Social finance is envisioned as an enabler of social development in Malaysia, complementing public sector finance and commercially-driven financial solutions to promote greater social resilience. The unique qualities of social finance ¨C (i) flexibility of funding instruments; (ii) incorporation of structured training in business and financial management; and (iii) embedded impact monitoring mechanisms ¨C can advance financial inclusion whilst addressing constraints typically associated with traditional finance.
For more information, please read our box article on social finance in BNM's Financial Sector Blueprint 2022-2026.
iTEKAD is an umbrella programme that has been established by Bank Negara Malaysia, with the aim of assisting low-income microentrepreneurs to strengthen their financial management and business acumen towards generating sustainable income. Each iTEKAD programme combines the provision of business assets funded by social finance instruments (e.g. donations, social impact investment, zakat and cash waqf) with microfinance, supplemented with structured financial and business training.
With these blended components, iTEKAD enables microentrepreneurs to gain access to funding to start and sustain their businesses. The structured training provides participants with upskilling and mentoring, which helps to improve their business acumen and generate higher income sustainably.
As announced under Belanjawan 2025, a grant of RM15 million will be allocated towards the seed capital component for iTEKAD. The grant will be matched with social finance funds e.g. donations, zakat and corporate social responsibility funds.
The Government is also allocating a RM5 million grant through iTEKAD to subsidise microentrepreneurs¡¯ annual takaful contributions. This will provide financial protection to microentrepreneurs against risks to their livelihoods from events such as accidents and natural disasters. This grant will be matched with contributions by takaful operators. This initiative will benefit small traders, delivery riders and Inisiatif Pendapatan Rakyat participants.
For more information, please read our feature article, iTEKAD: An Ecosystem Approach in Scaling Up Social Finance in BNM¡¯s Annual Report 2023.
(as at June 2024)
*Data as of June 2024
*Data as of June 2024
Financial institutions participating in iTEKAD
Affin Islamic Bank
AmBank Islamic
Bank Islam
Bank Muamalat
CIMB Islamic Bank
Public Islamic Bank
RHB Islamic Bank
Bank Simpanan Nasional
SME Bank
Agrobank
Maybank Islamic
Bank Rakyat
Hong Leong Islamic Bank
AIBIM
AmBank Islamic
| Programme name | AmBank Islamic¡¯s iTEKAD Programme |
|---|---|
| Objective | Provide grant, technical and entrepreneurship training at early stage of their business, with support on digital infrastructure. |
| Funding features | Returned zakat and access to microfinancing facility |
| Value-added propositions | Zakat-funded grants with support for enhancement of business digital capability |
| Target segment | Asnaf entrepreneurs |
| Implementation partners |
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Bank Islam
| Programme name | iTEKAD BangKIT Microfinance | iTEKAD Maju Microfinance |
|---|---|---|
| Objective | Provide benevolent loans / Qard financing for business start-up and expansion. | Microfinancing for working capital and seed capital on needs-basis |
| Funding features | Donations-funded microfinancing facility | Returned zakat and microfinancing facility |
| Value-added propositions | Benevolent loan for business start-up and business expansion | Zakat-funded purchase of business equipment for business expansion |
| Target segment | Microentrepreneurs who are ineligible for ordinary banking financing facilities | B40 and asnaf microentrepreneurs |
| Implementation partners |
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Bank Muamalat
| Programme name | iTEKAD Mawaddah | iTEKAD Mahabbah |
|---|---|---|
| Objective | Focusing on microentrepreneurs to undertake new business venture through social impact investment i.e. Mudharabah financing. | Provide benevolent loans / Qard financing to support microbusiness owners or gig economy workers from selected business sectors (as agreed with funders). |
| Funding features | Returned zakat and two-tier mudarabah investment | Returned zakat and microfinancing facility |
| Value-added propositions | Facilitation of halal certification process | Benevolent loan to support businesses in sectors including food and beverages, and the gig economy |
| Target segment | Halal microentrepreneurs | Microentrepreneurs in the F&B sector and gig economy |
| Implementation partners |
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CIMB Islamic Bank
| Programme name | iTEKAD CIMB Islamic Rider Entrepreneur Asnaf Programme |
|---|---|
| Objective | Provide participants with employment opportunities as food delivery riders to establish stable income, paired with entrepreneurial training. |
