The Islamic social finance initiative has created 410 jobs nationwide, strengthened entrepreneurial capabilities among underserved communities, and expanded opportunities within Malaysia’s growing halal economy.
Malaysia’s efforts to build a more inclusive and sustainable entrepreneurial ecosystem continue to gain momentum as SME Bank’s iTEKAD ISHRAF programme records significant socio-economic impact nationwide.
Since its introduction in 2020 under Bank Negara Malaysia’s (“BNM”) iTEKAD social finance framework, the programme has empowered nearly 1,000 asnaf entrepreneurs nationwide. It has also generated approximately RM40 million in income and created 410 jobs across the country.
The milestone was highlighted during the SME Bank iTEKAD ISHRAF 4.0 Graduation Ceremony, which commemorated the latest cohort of entrepreneurs and marked the programme’s continued nationwide expansion.
Implemented by Small Medium Enterprise Development Bank Malaysia Berhad (“SME Bank” or “the Bank”), a subsidiary of Bank Pembangunan Malaysia Berhad (“BPMB Group”), the initiative aims to strengthen entrepreneurial capabilities among asnaf and underserved communities through a combination of seed capital, business development support and market access opportunities.
Advancing Inclusive Entrepreneurship Through Islamic Social Finance
According to Samad Majid Zain, Relief President and Chief Executive Officer of SME Bank, the programme demonstrates how Islamic social finance can create meaningful and long-term socio-economic impact.
“The achievements of iTEKAD ISHRAF since 2020 demonstrate how Islamic social finance can create meaningful and lasting impact by strengthening entrepreneurial capabilities, increasing incomes and supporting business growth among asnaf and underserved communities,” he said.
He added that SME Bank remains committed to advancing inclusive entrepreneurship and sustainable socio-economic development through an integrated approach that combines funding, structured training and market access opportunities.
The graduation ceremony was officiated by Deputy Minister of Entrepreneur and Cooperatives Development YB Datuk Mohamad Alamin and Minister in the Prime Minister’s Department (Religious Affairs) YB Senator Dr. Zulkifli Hasan.
From Pilot Programme to Nationwide Impact
The growth of iTEKAD ISHRAF reflects increasing collaboration between government agencies, Islamic institutions and strategic partners to support entrepreneurship among underserved groups.
The programme began in 2020 as a pilot initiative involving 20 asnaf entrepreneurs supported by RM250,000 in zakat funds. Between 2021 and 2022, participation expanded to almost 80 entrepreneurs with RM1.07 million allocated through strategic collaborations and partnerships.
Building on these results, SME Bank expanded iTEKAD ISHRAF 3.0 nationwide between 2023 and 2024. The programme benefited 400 entrepreneurs across all 14 states through RM5.6 million in combined allocations under BNM’s iTEKAD matching grant and contributions from strategic partners.
For the 2025–2026 cycle, iTEKAD ISHRAF 4.0 is supporting approximately 420 asnaf entrepreneurs nationwide through RM9 million in allocations. Funding includes matching grants under BNM’s iTEKAD programme and contributions from strategic partners such as BPMB, EXIM Bank, YAPEIM, MBSB Bank, Bank Islam Malaysia Berhad and Bursa Malaysia Berhad.
Introducing ISHRAF (+) Plus for Long-Term Business Sustainability
As the programme evolves, SME Bank is placing greater emphasis on sustainability and market readiness.
Under iTEKAD ISHRAF 4.0, the Bank has introduced ISHRAF (+) Plus, a structured enhancement designed to strengthen entrepreneurs’ long-term competitiveness and resilience. The initiative aligns with Bank Negara Malaysia’s Performance Measurement Framework (PMF), which focuses on delivering measurable developmental impact and sustainable socio-economic outcomes.
Through ISHRAF (+) Plus, participants receive structured mentorship, business development support, industry networking opportunities and market linkage assistance.
These elements aim to help entrepreneurs move beyond business survival and achieve sustainable growth.
SME Bank is implementing the programme in collaboration with Perbadanan Nasional Berhad (“Pernas”), while the Centre for Entrepreneur Development and Research (“CEDAR”) serves as the programme’s business coach. CEDAR provides training in marketing, digitalisation, financial management and operations to support business growth and market expansion.
Strengthening Malaysia’s Halal Entrepreneurship Ecosystem
Beyond iTEKAD ISHRAF, SME Bank continues to strengthen Malaysia’s halal economy through integrated financing and capacity-building initiatives.
The Bank is expanding support for halal entrepreneurs through financing programmes, market expansion initiatives and export-readiness support across the halal value chain. This effort aligns with SME Bank’s mandate under Budget 2026 to implement the HalalBiz Financing Programme alongside entrepreneurship development initiatives such as the Business Exports Programme, Program Pembangunan Kapasiti & Keupayaan Vendor, and Program Pengantarabangsaan Usahawan Halal.
The commitment is further reinforced through SME Bank’s Five-Year Halal Roadmap 2025–2029, which aims to strengthen Malaysia’s position within the global halal economy.
As of April 2026, SME Bank’s halal-related financing portfolio had exceeded RM2 billion, representing more than 20% of its total financing assets. The Bank has also facilitated halal certification for 75 entrepreneurs and channelled RM7 million in halal-related grants to approximately 137 entrepreneurs to support business growth, market access and ecosystem development.
Driving Sustainable Economic Growth
The success of iTEKAD ISHRAF highlights the growing role of Islamic social finance in supporting entrepreneurship, creating jobs and improving livelihoods among underserved communities.
By combining financing, training, mentorship and market access, the programme offers a holistic development model that extends beyond financial assistance. More importantly, it provides entrepreneurs with the tools and capabilities needed to build resilient businesses and contribute to local economic development.
As Malaysia continues to prioritise inclusive growth under the MADANI Economic Framework, initiatives such as iTEKAD ISHRAF demonstrate how targeted support, strategic partnerships and entrepreneurial development can generate meaningful economic opportunities while strengthening community resilience nationwide.
