microLEAP’s scaling its efforts to empower MSMEs

28 January 2025

KUALA LUMPUR: microLEAP, one of nine Securities Commission (SC)-registered P2P financing platforms participating in the newly launched Sarana alternative financing scheme, is scaling its efforts to empower Malaysia’s micro, small, and medium enterprises (MSMEs) and small contractors. With a proven track record of financial inclusion and a strong nationwide presence, microLEAP is bridging critical financing gaps, offering innovative Shariah-compliant financing options tailored to the unique needs of Malaysian businesses.

As Malaysia continues to dominate the global Islamic finance industry, recently topping the 2024 Islamic Finance Development Indicator (IFDI), microLEAP plays a pivotal role in advancing the nation’s economic and Islamic financing goals. In 2024, 207 out of 208 investment notes issued by microLEAP were fully Shariah-compliant, underlining its commitment to promoting ethical, sustainable, and transparent financing solutions.

Through the Sarana financing scheme, microLEAP offers SMEs and government contractors faster, more flexible financing options, such as invoice financing and contract pre-financing, enabling businesses to meet their working capital needs effectively. Unlike traditional financial institutions with stringent requirements, microLEAP leverages technology to streamline access to capital, ensuring underserved segments have an opportunity to thrive.

With RM125 million in financing disbursed in 2024 alone, marking an exceptional 101% year-on-year growth, microLEAP’s impact on the SME landscape is undeniable. Tunku Danny Nasaifuddin Mudzaffar, Founder & CEO of microLEAP, emphasised the critical role of alternative financing in building resilience within Malaysia’s SME sector.

“SMEs are the backbone of Malaysia’s economy, but many still face barriers to securing the capital they need to grow. Platforms like microLEAP are not just filling a gap but transforming the way businesses access financing. Through Shariah-compliant and online solutions, we are fostering a more inclusive financial ecosystem that drives sustainable growth,” said Tunku Danny.

“Through the Sarana scheme, we’re not just providing financing—we’re empowering businesses to grow, scale, and compete in an increasingly demanding environment. Invoice financing, in particular, is a game-changer for SMEs and contractors. It turns their unpaid invoices into immediate cash flow, ensuring they have the working capital needed to fulfil contracts, pay suppliers, and seize new opportunities.”

As the only P2P financing platform with offices in Sabah, Sarawak, Johor, Penang, and Perak, microLEAP ensures SMEs across Malaysia can access financing tailored to their needs, regardless of location. This strategic reach is critical to advancing financial inclusion, particularly in rural areas, where businesses often struggle to secure funding.

microLEAP’s innovative approach is built on a foundation of robust risk management, ensuring the confidence of both borrowers and investors. The platform achieved a default rate of just 0.63% in 2024, a 41.1% improvement from 2023, reinforcing its reputation for reliability. Meanwhile, investor confidence surged, with a 61.2% increase in new investors joining the platform last year.

With the SC’s Catalysing MSME and MTC Access to the Capital Market: 5-Year Roadmap (2024-2028) providing a clear framework for industry growth, microLEAP is well-positioned to lead the next wave of innovation in Islamic and conventional financing. By bridging the gap between underserved SMEs and investors, microLEAP is ensuring Malaysia’s continued leadership in the global Islamic finance arena while driving economic activity nationwide.