| Funding features | CSR grant, cash waqf, zakat fund and microfinancing facility |
| Value-added propositions | CSR- and waqf-funded motorcycles and entrepreneurship training programme for beneficiaries, with prospective opportunity for business financing if required |
| Target segment | Individuals from B40 and asnaf categories |
| Implementation partners |
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Public Islamic Bank
| Programme name | Public Islamic iTEKAD Micro Entrepreneurs Development Programme |
|---|---|
| Objective | Provide support to microentrepreneurs at early stage of their business through entrepreneurship training tailored to respective business sector. |
| Funding features | Returned zakat and access to microfinancing facility |
| Value-added propositions | Entrepreneurship development through funding support and training in digital marketing and operations |
| Target segment | Asnaf entrepreneurs |
| Implementation partners |
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RHB Islamic Bank
| Programme name | BEST-BYOB (B40 Empowerment Strategy ¨C Be Your Own Boss) |
|---|---|
| Objective | Provide support to start pre-franchise business through structured training, business matching and financial assistance |
| Funding features | Returned zakat and access to SME financing facility |
| Value-added propositions | Zakat-funded grants and/or benevolent loans for start-up of franchise business |
| Target segment | Asnaf venturing in pre-franchise business |
| Implementation partners | Perbadanan Nasional Berhad (PERNAS) |
Bank Simpanan Nasional
| Programme name | BSN MulaNiaga |
|---|---|
| Objective | Facilitate gradual growth of participants towards being bankable by providing training, coaching and funding in tranches. |
| Funding features | Returned zakat with graduation to microfinancing facility |
| Value-added propositions | Zakat-funded grants and/or graduation to microfinancing for business expansion |
| Target segment | Asnaf and graduated asnaf, who may not be eligible for zakat assistance nor ordinary banking financing faciilities |
| Implementation partners | Teraju Ekonomi Asnaf Selangor (TERAS) |
Bank Rakyat
| Programme name | Bank Rakyat UNIpreneur | RAKYATpreneur | Rakyatpreneur B40 |
|---|---|---|---|
| Objective | Provide support to student entrepreneur through coaching, mentoring and monitoring | Provide support to microentrepreneurs at early stage of their business through coaching, mentoring and monitoring. | Provide support to microentrepreneurs through coaching, mentoring and monitoring. |
| Funding features | Returned zakat and access to microfinancing facility | MOF grant and access to microfinancing facility | |
| Value-added propositions | Zakat-funded and/or MOF grants for expansion of new business | ||
| Target segment | University students entrepreneurs from asnaf/B40 background. | Asnaf microentrepreneurs with at least 3 months business operation. | Non-asnaf B40 entrepreneurs. |
| Implementation partners |
25 universities nationwide:
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Agrobank
| Programme name | Program Hijrah Asnaf Tanaman Nanas Berkelompok | Program Inkubator Usahawa Tanaman Rock Melon | Program Hijrah Asnaf Ayam Kampung, Program Hijrah Asnaf Ruminan, Program Hijrah Asnaf Tanaman Cili Fertigasi, Program Hijrah Asnaf Tanaman Hidroponik Meja and Program Hijrah Asnaf Tanaman Cendawan | Program Hijrah Asnaf Tanaman Kelapa, Program Hijrah Asnaf Tanaman Tembikai, Program Laman Cendawan, Program Hijrah Asnaf Tanaman Cili Fertigasi, Program Hijrah Asnaf Tanaman Nanas MD2, Program Inkubator Keusahawan Aquapreneur Pembenihan Udang Galah, Program Inkubator Keusahawanan Ternakan Rumpai Laut, Program Inkubator Keusahawanan Tanaman Rumput Napier, Program Hijrah Asnaf Agen Pemasar Produk Makanan Sejuk Beku, Program Pembangunan Usahawan Asnaf Street Food |
|---|---|---|---|---|
| Objective | Provide resources for upskilling on top of funding support to develop waqf land for high-value agriculture products. | Provide grant, technical and entrepreneurship training for aspiring university students to venture into agripreneurship. | Provide grant, technical and entrepreneurship training for aspiring asnaf to venture into agripreneurship. | Provide grant, technical and entrepreneurship training for aspiring asnaf to venture into agripreneurship or entrepeneurship of agricultural products |
| Funding features | Returned zakat and access to microfinancing facility | Diverse social finance funds (zakat, zakat wakalah) and access to microfinancing facility | ||
| Value-added propositions | Zakat-funded grants paired with microfinancing to support ventures into agricultural project or agripreneurship. | |||
