Summary
- Eligible SMEs can receive funding covering up to 90% of approved project costs, capped at RM200,000 under the Skala-IB programme.
- Businesses need Inclusive Business recognition from KUSKOP and must meet several other requirements.
- Applicants need at least RM300,000 in annual sales, five full-time employees and 60% Malaysian ownership, among other conditions.
- The money can support machinery, automation, digitalisation, working capital, branding, R&D and other approved improvements.
- Applications opened in June 2026 and remain subject to available funding.
Malaysian SMEs can now apply for up to RM200,000 in government grant support, but there is a catch.
The funding is available through the Inclusive Business Scale-Up Programme, or Skala-IB, under the Government’s wider RM205 million Program Sokongan Industri dan Perniagaan Rakyat (SINAR).
Unlike other SME grants, Skala-IB is specifically designed for businesses that incorporate lower-income or inclusive communities into their actual supply chain or business operations.
So, if you are an SME looking for RM200,000 to simply renovate your office, buy a new machine or run advertising campaigns, can you apply?
Not necessarily.
Your business first needs to fit the Government’s definition of an Inclusive Business and meet a fairly specific set of eligibility requirements.
List of Requirements
Requirement | Skala-IB Requirement |
Maximum Grant | Up to RM200,000 |
Funding Rate | Up to 90% of project cost |
Annual Sales | At least RM300,000 |
Employees | At least 5 full-time employees |
Business Structure | Sdn. Bhd. |
Malaysian Ownership | At least 60% |
Inclusive Business Recognition | Required |
Community Involvement | At least 20 participants |
MSME Status | Required |
SCORE Rating | Required or registered before final claim |
What Is the RM200,000 SME Grant?
The Program Penskalaan Perniagaan Inklusif, or Skala-IB, is administered by SME Corp. Malaysia.
It provides a capacity-development grant covering up to 90% of total approved project costs, with funding capped at RM200,000 per eligible Inclusive Business company.
For example, if you have a project that cost RM 100,000:
- Total approved project cost: RM100,000
- Potential grant contribution: RM90,000
- SME contribution: RM10,000
If an approved project costs RM250,000, 90% would normally equal RM225,000.
However, because the grant is capped at RM200,000, the maximum government contribution would still be RM200,000.
The wider SINAR programme lists grants ranging from RM13,000 to RM200,000, depending on the programme and assistance involved.
What Exactly Is an Inclusive Business?
An Inclusive Business, or IB, is a commercially viable company that incorporates inclusive or lower-income communities into its core business value chain.
Those participants might operate as:
- Suppliers
- Distributors
- Retailers
- Service providers
However, hiring people from a lower-income community for a one-day charity programme would not automatically turn a company into an Inclusive Business.
The community needs to participate in how the business actually operates and earns money.
If you are a food manufacturer sourcing ingredients from 30 small farmers. Those farmers become part of its long-term supply chain, and increasing production creates additional income opportunities for them, the business model starts to resemble what the Government means by Inclusive Business.
Who Can Apply for the Skala-IB Grant?
Simply being registered as an SME is not enough. SME Corp lists several requirements businesses must meet before being considered.
Your Business Needs Inclusive Business Recognition
As stated, Applicants must already have received Inclusive Business recognition from KUSKOP.
This recognition confirms that the company’s business model meets the Government’s requirements for integrating inclusive communities into its operations.
SME Corp currently publishes recognised Inclusive Businesses, including companies such as Farm Fresh Berhad and Serai Malaya Sdn. Bhd.
You Need At Least RM300,000 in Annual Sales
The business needs annual sales turnover of at least RM300,000.
This immediately makes the programme more suitable for established SMEs than very early-stage startups.
If you have just incorporated a company and have little or no revenue, Skala-IB is unlikely to be the grant designed for your current stage.
You Need At Least Five Full-Time Employees
Applicants must have at least five full-time employees.
Again, the programme is intended to help existing businesses scale rather than fund someone who is still testing their first business idea.
Your Business Must Be a Sdn. Bhd.
Eligible companies must be registered with the Companies Commission of Malaysia as a Sdn. Bhd.
Sole proprietorships and other business structures therefore do not automatically fall within this particular programme’s stated criteria.
Malaysians Must Own At Least 60% of the Company
At least 60% of company equity must be owned by Malaysian citizens.
Foreign-owned businesses exceeding that ownership threshold would therefore not satisfy the stated requirement.
Your Project Must Involve At Least 20 Community Participants
This is another major requirement.
The project proposed under Skala-IB must involve a community with at least 20 participants.
