MADANI Loan for Chinese Entrepreneurs Malaysia 2026
Yes, Chinese Malaysian entrepreneurs can apply for the MADANI loan (GGSM). The scheme is open to all Malaysian-owned businesses with at least 51% shares held by Malaysian citizens — regardless of race. If you're a Chinese Malaysian business owner, you qualify for GGSM just like any other Malaysian entrepreneur.
But MADANI/GGSM is just one option. In 2026, Chinese entrepreneurs have access to more dedicated financing than ever before — including the brand-new CapBay BERKAT programme at just 3% interest and TEKUN's first-ever Chinese PMKS scheme worth RM50 million.
Disclaimer: Interest rates, loan amounts, and eligibility requirements shown are indicative and subject to change. Contact the respective bank or institution directly for the latest rates and terms. Last reviewed: January 2026.
Quick Overview: Every Option for Chinese Entrepreneurs
| Programme | Amount | Rate | Deadline | Key Feature |
|---|---|---|---|---|
| CapBay BERKAT 🔥 | RM5,000 – RM30,000 | 3% p.a. (9% govt rebate) | 9-28 Feb 2026 | Lowest rate, apply now |
| TEKUN Chinese PMKS | TBA (up to RM100k expected) | ~4% flat | 2026 allocation | New RM50M dedicated fund |
| GGSM (MADANI) | Up to RM20 million | BLR + 2% max | Until funds exhausted | 80% government guarantee |
| WCGS schemes | Up to RM10 million | Bank rates | Ongoing | Working capital guarantee |
| CGC BizJamin | Up to RM5 million | Bank rates | Ongoing | Credit guarantee |
| Bank SME loans | Up to RM5 million | From 4.5% p.a. | Anytime | No racial restriction |
| P2P platforms | Up to RM1 million | 10-18% p.a. | Anytime | Fast approval |
🔥 CapBay BERKAT: Apply Now (Closing 28 Feb 2026)
The Special Financing Programme for Chinese-Owned Micro Enterprises (BERKAT) is the newest and most affordable financing option for Chinese entrepreneurs. Launched on 5 February 2026 by KUSKOP Minister Steven Sim, this programme offers:
| Detail | BERKAT 2026 |
|---|---|
| Full name | Program Pembiayaan Khas Untuk Perusahaan Milikan Cina |
| Managed by | SME Corp Malaysia via CapBay (P2P platform) |
| Allocation | RM30 million |
| Amount | RM5,000 – RM30,000 |
| Interest rate | 3% p.a. (government rebate of 9% on actual 12% rate) |
| Tenure | 6 – 24 months |
| Collateral | Not required |
| Application period | 9 February – 28 February 2026 (or until funds exhausted) |
| Approval speed | Within 1 week |
| Expected beneficiaries | ~1,000 entrepreneurs |
BERKAT Eligibility
| Requirement | Details |
|---|---|
| Ownership | At least 51% owned by Chinese Malaysian citizens |
| Business type | Micro or Small Enterprise registered with SSM |
| Operation period | At least 6-12 months |
| Sectors | All sectors except primary agriculture, finance, insurance, real estate, securities trading |
| Credit record | No adverse CCRIS record |
| Priority | High-growth industries, B40/M40 entrepreneurs |
How to Apply for BERKAT
- Visit capbay.com/smecorp-berkat
- Click "Apply Now"
- Fill in basic business information and financing amount needed
- Upload documents:
- MyKad (front & back) of all shareholders/directors
- SSM business registration
- 6 months bank statements (PDF from internet banking preferred)
- Company stamp
- CapBay's AI credit model assesses your application
- Approval within 5-7 working days
- Funds disbursed within 2 days after approval
⚠️ Time-sensitive: Applications close 28 February 2026 or when the RM30M is fully utilised — whichever comes first. The 2025 round was fully subscribed. Apply immediately if eligible.
How the 3% Rate Works
The actual CapBay P2P rate is approximately 12% p.a. However, the government provides a 9% rebate through SME Corp, bringing your net cost down to just 3%:
| Component | Rate |
|---|---|
| CapBay P2P rate | ~12% p.a. |
| Government rebate (SME Corp) | -9% p.a. |
| Your cost | 3% p.a. |
The rebate is handled directly between SME Corp and CapBay — you simply pay 3%.
TEKUN Chinese PMKS Scheme (New 2026)
For the first time in TEKUN's history, a dedicated RM50 million financing scheme for Chinese-owned micro and small enterprises was announced by KUSKOP Minister Steven Sim in December 2025.
| Detail | TEKUN Chinese PMKS 2026 |
|---|---|
| Allocation | RM50 million (brand new for 2026) |
| Managed by | TEKUN Nasional |
| Expected amount | Up to RM100,000 (based on standard TEKUN limits) |
| Expected rate | ~4% flat (based on standard TEKUN rates) |
| Application | TEKUN branch offices |
Note: Full scheme details are being progressively announced by TEKUN. Contact your nearest branch at tekun.gov.my or call 03-9059 9292 for the latest eligibility and application information.