| Target segment | Asnaf who are committed to become entrepreneurs and work on agricultural projects i.e. becoming an agripreneur. | Asnaf / students from B40 or asnaf background, who are committed to become entrepreneurs and work on agricultural projects. | Asnaf / students from B40 or asnaf background, who are committed to become entrepreneurs and work on agricultural projects i.e. becoming an agripreneur. | Asnaf who are committed to become entrepreneurs and work on agricultural projects i.e. becoming an agripreneur. |
| Implementation partners |
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SME Bank
| Programme name | SME Bank iTEKAD Penjana Komuniti | SME Bank iTEKAD Ishraf |
|---|---|---|
| Objective | Provide training, short-term coaching and seed capital as funding support. | Provide training, medium-term coaching and seed capital as funding support |
| Funding features | Returned zakat, CSR contributions and access to microfinancing facility | |
| Value-added propositions | Zakat- and/or CSR-funded grants for business start up or expansion | |
| Target segment | B40 microentrepreneurs inclusive of asnaf and single mothers | Asnaf entrepreneurs |
| Implementation partners |
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Maybank Islamic
| Programme name | Aspirasi Wanita |
|---|---|
| Objective | Empowering the economy for women in micro-enterprises and the gig economy, while embracing digital technology. |
| Funding features | Zakat and access to microfinancing facilities |
| Value-added propositions | Funding and training to support start-up of business or gig career |
| Target segment | Aspiring microentrepreneurs or gig workers from asnaf categories |
| Implementation partners |
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Hong Leong Islamic Bank
| Programme name | Business Foundation Program | Marginalised Asnaf Empowerment Program | Women Excellence | SURI Youth Empowerment Program | Central Kitchen |
|---|---|---|---|---|---|
| Objective | Provide funding and training to marginalised low-income groups towards venturing into entrepreneurship in different economic activities. | Facilitate microentrepreneurs¡¯ access to a central kitchen, business equipment and necessary industry training & accreditation. | |||
| Funding features | Benevolent loans funded by CSR funds with subsequent access to financing facility | Zakat-funded grants with access to financing facility | HLISB Special Fund for Projects with subsequent access to financing facility | Zakat wakalah and purification fund with subsequent access to financing facility | Capital funding by the NCIA appointed Implementation Partner with subsequent access to financing facility |
| Value-added propositions | Funding and training to support start-up of business, enhanced with digital onboarding methods | Technical training and funding for business assets to instil tailoring and entrepreneurship skills | Special training to help women entrepreneurs grow their revenue and create job opportunities | Funding and living skill of sewing to targeted B40 youths / single mothers. | Facilitating access to a central kitchen, business equipment and necessary industry training and accreditation |
| Target segment |
B40 with the particular focus on the following segment:
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Women asnaf | Women entrepreneurs | Underprivileged / B40 youths from Langkawi, specifically targeting single mothers | F&B entrepreneurs |
| Implementation partners |
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MADCash | SURI |
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Affin Islamic Bank
| Programme name | iTEKAD PERWIRA-i |
|---|---|
| Objective | To support retired Malaysian Armed Forces personnel in harnessing skills and productivity to generate sustainable income streams via entrepreneurship |
| Funding features | Zakat funds and microfinancing facilities |
| Value-added propositions | Funding and training to provide insights to the fundamentals of business management, digital economy and online marketing |
| Target segment | Retired Malaysian Armed Forces personnel |
| Implementation partners |
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Association of Islamic Banking and Financial Institutions Malaysia (AIBIM)
| Programme name | myZakat ¨C Program Transformasi Usahawan Asnaf |
|---|---|
| Objective | Equipping low-income microentrepreneurs in Terengganu with seed capital and equipment for business, knowledge and skills as well as microfinancing facilities |
| Funding features | Returned zakat and access to microfinancing facilities |
| Value-added propositions | Pilot multibank* iTEKAD programme |
| Target segment | Microentrepreneurs in the food and beverage sector |
| Multibank member banks |
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| Implementation partners |
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* Multibank iTEKAD programme: An iTEKAD programme involving more than one participating financial institution, collectively offering microfinancing to eligible iTEKAD programme participants, while also contributing to the programme¡¯s seed capital or structured training components.
