The High Tech & Green Facility (HTG) is a financing programme by SME Bank Malaysia supporting innovative SMEs and start-ups in advancing green and high-tech investments. Channelled through multiple financial institutions, it provides affordable financing for working capital and capital expenditure for sustainable growth. The facility targets key manufacturing and service sectors, as well as start-ups in green technology, digitalisation, and biotechnology. Financing approval is based on alignment with the central bank’s green criteria. The scheme emphasises accessibility and favourable financing conditions, complemented by advisory, technical assistance, and capacity-building services from SME Bank Malaysia to strengthen implementation and maximise impact.
SME Bank Malaysia – High Tech & Green Facility
Abstract
The High Tech & Green Facility (HTG) is a financing instrument designed to support Malaysian SMEs and innovative start-ups. The facility aims to promote sustainable growth and economic recovery by providing accessible financing at a reasonable cost. The programme is part of Bank Negara Malaysia’s (BNM) SME financing initiatives, with funds channelled through 19 participating financial institutions (PFIs), including licensed banks, development financial institutions (DFIs), and the Credit Guarantee Corporation Malaysia Berhad (CGC). Applications must be submitted directly to PFIs, and it is they who assess the applications. There are indications that energy efficiency investments are becoming more popular among Malaysian businesses. More than 50 customers have benefitted from the fund since 2020, with an annual review process in place to assess their progress.
HTG financing is available for Malaysian SMEs operating in key sectors, including manufacturing (such as electrical and electronics, chemicals, refined petroleum, machinery and equipment, medical devices and pharmaceuticals, automotive, aerospace, and transport equipment) and services (including information and communication technology and research and development). It is also accessible to businesses, including commercially ready start-ups, that provide solutions in green technology, digital and 4IR technologies, and biotechnology, as well as SMEs and start-ups engaged in government-led innovation and commercialisation programmes under national blueprints.
The facility provides financing for working capital and capital expenditure, with eligible SMEs able to access up to MYR 10 million (around EUR 2 million) in financing, with a tenure of up to 10 years. The financing rate is set at up to 3.5% per annum for financing without a guarantee or up to 5.0% per annum, inclusive of a guarantee fee, when guarantee coverage is provided by CGC or Syarikat Jaminan Pembiayaan Perniagaan Berhad (SJPP). The guarantee covers 80% and is repaid directly to the bank. Whether a guarantee is required is determined through the credit assessment process of the participating private FIs. Collateral is not required under HTG. Applications have to be submitted directly to the private FIs; the facility will remain available until the allocated MYR 2.6 billion (around EUR 540 million) is fully utilised.
The HTG Facility in Malaysia is a fund provided by the Central Bank (Bank Negara Malaysia), with commercial banks promoting it to SMEs. The Central Bank plays a central role in encouraging entrepreneurs to adopt green transition measures, as key challenges for SMEs in this transition is access to funds, while the SME Development Bank is responsible for assessing customers, alongside a range of commercial financial institutions.
The funding programme is aligned with the Central Bank funding conditions, ensuring that funds are directed towards greening SMEs. The programme follows standard credit assessment procedures both from the PFIs and SME bank standing, but financing approval is contingent upon alignment with CB’s green financing criteria. The SME does not have to be inherently green, but the investment financed must contribute to the green transition.
Barriers in monitoring and reporting progress: Many SMEs face challenges in measuring and reporting on their progress, due to time, resource and technical capacity constraints. To accommodate this, the HTG Facility programme does not require regular reporting for all its applicants. As a downside, this may raise questions concerning the additionality of the scheme and the potential to divert investments to other purposes. In a more novel fund with a broadly similar ambition and setup, the Low Carbon Transition Fund, there are more reporting requirements for beneficiaries, possibly indicating an evolving approach to balancing accessibility with accountability in similar funding schemes. Engaging in education and training efforts could be an effective way to increase SMEs’ capacities in measuring and reporting on their progress.
Favourable financing conditions: The interest rates offered by the HTG, at 3.5% without a guarantee or 5.0% with a guarantee are substantially below the market rate in Malaysia, thereby incentivising uptake by SMEs.
Complementary non-financial support services: Provided by the SME Bank Malaysia in the form of advisory services, capacity building and technical assistance ensures that financed projects are successfully implemented and investments are deployed in the most efficient way.
This work is published under the responsibility of the Secretary-General of the OECD. The opinions expressed and arguments employed herein do not necessarily reflect the official views of the Member countries of the OECD.
This document, as well as any data and map included herein, are without prejudice to the status of or sovereignty over any territory, to the delimitation of international frontiers and boundaries and to the name of any territory, city or area.
Photo credits: © Sakorn Sukkasemsakorn/Getty Images Plus.
© OECD 2025
Attribution 4.0 International (CC BY 4.0)
This work is made available under the Creative Commons Attribution 4.0 International licence. By using this work, you accept to be bound by the terms of this licence (https://creativecommons.org/licenses/by/4.0/).
Attribution – you must cite the work.
Translations – you must cite the original work, identify changes to the original and add the following text: In the event of any discrepancy between the original work and the translation, only the text of the original work should be considered valid.
Adaptations – you must cite the original work and add the following text: This is an adaptation of an original work by the OECD. The opinions expressed and arguments employed in this adaptation should not be reported as representing the official views of the OECD or of its Member countries.
Third-party material – the licence does not apply to third-party material in the work. If using such material, you are responsible for obtaining permission from the third party and for any claims of infringement.
You must not use the OECD logo, visual identity or cover image without express permission or suggest the OECD endorses your use of the work.
Any dispute arising under this licence shall be settled by arbitration in accordance with the Permanent Court of Arbitration (PCA) Arbitration Rules 2012. The seat of arbitration shall be Paris (France). The number of arbitrators shall be one.
