AI maturity
App detail
SME Bank partnerships and signals
Strategic signalPartnerships
14 partnerships are on record, tiered core and supporting.
- Bank Pembangunan Malaysia Berhad (BPMB) GroupcoreSME Bank is a subsidiary of BPMB Group, operating as an integrated development finance platform together with EXIM Bank. BPMB Group coordinates strategic initiatives including over RM9 billion in mandates under National Budget 2026.
- Malaysia External Trade Development Corporation (MATRADE)coreCollaboration on BizConnect with Exporters Programme providing integrated advisory services, strategic partnerships, and market access support for export-oriented Malaysian businesses.
- Bank Negara Malaysia (BNM)coreSME Bank operates under BNM's Performance Measurement Framework (PMF) and iTEKAD social finance framework. Strategic alignment on developmental impact and financial inclusion initiatives.
- Export-Import Bank of Malaysia Berhad (EXIM Bank)coreEXIM Bank is a sister subsidiary under BPMB Group. Collaborative participation in iTEKAD ISHRAF 4.0 with crowd-in contributions and joint developmental initiatives.
- Yayasan Pembangunan Ekonomi Islam Malaysia (YAPEIM)supportingStrategic partner providing crowd-in contributions for iTEKAD ISHRAF 4.0 programme supporting asnaf entrepreneurs.
- MBSB BanksupportingStrategic partner providing crowd-in contributions for iTEKAD ISHRAF 4.0 programme.
- Bank Islam Malaysia BerhadsupportingStrategic partner providing crowd-in contributions for iTEKAD ISHRAF 4.0 programme.
- Bursa Malaysia BerhadsupportingStrategic partner providing crowd-in contributions for iTEKAD ISHRAF 4.0 programme.
- Perbadanan Nasional Berhad (Pernas)supportingCollaboration on ISHRAF (+) Plus under iTEKAD ISHRAF 4.0 to strengthen market readiness and long-term business sustainability for participating entrepreneurs.
- PETRONASsupportingInstitutional partnership with PETRONAS for Glide Technology's lubricant manufacturing operations, demonstrating ecosystem integration.
- CDC InternationalsupportingStrategic partnership advancing entrepreneurs' financial and digital capabilities through collaborative programmes.
- Bank Simpanan Nasional (BSN)supportingStrategic partnership to spark innovative growth for Malaysian entrepreneurs. BSN has 387 branches compared to SME Bank's 17 physical locations, offering complementary geographic reach.
- State Islamic Religious Councils (14 SIRCs)coreClose collaboration with 14 State Islamic Religious Councils across Malaysia in advancing inclusive entrepreneurship through iTEKAD ISHRAF programme.
- CEDAR (Centre for Entrepreneur Development and Research)coreSME Bank's dedicated training and capacity-building subsidiary providing coaching in marketing, digitalisation, financial management and operations. Appointed as ASEAN Centre of Excellence for MSMEs in Green Transition.
Scale indicators13 records
Recent moves6 records
Expansion highlights6 records
SME Bank competitors and assessment
Company assessmentDirect peers
- Bank Simpanan Nasional (BSN): Malaysian government-owned savings bank with 387 branches and a strong MSME/personal banking franchise. Directly comparable as another state-owned retail/SME financial institution in Malaysia; explicitly partnered with SME Bank to complement its own limited 17-branch network.
- Agrobank: Malaysian development finance institution focused on agriculture and food security financing. Peer because it is another DFI under the Ministry of Finance serving a specific underserved economic segment with mandate-driven funding.
- Bank Pembangunan Malaysia Berhad (BPMB): SME Bank's parent company and Malaysia's strategic development bank coordinating an integrated DFI platform with EXIM Bank. Directly comparable as the umbrella entity governing SME Bank's strategic initiatives under National Budget 2026 (RM9 billion+ in mandates).
- Export-Import Bank of Malaysia Berhad (EXIM Bank): Sister subsidiary of SME Bank under BPMB Group, providing trade and export finance. Directly comparable as a sibling DFI in the integrated development finance platform; co-delivers programmes such as iTEKAD ISHRAF and BizConnect with Exporters.
