The Idea Bank is a compilation of selected feedback by the public received through PEMUDAH Website which might be useful for information and reference purposes. The compilation includes complaints, inquiries and suggestions addressed to various Government Agencies which have been appropriately edited for general viewing.

Please also be informed that the information, relevant acts, rules and procedures provided therein may have been reviewed, revised or updated by the respective Government Agencies. You may want to visit the relevant websites for information or submit your inquiries through our  Feedback Form.



Is it possible for a foreign bank to set up a representative office that does not engage in any trading (including import and export), business or any form of commercial activity in Malaysia. If yes, what are the procedures? If no, is there some other ways for a foreign bank to set up branch or subsidiaries in Malaysia.



Under section 20 (1) of the Banking and Financial Institutions Act 1989 (BAFIA), no person set up a representative office in Malaysia unless it has first obtained Bank Negara Malaysia(BNM)’s approval and has complied with the requirements of section 21(1) BAFIA; and has obtained a written acknowledgement from Bank Negara Malaysia(BNM) in respect of such compliance. As such, you may write to the following for the written acknowledgement –

Pentadbiran Pengawalan dan Penyeliaan
8B, Bank Negara Malaysia,
Jalan Dato Onn,

50480 Kuala Lumpur
Tel: 03 2698 8044
Fax:03 2694 0227



I’m helping my wife to register a new company through SSM e-lodgement. It is a good initiative. I can save time and do it after office hours. I’m not able to go to SSM office during weekdays. However I made a mistake on the TARIKH MULA BERNIAGA where I entered 2008 instead of 2009. The system didn’t reject but put it on hold for enquiry, I understand about it. However I need to go to SSM office to resolve this small matter which defeats the original purpose I apply it through ONLINE.



The application for business registration is under query due to the fact that the application does not comply with the provision of Section 5 (1) of the Business Registration Act 1956 (ROBA).

SSM’s record shows that your wife, has made an application to register a business via e-lodgement on 19 March 2009. The application was queried for verification as the commencement date of the business was recorded as 19 March 2008 instead of 19 March 2009 in Form A (Business Registration).

For your information, the business commencement date is one of the important data need to be disclosed in Form A.  Pursuant to section 5 (1) of ROBA 1956, the person responsible for a business shall, not later than thirty days from the date of the commencement of business, apply to the Registrar for registration of the business. Failure to comply with the requirement is an offence under the ROBA.

The commencement date of business must be stated correctly by the owner. Once the application is queried, the owner need to verify and confirm the business commencement date by visiting the nearest SSM’s counter before the application can be processed.
If there is a mistake in entering the business commencement date, a new Form A need to be lodged over the counter without any payment for application fee being charged. Since you are unable to visit the nearest SSM”s counter, you are advised to re-register the business on-line. In this case, the registration fee amounting to RM60 (sole proprietorship using trade name) will be charged to your account and SSM will refund the fee for the unsuccessfull application in due course.



I am the Director of a small, but successful Corporate Responsibility consultancy employing 2 Malaysian staff. I am keen to expand and take on additional staff in Malaysia, but this cannot be done without my physical presence on a daily basis, to ensure that staff develop the necessary skills and knowledge. With the new paid-up capital requirement of RM500K, it is simply not feasible to apply for a work permit, so will have to expand in Singapore instead. How does this help Malaysia?



We apologize above delay replying your email.

For information, effective 01 Jan 2009, our new policy to get approval of employment of expatriate through Expatriate Committee for the company is 100% with foreign equity was increase to RM500,000.

The policy to increase minimum paid up capital was authorized by Home Ministry. All applicants must abide the rules and regulations Expatriate commitee pertaining to the application employment of expatriate.

To find more information about Registration for foreign company, please visit

Feedback or I was informed to register at Public Service Portal prior to making changes in my business details with SSM. Have completed registration at but said service not available. Browse and was redirected to to register again? It is inconvenient.