2026 TEKUN Budget — All Communities
| Community | 2025 | 2026 | Change |
|---|---|---|---|
| Bumiputera | RM300M | RM500M | +67% |
| Indian (SPUMI) | RM30M | RM50M | +67% |
| Chinese (PMKS) | — | RM50M | New |
| Total | RM330M | RM600M | +82% |
GGSM (MADANI Loan): How Chinese Entrepreneurs Qualify
The Government Guarantee Scheme MADANI is Malaysia's largest SME financing guarantee — RM20 billion total scheme limit. It is open to all Malaysians regardless of ethnicity.
GGSM Eligibility for Chinese-Owned Businesses
| Requirement | Details |
|---|---|
| Ownership | At least 51% shares held by Malaysian citizens (any ethnicity) |
| Registration | SSM-registered (sole proprietorship, partnership, LLP, or Sdn Bhd) |
| Business type | All economic sectors |
| Focus sectors | Green Economy, High Technology, Halal, Healthcare (get 90% guarantee vs 80% for others) |
| Exclusions | Public-listed companies, GLCs, state-owned enterprises, civil servants (without employer approval) |
What GGSM Gives You
| Feature | Details |
|---|---|
| Max financing | Up to RM20 million per company |
| Guarantee coverage | 80% (90% for focus sectors) |
| Facility types | Term loan, overdraft, revolving credit, trade facilities |
| Guarantee tenure | Up to 10 years (or until 31 December 2035) |
| Guarantee fee | Up to 1.0% p.a. (payable upfront) |
| Interest rate cap | Not exceeding BLR/BFR + 2% |
How to Apply for GGSM
You don't apply to SJPP directly. The process goes through your bank:
- Approach any of the 22 participating banks (Maybank, CIMB, Public Bank, RHB, Hong Leong, etc.)
- Apply for a business loan as normal
- Request the bank to submit your application under GGSM
- The bank submits the guarantee application to SJPP
- SJPP evaluates and issues the guarantee (typically 10 business days)
- Bank approves your loan with reduced collateral requirements
Key advantage: With 80% government guarantee, banks require significantly less collateral — making it possible to get RM1-5 million in financing even without property security.
Other Government Schemes Open to Chinese Entrepreneurs
| Scheme | Max Amount | Guarantee | Best For |
|---|---|---|---|
| WCGS-Startup | Up to RM10M | 70% | New businesses under 4 years |
| WCGS-Export | Up to RM10M | 80% | Export-oriented businesses |
| ADGS | Up to RM10M | 70-80% | Automation & digital adoption |
| CGC BizJamin | Up to RM5M | 70-80% | SMEs needing credit guarantee |
| CGC Portfolio Guarantee | Varies | 70% | Banks' SME portfolio |
All these schemes require 51% Malaysian ownership — not Bumiputera ownership. Chinese Malaysian entrepreneurs with majority-owned companies qualify for every one of them.
Bank Loans: No Racial Restriction
Every commercial bank in Malaysia lends to Chinese-owned businesses on exactly the same terms as any other Malaysian-owned business. There is zero racial restriction at the bank level.
| Bank | Max SME Loan | Rate From | Special Feature |
|---|---|---|---|
| Public Bank | RM5M | 4.8% p.a. | Popular with Chinese business community |
| Maybank | RM5M | 4.5% p.a. | Largest SME lender, 24hr online approval up to RM250k |
| CIMB | RM3M | 5.0% p.a. | BizChannel Express (3-5 day approval) |
| Hong Leong | RM3M | 5.2% p.a. | Strong Chinese business relationships |
| RHB | RM5M | 5.5% p.a. | Flexible requirements |
| Alliance Bank | RM3M | 5.5% p.a. | Startup-friendly (no minimum business age) |
| UOB | RM500k | 8.0% p.a. | Accepts key person experience |
Pro tip: Public Bank and Hong Leong have historically been popular with Chinese business owners due to strong branch networks in Chinese-majority commercial areas and relationship managers who speak Mandarin/Cantonese. This is not official policy — just practical observation.