- Bank Rakyat: Malaysian cooperative bank with significant MSME and personal financing focus. Peer as a Malaysian institution serving similar SME/micro segments with comparable Shariah-compliant and conventional product mix.
- Bank Islam Malaysia Berhad: Malaysia's flagship Islamic commercial bank. Peer because it shares SME Bank's Shariah-compliant DNA, serves similar MSME/mid-market customers, and is explicitly listed as a strategic partner for the iTEKAD ISHRAF 4.0 programme.
- MBSB Bank: Malaysian Islamic bank with SME and consumer financing focus. Comparable as a Shariah-compliant Malaysian lender serving similar MSME segments; also a strategic partner for iTEKAD ISHRAF crowd-in contributions.
Emerging players
- MARA (Majlis Amanah Rakyat): Malaysian government agency driving Bumiputera entrepreneurship via grants, financing, and training. Comparable as a state-owned development institution serving the same Bumiputera MSME segment targeted by SME Bank's Jaguh Serantau and related programmes.
- Perbadanan Nasional Berhad (PERNAS): Malaysian government agency driving franchise development and Bumiputera commercial participation. Comparable as a state-owned development partner; actively collaborating with SME Bank on ISHRAF (+) Plus for market linkage and franchise-based business development.
Broad incumbents
- Maybank SME Banking: Malaysian incumbent bank's SME division. Comparable as a major Malaysian commercial bank serving the same MSME customer base, but operating as a much larger incumbent rather than a specialised DFI.
Market position
Strengths5 records
Weaknesses5 records
Competitive moat5 records
Key risks6 records
Key highlights8 records
Customer concentration
SME Bank social profiles
Digital presenceSME Bank compliance and trust
Trust signalCompliance2 records
SME Bank financial estimates
Financial estimateRevenue estimate
Valuation estimate
SME Bank leadership team
Management profileNumber of profiles
Profiles3 records
SME Bank subsidiaries and ownership
Company hierarchySubsidiaries2 records
SME Bank funding detail
Funding detailFunding overview
Funding rounds
Investors
Funding detail is available on the Subscription and Enterprise plan.Contact sales →
SME Bank M&A and investment
M&A and investmentM&A
Investments
M&A and investment is available on the Subscription and Enterprise plan.Contact sales →
Frequently asked questions about SME Bank
What does SME Bank do?
SME Bank is a development finance institution providing Shariah-compliant financing facilities to Malaysian micro, small, and medium enterprises (MSMEs). Its product portfolio includes term financing, working capital, contract financing, revolving credit, bank guarantees, and letters of credit, alongside specialised programmes for women, Bumiputera, Chinese, Indian, and asnaf entrepreneurs. Beyond financing, the bank delivers capacity building, training, export facilitation, and Islamic social finance support to strengthen MSME resilience.
Is SME Bank a public or private company?
SME Bank is a private company. It is classified as state government owned and is currently operating.
When was SME Bank founded?
SME Bank was founded in 2005. It employs 501 to 1,000 people.
Where is SME Bank based?
SME Bank is headquartered in Kuala Lumpur, Malaysia, in the Asia region.
How does SME Bank make money?
Two revenue lines are on record. Financing Activities are the primary driver. The others are beyond Financing Services.
Who are SME Bank's main competitors?
Direct peers on record are Bank Simpanan Nasional (BSN), Agrobank, Bank Pembangunan Malaysia Berhad (BPMB), Export-Import Bank of Malaysia Berhad (EXIM Bank), Bank Rakyat, Bank Islam Malaysia Berhad and MBSB Bank. Emerging players are MARA (Majlis Amanah Rakyat) and Perbadanan Nasional Berhad (PERNAS). Maybank SME Banking is listed as a broad incumbent.
Does SME Bank have an API?
No public API is recorded for SME Bank.
What industry is SME Bank in?
SME Bank's product category is Development Finance / MSME Banking. Its primary akta.pro industry code is FSABABAA, General SME & Middle-Market Commercial Banking, with a secondary code of FSABAGAB, Islamic SME & Commercial Banking. Its NAICS code is 522110 and its SIC code is 6159.