For your informations eLodgment services for SSM in myGovernment Portal was launched on 7th May 2009 at 4.00 pm. The transaction that was done on 4th May 2009 whereby the services was temporary deactivated from myGovernment Portal from 28th April 2009 to 7th May 2009 due to migration exercise from to

The announcement regarding   this exercise has been place in both myGovernment Portal since 27 April 2009. We are very sorry for your inconveniance.


Can company name be changed without changing the MOF registration or if a new registration is required?



  • On the change of company name, a company incorporated under the Companies Act 1965 (“CA”) may change its name pursuant to the provisions of Section 23 of the CA.
  • A business registered under the Registration of Business Act 1956 (“ROBA”) cannot change its name as there is no specific provision under the ROBA allowing for a change of name to be made.
  • A business owner should also take note that after 12 months from the date of expiry of the registration for a business, renewal of registration may be allowed with the same name but a new business registration number will be assigned. In cases of change in company names, the documents reflecting the change may then be sent to the Ministry of Finance as proof for the change of name.
  • However, SSM is embarking on a holistic review of the “ROBA” which will include a provision to enable the change of name


In 9th Malaysian Plan, agriculture is the 3rd engine of economic growth. Currently, there is no mechanism that “force” the farmers to register with any authority. Anyone who wants to plant something can do so as he wish. The problems arises when too many/little agriculture products in the market. The prices fluctuates so rapidly. My suggestion: the government should introduce a mechanism that ‘forces’ all farmers to register (type of crops, hectarage, etc) – to have an effective marketing plan.


In the market-driven agro-food industry, the market forces will be the best mechanism to decide what to grow.   A glut will depress the prices while a shortage will increase the price the farmers will receive.
2.   The issue of too many / little agriculture products is also related to lack of good agriculture land for agro-food.   Out of 6.3 million hectare, 87% is cultivated with palm oil, rubber and cocoa.

We are currently looking into one mechanism to register farmers but it is not for marketing but for traceability of products.

Question 1 :
What are the financial assistance and consultation services available to start a small business?
Reply :
Three (3) agencies under the Ministry of Entrepreneur and Cooperative Development (MeCD) ( ) provide
financial assistance for entrepreneurs. They are Majlis Amanah Rakyat (MARA), TEKUN Nasional and SME Bank.
The schemes available under TEKUN Nasional , among others, are:
  • TEKUN Tunas;
  • TEKUN Niaga;
  • TEKUN Jangka Pendek;
  • TEKUN Tani; and
  • TEKUN Ternak
The schemes available under MARA , among others, are:
  • Pembiayaan Am;
  • Pembiayaan Pewujudan Usahawan;
  • Pembiayaan Mini Market; and
  • Pembiayaan Kontrak.
The agencies can be contacted for further details and consultation:
  • MARATelephone :
    Bahagian Pembiayaan
    03-2691 5111
    Website :
    Telefon : 03-9058 8550 / 9058 8999
    Email :
    Website :
  • SME BankTelephone :
    03-2615 2020/2828 ( Pusat Khidmat Nasihat SME Bank)
    Website :
SMIDEC, one of the agencies under Ministry of International Trade and Industry (MITI) provide grants and soft Loans to SMEs.
  • Matching Grant for Business Start-ups
  • Matching Grant for Product and Process Improvement
  • Matching Grant for Certification and Quality Management System
  • Matching Grant for Enhancing Product Packaging
  • Matching Grant for Development and Promotion of Halal Product
  • Grant for RossettaNet
  • Grant – Loan facility
  • Grant for Enhancing Marketing Skills of SMEs
Soft Loans
  • Soft Loan Scheme For Factory Relocation
  • Soft Loan For SMEs
  • Soft Loan For ICT Adoption
For further details and information, SMIDEC Infoline can be contacted at 1-300-88-1801.


What assistance can one seek to start an animal farming project/business?