FAQs
General Info
- No. iTEKAD is meant to be a sustainable initiative that can also contribute to the nation building and extend its outreach to larger groups of beneficiaries. This is only possible with stronger partnership with wider network of implementation partners in building higher capacity of the programmes nationwide.
No, iTEKAD is open to all Malaysians, subject to the dynamics of each programme. For example, using a neutral social finance funding such as CSR fund would enable the programme to be offered to participants regardless of their faith and belief.
At the moment, most iTEKAD programmes are offered as a closed-door initiative. The selection of participants will be assessed by PFIs based on the sources that are mutually agreed with the implementation partner. As the programme expands, we anticipate PFIs and implementation partners can allow opportunities for wider selection of participants, including from walk-in applications.
The Government has allocated a total of RM55 million grant to augment the seed capital component of iTEKAD programme in 2022 to 2024. The grant is being matched with social finance funds such as donations (including Corporate Social Responsibility (CSR) funds), zakat and cash waqf. During the Belanjawan 2025 announcement on 18 October 2024, the Government has allocated the following funding to support the expansion of the iTEKAD initiative:
- An additional RM15 million matching grants for the seed capital component of iTEKAD; and
- New allocation of RM5 million matching grant through iTEKAD to subsidise microentrepreneurs¡¯ annual takaful contributions. This will facilitate takaful operators to provide microentrepreneurs with financial protection against risks to their livelihoods from events such as accidents and natural disasters.
Collaborative
No, financial institutions may have their own social finance programmes besides iTEKAD.
However, we would encourage more financial institutions to be recognised under the iTEKAD brand. As PFIs, they would receive a couple of advantages, such as invitation to networking events with potential collaborators or implementation partners, greater exposure on the PFI¡¯s initiative, and opportunity to tap on government grant, among others.
No, iTEKAD is open to all financial institutions currently regulated by BNM.
Yes. PFIs could have various programmes registered under the iTEKAD umbrella, at any particular time.
Yes, in fact most of the target segment under each iTEKAD programme is determined together by PFIs and their implementation partners. This is applicable for the new cohort or batch of participants.
Yes, they may - subject to discussion with the respective PFIs. This is applicable for the new cohort or batch of participants, taking into account, resources, capacity and capability of all implementation partners to offer all three components of iTEKAD and monitor the impact of such programmes to the beneficiaries.
Yes. iTEKAD is very flexible in which all participating financial institutions (PFIs) are encouraged to collaborate with implementation partners such as corporates, universities, NGOs, SIRCs ¨C for both existing and new programmes. This can be in a form of content, mode and delivery of programme, funding, structured training, list of potential participants, etc.
Yes. This is subject to arrangement with the respective PFIs, especially for the new cohort or batch of participants. iTEKAD is intended to assist the unserved and underserved segment of the society, particularly from the low-income microentrepreneurs group.
No. Implementation partners are not required to obtain approval from BNM. Instead, PFIs will be informing BNM on iTEKAD programme collabarations through our various engagements.
The government grant can only be applied by the respective PFIs. The amount of grant applied has to be matched at least with an equivalent amount of social finance funding, including from contribution of PFIs and implementation partners of the respective iTEKAD programmes.
Yes, we welcome such contribution. You may communicate with the respective contact persons of each PFIs in this microsite.
Industry-led initiatives
myWakaf
myWakaf is a waqf fund initiative established jointly by six Islamic banks under the Association of Islamic Banking and Financial Institutions Malaysia (AIBIM). To facilitate transparency and convenience for the public to contribute cash waqf, myWakaf features a digital platform listing fundraising for dedicated socioeconomic projects. The fund is then channelled towards projects on economic empowerment, healthcare and education, as identified by participating financial institutions and State Islamic Religious Councils.
For further information, please visit myWakaf webpage
.myZakat
This is another initiative by AIBIM to channel the pool of returned zakat from participating financial institutions to support low-income microentrepreneurs in partnership with Amanah Ikhtiar Malaysia (AIM) and Agensi Kaunseling dan Pengurusan Kredit (AKPK).
For more details, please visit aibim.com
