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Financing Your Factory: SME Loans & Government Grants in 2026

  • Sky
  • Jan 24
  • 2 min read

By Industrial Guru | Guide for SMEs & Manufacturers


top industrial hotspot area in klang valley

Stop renting. Here is how to leverage banking facilities to own your own production hub


Many business owners assume they cannot afford to buy a factory because they lack the cash for a huge down payment. The reality is that Malaysian banks are currently very supportive of the industrial sector, often offering better packages than for commercial shop lots.

Here is what you need to know about financing your factory and industrial purchase in 2025.


1. Margin of Finance (MOF)


For industrial property, banks typically offer:

  • Individual Name: Up to 80% - 85% loan margin.

  • Sdn Bhd (Company): Typically 70% - 85%, depending on the company's financial health.

  • Pro Tip: Some banks offer "100% + 5%" packages (covering renovation/insurance) under specific SME Guarantee Schemes (SJPP), provided your company has a strong track record.


2. Documents You Must Prepare


To get approved fast, have these ready before you view a property:

  • Last 3 years of Audited Reports (for Sdn Bhd).

  • Last 6 months of Bank Statements (to show healthy cash flow).

  • List of existing contracts/projects (to prove future income stability).


3. Government Grants & Incentives (MIDA)


Did you know the government might help pay for your expansion?

  • MIDA (Malaysian Investment Development Authority) offers various incentives, such as the Domestic Investment Strategic Fund (DISF) for companies upgrading their machinery or moving to high-tech manufacturing.

  • While MIDA doesn't pay for the land, their grants for automation can free up your capital, making the property purchase easier.


4. Lock In the Rate


With the OPR (Overnight Policy Rate) stabilizing, now is a good time to lock in a loan. Owning your factory acts as a hedge against inflation. While rental rates will keep rising every 3 years, your loan installment stays relatively flat.


Not sure if you qualify? Industrial Guru works closely with specialized SME bankers from Maybank, Public Bank, and CIMB for financing your factory. We can help pre-screen your profile before you place a booking.


Contact us today for a private consultation at +6011-20801854 or whatsapp us at https://wa.link/i7wmgl


For more insights on industrial and commercial listings, visit IndustrialGuru.my.



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