TEKUN National provides financial assistance for live stock projects through the TEKUN TERNAK scheme.
Assistance offered is for start-up, business expansion, and financial assistance in live stock projects. Among the projects include
the rearing of cows, goats, quill, fresh water fish and shrimp.
Total funding of assistance granted depends on the need of the project between RM500- RM50,000.
Basic Requirements :
  • Bumiputera aged between 18 – 60 years;
  • Possess a valid business licence/permit/registered business and involved directly and on a full-time basis in the
  • One funding per household;
  • Existing financial aid not exceeding RM20,000; and
  • Possess own/rented land or collaboration project with Youth Societies/ Government agencies or NGOs.
Additional Requirements :
  • One guarantor;
  • 10-15% of the entire project/business cost to be contributed by the applicant; and
  • Project base to be located close to a TEKUN operation center.
Sponsorship Duration and Pay Back Method
The pay-back duration will take into consideration the time required for the project to bear result (maximum 5 years). Repayment
is based on a grace-period whereby the entrepreneur can choose to pay on a weekly, monthly or seasonal basis.

Inquiry on Tax Incentives for breeding Arowana Fish


I would like to start a business in breeding arowana fish. I would like to know what are the tax incentives or grants available for breeders of arowana fish (ornamental fish).
Thank you.


• With regards to tax incentive, breeding of arowana fish is a promoted activity under the Promotion of investments Act 1986 under the category of spawning, breeding and culturing of aquatic product. A company that engaged in this activity is eligible for pioneer status or investment tax allowance.The details and the conditions of the incentive can be obtained from:

Malaysia Industrial Development Authority (MIDA),
BLock 4, Plaza Sentral,
Jalan Stesen Sentral 5,
Kuala Lumpur Sentral, 509470 Kuala Lumpur.

• Another incentive available for this activity is deduction of allowance under the Income Tax (Allowance for Increased Export) Rules 1999 [P.U.(A) 128/1999] which reduce the statutory income of a business. The amount of allowance to be deducted is equivalent to 10% of the value of increased export and shall not exceed 70% of statutory income each year of assessment. Any unabsorbed amount can be carried forward until fully utilized.
The Income Tax Rules can be obtained from Percetakan Negara Malaysia.

Thank you.

Noraini binti Ismail,
Tax Policy Department.

Item Jenis Dana


Bank Pembangunan Malaysia Berhad (16562-K) – BPMB
Group Strategic Planning
Level 25, Menara Bank Pembangunan
Bandar Wawasan
No 1016, Jalan Sultan Ismail
50250 Kuala Lumpur

