Funding Societies secures new financing facility from Malaysia Debt Ventures to deepen SME financing reach in Malaysia

Funding Societies secures new financing facility from Malaysia Debt Ventures to deepen SME financing reach in Malaysia

Funding Societies has secured a multi-year working capital financing facility from Malaysia Debt Ventures Bhd (MDV), a subsidiary of the Minister of Finance (Incorporated) [MOF Inc], to expand financing for technology-driven and underserved Malaysian SMEs through its platform.

The facility builds on a partnership between the two organisations that began in 2022, when MDV first participated on the platform to support Malaysia's technology-based SMEs.

Chai Kien Poon, country head of Funding Societies Malaysia, said: "Financing a platform is a multiplier. One facility from MDV reaches thousands of businesses instead of one at a time. For MDV, that is development financing doing what it is meant to do at the scale and speed Malaysia's SME economy actually needs.

"MDV has backed us since 2022, and we are grateful for that continued support. This facility marks the next step in a long-term partnership."

The financing supports MDV's mandate to grow Malaysia's technology-based companies through flexible and specialised financing solutions, while extending Funding Societies' digital, alternative-data-driven financing to SMEs at a critical stage of their growth. The initiative also supports Malaysia's New Industrial Master Plan 2030 by helping businesses move up the value chain and progress towards mid-tier company status.

Digital SME financing makes it possible to reach underserved SMEs at scale by leveraging alternative data, enabling faster turnaround times and reducing the cost of serving each financing account compared with conventional credit assessment.

SMEs account for 96.1% of business establishments in Malaysia, contribute close to 39% of gross domestic product and employ roughly half of the national workforce. Supporting a platform that can extend financing across this broad segment has the potential to generate wider economic impact through business growth, job creation and higher incomes, beyond providing credit access to individual SMEs.

To date, Funding Societies has disbursed close to US$1.8 billion (RM7 billion) in financing to more than 10,000 businesses in Malaysia, while MDV has approved over US$3.5 billion (RM14 billion) in financing for more than 1,184 technology projects across various high-impact sectors since its establishment in 2002.

Sharul Sazman Samaan, chief business officer of MDV, said: "MDV's continued partnership with Funding Societies reflects our confidence in the role of fintech platforms in widening financing access for technology-based SMEs.

"By supporting an established platform with strong reach and digital financing capabilities, we can channel development financing more efficiently to businesses with smaller, faster-moving financing needs. Through this facility, MDV aims to extend the reach of its financing support while helping more SMEs access the capital they need to grow and contribute to Malaysia's economy."

The facility extends the partnership between MDV and Funding Societies and reflects both organisations' shared commitment to strengthening Malaysia's SME financing ecosystem by combining institutional funding with digital platform capabilities.

Both organisations will continue exploring opportunities to support the financing needs of technology-based and growth-oriented SMEs across Malaysia.