SME Loan Sabah 2026
Sabah, Malaysia's second-largest state, has a unique business landscape spanning tourism, agriculture, oil & gas, and timber industries. Here's your guide to SME financing options specifically for Sabah-based businesses.
Quick Facts
Pro Tip
Sabah businesses should leverage both federal programs and state-level support from SEDCO (Sabah Economic Development Corporation). Combining these can maximize your financing options.
Banks with Strong Sabah Presence
Major Banks in Sabah
| Bank | Sabah Branches | Key Locations | Contact |
|---|---|---|---|
| Maybank | 25+ branches | KK, Sandakan, Tawau | 1300 88 6688 |
| CIMB | 15+ branches | KK City, Labuan | 1300 880 900 |
| Public Bank | 12+ branches | KK, Sandakan | 1800 22 9999 |
| RHB | 10+ branches | KK, Tawau | 1300 88 1888 |
| Alliance Bank | 6+ branches | KK, Sandakan | 03-2604 3333 |
| BSN | 15+ branches | Throughout Sabah | 1300 88 1900 |
Local/Regional Banks
| Bank | Presence | Strength |
|---|---|---|
| Bank Simpanan Nasional | Strong | Microfinancing, government schemes |
| Bank Rakyat | Moderate | Islamic financing |
| Agrobank | Strong | Agriculture sector |
Pro Tip
BSN and Agrobank have particularly strong presence in rural Sabah, making them accessible for businesses outside major towns.
Key Industries in Sabah
Tourism & Hospitality
Sabah is a major tourism destination:
| Tourism Segment | Financing Options |
|---|---|
| Eco-tourism/lodges | Green financing, GTFS |
| Hotels/resorts | Property financing, SME Bank |
| Dive operators | Equipment financing, TEKUN |
| Tour agencies | Working capital, P2P |
Key Tourism Areas:
- Kota Kinabalu (city tourism, island hopping)
- Kundasang (Mount Kinabalu tourism)
- Sipadan/Semporna (diving tourism)
- Kinabatangan (wildlife tourism)
Agriculture & Palm Oil
Sabah is Malaysia's largest palm oil producing state:
| Agricultural Sector | Best Financing |
|---|---|
| Palm oil smallholders | Agrobank, FELDA schemes |
| Vegetable farming | Agrobank, TEKUN |
| Aquaculture/fishing | Agrobank, LKIM schemes |
| Livestock | Agrobank, government programs |
Oil & Gas Services
Labuan and Sabah serve as O&G support hubs:
| O&G Activity | Financing Options |
|---|---|
| O&G services | GGSM2 bank loans |
| Equipment supply | Asset-based financing |
| Logistics | Working capital, trade finance |
Timber & Forestry
| Timber Activity | Financing Options |
|---|---|
| Timber processing | GGSM2, Agrobank |
| Furniture manufacturing | SME Bank, bank loans |
| Plantation forestry | Agrobank |
State Government Resources
SEDCO (Sabah Economic Development Corporation)
Services for SMEs:
- Business advisory
- Financing facilitation
- Market access support
- Industrial land/premises
Contact: SEDCO Building, Kota Kinabalu
TEKUN Sabah
Multiple offices across Sabah:
| Location | Coverage |
|---|---|
| Kota Kinabalu | West Coast |
| Sandakan | East Coast |
| Tawau | Southeast |
| Keningau | Interior |
TEKUN Sabah Eligibility
- Bumiputera Malaysian citizen
- Business in Sabah
- SSM registered
- Age 18-60 years
- Viable business plan
Ministry of Industrial Development Sabah
Services:
- Investment facilitation
- Industrial development support
- SME development programs
Sabah-Specific Financing Opportunities
Rural Business Financing
For businesses outside major towns:
| Program | Coverage |
|---|---|
| BSN Microfinancing | Rural areas |
| Agrobank | Agricultural districts |
| TEKUN | Interior Sabah |
| AIM | Rural women entrepreneurs |
Native Entrepreneur Programs
Special programs for Sabah native entrepreneurs:
| Program | Target |
|---|---|
| MARA Sabah | Bumiputera businesses |
| SEDCO Programs | Sabah native entrepreneurs |
| TEKUN | Bumiputera SMEs |
Labuan IBFC Opportunities
For businesses in Labuan:
| Opportunity | Details |
|---|---|
| Tax incentives | Labuan tax structures |
| International banking | Global financial services |
| Trading companies | Lower tax rates |
Industry-Specific Financing
For Tourism Businesses
Tourism Financing Options
- SME Bank tourism programs
- GGSM2 for working capital
- Green financing for eco-tourism
- Equipment financing for boats/vehicles
- Property financing for lodges
For Agricultural Businesses
Agri Financing Options
- Agrobank (primary choice)
- TEKUN for smaller farmers
- FELDA schemes (palm oil)
- LKIM (fisheries)
- GGSM2 for processing facilities
For Oil & Gas Services
O&G Financing Options
- GGSM2 bank loans
- Trade financing for equipment imports
- Working capital for contracts
- Invoice financing against O&G receivables
Comparing Major Sabah Cities
| Factor | Kota Kinabalu | Sandakan | Tawau |
|---|---|---|---|
| Economy Focus | Tourism, services | Fisheries, timber | Agriculture, trade |
| Bank Presence | Highest | Moderate | Moderate |
| Government Offices | Most accessible | Available | Available |
| Key Industries | Hospitality, retail | Processing, fisheries | Palm oil, cocoa |
Cross-Border Trade Financing
Sabah businesses often trade with:
Philippines (Mindanao)
- Barter trade financing
- Export credit insurance
Indonesia (Kalimantan)
- Cross-border trade facilities
- Regional trade financing
Brunei
- Trade credit
- Export financing
Challenges and Solutions for Sabah SMEs
Geographic Distance
Challenge: Distance from Peninsular Malaysia affects access to financing
Solutions:
- Use local bank branches with SME focus
- Apply through GGSM2 (available at all participating banks)
- Leverage SEDCO for facilitation
- Consider P2P platforms (geography-agnostic)
Limited Collateral in Rural Areas
Challenge: Rural property may have lower valuations
Solutions:
- TEKUN requires no collateral
- GGSM2 reduces collateral requirements
- Agrobank accepts agricultural assets
- Government guarantee programs
Seasonal Business (Tourism)
Challenge: Tourism business can be seasonal
Solutions:
- Build working capital buffer
- Revenue-based financing
- Flexible repayment structures
- Diversify into domestic tourism
Tips for Sabah Loan Applications
Strengthen Your Application
- Highlight connection to key Sabah industries
- Document tourism licenses and permits
- Show seasonal revenue patterns (if tourism)
- Include any SEDCO or state program participation
- Note export potential (cross-border trade)
- Demonstrate understanding of local market
GGSM2 Access in Sabah
All 20 participating banks have Sabah presence. Recommended for Sabah SMEs:
| Bank | Strength in Sabah |
|---|---|
| Maybank | Largest network |
| CIMB | Strong SME focus |
| BSN | Rural accessibility |
| Agrobank | Agriculture expertise |
Alternative Financing in Sabah
P2P Lenders
All national platforms serve Sabah:
- Funding Societies
- Fundaztic
- Validus
Microfinancing
- TEKUN Sabah
- Amanah Ikhtiar Malaysia
- BSN micro schemes
Frequently Asked Questions
Frequently Asked Questions
Get Financing for Your Sabah Business
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.
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