Rural Economic Financing Scheme (SPED)
  1. What are the features of SPED?Financing based on the concept of Shariah (Ijarah Thummalbai, Bai Bithaman Ajil, Bay-Dayn, and Al-Qardhul Hassan).Financing limits:
    • RM20,000.00 to RM250,000.00 (for operators who have been operating for less than 3 years);
    • RM250,000.00 to RM500,000.00 (for operators who have been operating for more than 3 years);
    • Financing is allowed 3 times but does not exceed the maximum limit eligibility
  2. What is the application procedure for SPED and the documents to be submitted?Application procedure:< >(i) Use the SPED Application Form from the Ministry’s website at;(ii) The guidelines for filling in the form and preparing the project paper are included with the application form;(iii) Two copies of the completed application form as well as the project proposal and related documents must be submitted as follows:The first set is submitted to the Ministry for review of compliance with the policy and scope of financing.The second set is submitted to the Implementing Bank, i.e. Bank Rakyat or SME Bank for technical evaluation of the management, marketing, financial and viability of the project;Only fully completed application forms attached with the required project papers and copies of relevant documents will be accepted/registered/processed.What is the scope of financing covered by SPED?The scope of SPED financing covers:
    • Manufacturing industry
    • Commercial agriculture
    • Service industry
    • Rural tourism
  3. What are the types of financing not covered by SPED?The types of financing not covered by SPED are as follows:< >Large scale enterprises/businesses, such as petroleum/mineral exploration projects, housing and hotel projects;Purchase of fixed assets for resale or rent, such as purchase of industrial sites/lands, shops and factories/workshops;Purchase of vehicles for the purpose of public transport;Loan to pay off debt;Loan for poultry farming; andOperational costs such as salaries, rent, and so on.What are the conditions for SPED application?The conditions for SPED application:< >Business/enterprise fully-owned (100%) by Bumiputera;Business/enterprise registered with the Companies Commission of Malaysia;Operator runs the business/enterprise on a full-time basis;Business premises are separate from residential premises;Operators or companies with existing loans from banks or financial institutions as well as other Government funding exceeding RM250,000.00 are required to pay off 75% of the existing loans;Conforms to regulations set by the Government, industry, Environmental Pollution Act, etc;Age of the borrower must not exceed 60.Other than SPED by MRRD, what other agencies under MRRD also provide loans to entrepreneurs?Other than SPED, MARA, a MRRD agency also provides loans to entrepreneurs. It offers four financing schemes:< >Business Enhancement Financing Scheme;Commercial Financing Scheme;Express Contract Financing Scheme (SpiKE); andMARA Entrepreneur Guarantee Scheme (SJUM)
  4. Which division should be contacted to enquire about financing by SPED?

    Bahagian Pengupayaan Ekonomi (Economic Empowerment Division) Aras 19, Kementerian Kemajuan Luar Bandar dan Wilayah (KKLW) No 47, Persiaran Perdana, Presint 4 Pusat Pentadbiran Kerajaan Persekutuan 62100 PUTRAJAYA Tel: 03 – 8891 5602 Faks: 03 – 8888 2341