Tel: 03-2611 3873
Fax: 03-2698 6701

1. Purpose Bumiputera (UMB) in medium sized companies through equity investments.
2. Type of Financing/ Special Programmes
  • Graduates Franchise Programme
    • Provision of intensive training and financing to prospective franchisee amongst graduates.
    • Not more than 35 years old.
  • Women Franchise Programme
    • Provision of intensive training and financing to prospective franchisee amongst women.
Financing /Loan Scheme
  • Financing Scheme for Franchisee
    • Purpose is to provide loans to Bumiputera franchisee to start or to expand their businesses.
    • Loan limits from RM 20,000 to RM 500,000
    • Annual interest at 4%.
    • Financial Margin up to 80% from overall cost project.
  • Financing Scheme for Franchisor
    • Purpose to provide loan to Bumiputera franchisor to start and expand their businesses.
    • Loan limits between RM 50,000 to RM 2 million.
    • Maximum financing period is 10 years.
    • Interest rate is 6 – 8% per year depending on eligibility.
  • Executive Franchise Scheme
    • Purpose to assist Bumiputera in civil and private sectors to be involved in franchise business.
    • Loan limits between RM50, 000 to RM 1million.
    • Financing margin is up to 80% from project costs.
    • Annual interest rate at 6 %.
    • Financing period up to 5 (five) years.
  • Youth Franchise Scheme
    • Intended to help Bumiputera youths to participate in franchise business.
    • Loan limit of RM 20,000 to  RM 500,000.
    • Financing Margin up to 90% from project costs.
    • Interest rate at 6% per year.
    • Financing period up to 5 (five) years.
  • Pre-Franchise Loan
    • To help prospective Bumiputera franchisors by providing financing for purpose of business capital or expansion.
    • Loan limit of RM 50,000 to RM 2 million.
    • Interest rate: 6% per year.
    • Financing period: Up to 10 (ten) years.
    • Financing margin depending on 4 (four) times gearing ratio.
Investment Scheme
  • Mid Franchise Scheme
    • Purposed to help franchise businesses owned by Bumiputeras that need financing for expansion purpose.
    • Maximum Equity Financing is RM 5 million.
  • Potential Franchise Scheme
    • Purposed for Bumiputera companies that are franchisors/ new main franchisee or intend to change their business to franchise business.
    • Maximum equity financing is RM 5Million.
    • Maximum investment size is 49% of equities held in the form of ordinary shares and maximum overall investment of RM 5 Million.
  • Smart Sharing Franchise Scheme
    • Purposed to help Mid Bumiputera Entrepreneurs (UMB) to own equity in a non-Bumi company and to create collaboration opportunities between non-Bumi companies and PNS to obtain financing for business expansion purpose.
    • Maximum equity financing of RM 10 Million.
Pelaburan Ekuiti
  • Pelaburan dalam Syarikat-Syarikat Pra-Tawaran Awam Permulaan
    • Bertujuan membantu penyertaan Usahawan Menengah Bumiputera (UMB) untuk meningkatkan ekuiti dalam industri komersial / perusahaan saiz sederhana yang kukuh milik bukan Bumiputera.
    • Had pembiayaan ekuiti maksimum RM 10 juta
  • SPelaburan dalam Syarikat Pertengahan
    • Bertujuan menyediakan kemudahan pembiayaan bagi mengembangkan perniagaan syarikat-syarikat sasaran dan perusahaan kecil dan sederhana (SME)
    • Membantu syarikat memenuhi syarat untuk disenaraikan di Bursa Malaysia dalam tempoh 2 hingga 5 tahun.
    • Had pembiayaan ekuiti maksimum RM 5 juta
  • Pelaburan dalam Syarikat yang disenaraikan
    • Bertujuan untuk pelaburan dalam syarikat yang disenaraikan di Papan Kedua / MESDAQ yang berpotensi dipindahkan ke Papan Utama.
    • Had pembiayaan ekuiti maksimum RM 10 juta
  • Syarikat Senaraian Luar Negara
    • Bertujuan untuk pelaburan dalam syarikat yang akan disenaraikan di Luar Negara.
    • Had pembiayaan ekuiti maksimum RM 10 juta
  • Development of Local Franchise Product Programme.
    • For Bumiputera new franchise product development.
    • Grant for financing of consultancy fee for prospective franchisor companies.
  • Franchise Development Aid Scheme
    • Grant incentive to Bumiputera and non Bumiputera franchaisors.
    • Maximum is RM 100,000 for each business or franchise product.
3. Further Info Managing Director
Perbadanan Nasional Berhad (PNS )
Aras 9B, Menara Dato Onn
Putra World Trade Centre
45, Jalan Tun Ismail
50480 Kuala Lumpur
Tel .No : 03-2698 6670
 Fax No : 03-2698 6617
Website :
No Types of Financing
Summary of Terms & Conditions
1. Biotechnology Entrepreneurship Programme
  • Interest rate charged at 4.0% – 6.0% a year.