This could include suppliers, distributors, service providers or other participants integrated into the business model.
If you don’t meet the above requirements, don’t sweat! There are other government grants amiable for SMEs, for more info, check out our Top 10 SMES Grants in Malaysia.
What Can You Spend the Grant On?
Skala-IB is relatively broad in terms of eligible business development.
Approved projects can potentially include:
- Machinery and equipment: Particularly investments related to productivity and automation.
- Infrastructure: Including renovations to business premises or factories.
- Working capital: Supporting the operating requirements of an approved project.
- Technology and digitalisation: Such as software, systems and applications.
- Market access: Including packaging, promotion and branding.
- Research and development: Including product development and innovation.
- Certification: Including quality management systems and product testing.
What Documents Will Your Business Need?
Businesses should expect to provide considerably more information than a basic online registration form.
SME Corp lists documents including:
- SSM registration documents
- Inclusive Business recognition letter
- Valid business premises licence
- Latest two years of audited financial statements
- Latest EPF statement
- Latest three months of bank statements
- MSME Status Registration Certificate
- SCORE Rating Certificate or proof of SCORE registration
- Two supplier quotations
- Other supporting documentation where required
How Do You Apply for Skala-IB?
SME Corp does not currently publish a dedicated Skala-IB application portal on its Online Applications page. Businesses interested in applying should contact the Skala-IB Secretariat under SME Corp Malaysia’s Inclusive Development Division for the latest submission process and application documents.
Which SME Situation Sounds Most Like Yours?
The RM200,000 headline is attractive, but whether the grant makes sense depends heavily on how your business operates.
Consider a few simplified examples.
“I operate a factory and want RM150,000 for a new machine.”
You do not automatically qualify. The business still needs an eligible Inclusive Business model.
“We source products from 40 small rural suppliers and need machinery to increase purchases.”
Skala-IB could be considerably more relevant if the business meets the remaining requirements.
“I just launched a startup and need RM100,000 to build an app.”
A startup-focused grant may be more appropriate.
“My company distributes products through 50 community microentrepreneurs.”
This may be worth investigating if those participants genuinely form part of the company’s core value chain.
“I run a profitable restaurant and want to renovate another outlet.”
Conventional SME financing may make more sense unless the business also meets the Inclusive Business requirements.
When Should Your Business Apply?
Applications for SINAR opened in June 2026.
SME Corp states that applications remain open until they reach the maximum committed amount, subject to funding availability.
There is therefore no reason for an eligible business to assume funding will remain available until 31 December.
If your company already:
- Has Inclusive Business recognition
- Generates at least RM300,000 annually
- Employs five or more full-time staff
- Has at least 60% Malaysian ownership
- Operates as a Sdn. Bhd.
- Works with at least 20 eligible community participants
- Has a project suitable for grant funding
then it may make sense to review the programme sooner rather than later.
Businesses should verify the latest application status directly with SME Corp before committing expenditure based on an expected grant.
Apply for the RM200,000 SME Grant, If Suitable
If your company already incorporates an inclusive community into its supply chain and you need capital to expand that model, Skala-IB is worth investigating.
A grant covering up to 90% of qualifying costs can significantly reduce the amount of capital a business needs to commit toward machinery, technology, marketing, R&D or other improvements.
For Malaysian business owners, keeping track of these programmes can make a meaningful difference to the cost of expansion.
At TopBusiness, we follow the latest business news, government incentives and funding developments that can affect how Malaysian businesses invest, expand and grow.
Frequently Asked Questions About the RM200,000 SME Grant
The funding refers to the Skala-IB programme administered by SME Corp Malaysia. Eligible Inclusive Business companies can receive support covering up to 90% of approved project costs, capped at RM200,000 per company.
No. Applicants must meet specific requirements, including KUSKOP Inclusive Business recognition, at least RM300,000 in annual sales, five full-time employees, 60% Malaysian ownership and involvement of at least 20 community participants.
Skala-IB is described by SME Corp as a capacity-development grant rather than conventional repayable financing. However, the programme only covers up to 90% of approved project costs, so the business may still need to contribute part of the project cost.
Yes, machinery and equipment related to productivity and automation are included within the stated project scope. Other eligible areas include digitalisation, working capital, market access, R&D, certification and infrastructure development.
An Inclusive Business is a commercially viable company that incorporates inclusive or lower-income communities into its core value chain, such as through suppliers, distributors, retailers or service providers.
SME Corp states that SINAR applications opened from June 2026 and remain subject to the maximum committed amount and availability of funds. Businesses should therefore verify the current status directly with SME Corp before applying.