Complete Financing Strategy for Chinese Entrepreneurs
Here's how to layer different financing options for maximum benefit:
Stage 1: Micro/Startup (RM5k – RM100k)
| Option | Amount | Rate | When to Use |
|---|---|---|---|
| CapBay BERKAT | RM5k – RM30k | 3% | Apply NOW (closing 28 Feb) |
| TEKUN Chinese PMKS | Up to RM100k | ~4% flat | New businesses, simple approval |
| Alliance Bank | Up to RM100k | ~5.5% | No minimum business age |
Stage 2: Growth (RM100k – RM1M)
| Option | Amount | Rate | When to Use |
|---|---|---|---|
| Bank SME loan + GGSM | Up to RM1M | BLR+2% max | 1-2 years track record |
| P2P (CapBay, Funding Societies) | Up to RM1M | 10-18% | Fast approval, no collateral |
| CGC BizJamin | Up to RM500k | Bank rates | Need credit guarantee |
Stage 3: Scale (RM1M – RM20M)
| Option | Amount | Rate | When to Use |
|---|---|---|---|
| GGSM via major bank | Up to RM20M | BLR+2% max | 80% govt guarantee |
| WCGS-Export | Up to RM10M | Bank rates | Export-oriented business |
| ADGS | Up to RM10M | Bank rates | Digital/automation investment |
| Direct bank relationship | Up to RM5M+ | Negotiated | Strong financials, property collateral |
Common Misconceptions Clarified
"MADANI loan is only for Bumiputera"
False. GGSM/MADANI requires 51% Malaysian ownership — not Bumiputera ownership. Any Malaysian citizen regardless of race (Malay, Chinese, Indian, others) can access GGSM. The scheme explicitly states "Malaysian Citizens" without ethnic qualification. Certain other schemes like PUNB and MARA are Bumiputera-specific, but GGSM is not.
"Chinese entrepreneurs have fewer government loan options"
Increasingly false. In 2026, the government allocated RM50M for TEKUN Chinese PMKS and RM30M for BERKAT — both brand-new programmes. Combined with open-to-all schemes like GGSM (RM20B), WCGS, and ADGS, Chinese entrepreneurs have access to billions in government-backed financing.
"I need to apply at a Chinese association or chamber of commerce"
Not for GGSM or bank loans. You apply directly at any participating bank. For BERKAT, you apply online at CapBay's website. For TEKUN Chinese PMKS, you apply at TEKUN branch offices. Chinese business associations (ACCCIM, etc.) can provide networking and advice but are not application channels for these government programmes.
Frequently Asked Questions
Can Chinese Malaysians apply for GGSM MADANI loan?
Yes. GGSM requires your company to be at least 51% owned by Malaysian citizens. There is no racial or ethnic restriction. Chinese, Indian, Malay, and all other Malaysian citizens qualify equally. Apply through any of the 22 participating banks.
What is the cheapest business loan for Chinese entrepreneurs in 2026?
The CapBay BERKAT programme currently offers the lowest rate at 3% p.a. (with 9% government rebate). Applications are open 9-28 February 2026 for amounts up to RM30,000. For larger amounts, GGSM through a bank offers rates capped at BLR+2%, which typically translates to 5-7% effective.
Is there a Bumiputera quota in GGSM that limits Chinese applicants?
GGSM does not have a Bumiputera quota. The scheme is open to all sectors and all Malaysian-owned businesses. However, Bumiputera-owned businesses receive enhanced guarantee coverage under certain WCGS sub-schemes (WCGS-Bumiputera offers 80% guarantee at 0.75% fee vs 70% at 1% for the general WCGS). The main GGSM scheme treats all Malaysian-owned businesses equally.
华人企业家可以申请 MADANI 贷款吗？
可以。GGSM MADANI 贷款面向所有马来西亚公民拥有至少51%股份的企业开放，不分种族。华人企业家可以通过22家参与银行申请。2026年还有专门针对华人企业的新项目：CapBay BERKAT（3%利率，RM30,000以下）和 TEKUN 华人中小企业计划（RM50 million拨款）。
Adakah usahawan Cina layak memohon pinjaman MADANI?
Ya. GGSM MADANI terbuka kepada semua syarikat milik warganegara Malaysia (sekurang-kurangnya 51% pemilikan). Tiada syarat bangsa. Usahawan Cina layak memohon melalui mana-mana bank yang mengambil bahagian. Untuk 2026, terdapat juga skim khusus: CapBay BERKAT (3% setahun) dan TEKUN PMKS Cina (peruntukan RM50 juta).
How do I know which scheme I qualify for?
Use this quick checklist:
- 51%+ Chinese Malaysian-owned? → GGSM, WCGS, ADGS, CGC, all bank loans ✅
- Micro/Small Enterprise (SSM-registered)? → CapBay BERKAT (3%) ✅
- Any business registered with SSM? → TEKUN Chinese PMKS ✅
- Need above RM1M? → GGSM via bank (up to RM20M) ✅
Apply for Business Financing
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Related Resources
- MADANI SME Loan 2026 — Full GGSM guide
- Government Loan GGSM 2026 — Government guarantee explained
- TEKUN Loan Malaysia 2026 — All TEKUN schemes
- SME Loan for New Business — Startup financing
- Best Bank for SME Loan — Bank comparison
- SME Loan for Sdn Bhd — Company financing guide
- SME Loan Calculator — Calculate your repayments
- Eligibility Checker — Check which loans you qualify for
Last verified: February 2026. Information sourced from SJPP (sjpp.com.my), CapBay (capbay.com/smecorp-berkat), KUSKOP Minister Steven Sim announcements (Dec 2025, Feb 2026), The Star, Bernama, SME Corp Malaysia. Programme terms are subject to change — verify with the respective institution before applying.