  • Maximum 10 years
  • Facilities limit of RM30,000 – RM5.0 million
  • Financing for land, factory building, improvements, machineries & equipments, rolling working capital/fixed, technology transfer cost.
  • Conventional/syariah facilities.
2. Encouraging Bumiputera Participation in Strategic Services Sector
  • Interest rate at 4.0% – 6.0% a year.
  • Maximum of 10 years
  • Facilities limit of RM30,000 – RM5.0 million
  • Machineries & equipments financing, rolling  working capital/fixed, vehicles
  • Syariah facilities only.
3. Third Window Financing Scheme
  • Interest rate at 4.0% – 6.0% a year.
  • Maximum 10 years
  • Facilities limit of RM 30,000-RM 5.0million.
  • Financing of land, factory building, improvements, machineries & equipments, rolling working capital/fixed, technology transfer cost.
  • Syariah facilities only.
4. Craft Entrepreneur Development Programme
  • Interest rate at 4.0% – 6.0% per year.
  • Maximum of 10 years
  • Facilities limit of RM30,000 – RM5.0 million
  • Fixed Asset Financing and Project work capital.
  • Conventional/syariah facilities only
5. Vendor Programme (SmartBiz) )
  • Interest rate at 4.0% – 6.0% per year.
  • Maximum of 10 years
  • Facilities limit of RM30,000 – RM5.0 million
  • Financing of Land, factory building, improvements, machineries & equipments, rolling working capital/fixed.
  • Conventional/syariah facilities.
6. Graduate Entrepreneur Fund
  • Interest rate at 4.0% per year.
  • Maximum of 10 years.
  • Facilities limit RM 20,000 – RM 250,000.
  • Financing of fixed assets and project work costs.
7. Programme for Government Offices Maintenance Contractors
  • Interest rate at 4.0% – 6.0% per year.
  • Maximum of 10 years
  • Facilities limit of RM30,000 – RM5.0 million
  • Financing of Land, factory building, improvements, machineries & equipments, rolling working capital/fixed.
  • Conventional/syariah facilities
8. Entrepeneur Development Programme in Outsourcing Services
  • Interest rate at 4.0% – 6.0% per year.
  • Maximum of 10 years
  • Facilities limit of RM30,000 – RM5.0 million
  • Financing of Land, factory building, improvements, machineries & equipments, rolling working capital/fixed.
  • Conventional/syariah facilities
9. Halal Hub Programme
  • Interest rate at 4.0% – 6.0% per year.
  • Maximum of 10 years
  • Facilities limit of RM30,000 – RM5.0 million
  • Financing of Land, factory building, improvements, machineries & equipments, rolling working capital/fixed, halal certification cost, export related cost, promotion costs for export market.
  • Syariah facility only
10. Agro-Based Entrepreneurship Programme
  • Interest rate at 4.0% – 6.0% per year.
  • Maximum of 10 years
  • Facilities limit of RM30,000 – RM5.0 million
  • Financing of Land, factory building, improvements, machineries & equipments, rolling working capital/fixed.
  • Syariah facility only
11. Special Tourism Fund ( SFT2)
  • Interest rate at 4.0% – 5.5% per year.
  • Maximum financing period of 20 years
  • Maximum financing 90% of project cost or up to RM 25 million.
  • Refinancing of all tourism related small and medium project, hotel construction and Bumiputera business  purchases including hotels.
12. Terengganu State Entrepreneur’s Fund Objective: To develop Terengganu entrepreneurs.

  • Maximum financing period of 3-10 years.
  • Minimum financing of  RM20,000
  • Maximum financing of  RM500,000
  • Sector: manufacturing, services, franchise and vendor projects, trading, Terengganu goods production, construction and processing of agro products.
13. Public Transportation Development Fund (TPPA)
  • Objective: To provide a financing facility specific for public transportation services providers , commercial buses and taxis throughout Malaysia with  flexible repayment  terms and conditions at an interest of  4.0% a year.
  • Minimum financing of RM 30,000
  • Maximum financing of RM 10.0 million.
    • Taxi/ Car Rental : Maximum 5 years or remaining years of vehicle’s life span, whichever is shorter.
    • Bus: Maximum of 10 years except for express buses, which is 8 years or remaining years of vehicle’s life span whichever is lower.
14. Further Info Managing Director
SME Bank
Level 22, Menara SME Bank
Jalan Sultan Ismail
50774 Kuala LumpurTel. No: 03-26152020
Fax No. : 03-26914395
Website :
Item Products
Further Info:

Pejabat  Ketua Pengarah MARA
Tingkat 26, Ibu Pejabat MARA
21, Jalan Raja Laut
50609 Kuala Lumpur.

Tel : 03-26132000

Website :

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Last Updated: 16 January 2017