For Malaysian businesses seeking to raise capital for a specific venture, options like bank loans or issuing new shares are well-known. However, there is another regulated pathway that allows companies to pool funds from the public for a common enterprise: the Interest Scheme (Skim Kepentingan).

Governed by the Companies Commission of Malaysia (SSM) under the Companies Act 2016, these schemes offer a unique way to fund projects. Understanding the different types of schemes available is the first step for any company considering this path. This guide, based on official information from SSM, breaks down the three main categories.

What Exactly is an Interest Scheme?

Before looking at the types, let’s clarify what an Interest Scheme is. In simple terms, it’s a scheme where a company invites the public to invest money in a common project or business venture. In return, the investors acquire an “interest” in the venture and expect to share in its profits or assets.

Common examples in Malaysia include:

• Agricultural investment schemes (e.g., investing in a durian or palm oil plantation).
• Property timeshare schemes.
• Recreational club membership schemes (e.g., golf or country clubs).

This is a highly regulated activity that requires a company to register a prospectus with SSM to protect public investors.

The Three Types of SSM-Regulated Interest Schemes

SSM has categorized Interest Schemes into three types, each with different requirements and limits.

1. Skim Kecil (Small Scheme)

This is the most accessible category, designed for smaller-scale projects.

• Eligible Companies: Both Sdn. Bhd.

  and Public Companies (Berhad) can apply.
•  

  Fund Size Limit: The total funds raised cannot exceed RM10 million.
• Best For: SMEs or startups looking to fund a specific, smaller project by pooling funds from a wider group of investors.

2. Skim Premium (Premium Scheme)

This category is for larger, domestic investment projects.

•  

  Eligible Companies: Open to Public Companies (Berhad) only.
• Fund Size Limit: There is no fund size limit for most scheme types (e.g., agriculture, recreation). However, for schemes that offer purely

  financial returns (Skim Pelaburan), the fund size is capped at RM50 million.
• Best For: Established public companies launching large-scale domestic projects, such as a major property or agricultural development.

3. Skim Asing (Foreign Scheme)

This scheme facilitates overseas ventures by Malaysian public companies.

•  

  Eligible Companies: Open to Public Companies (Berhad) only.
•  

  Scheme Location: The business or project venture is located overseas.
•  

  Fund Size Limit: The fund limits are the same as the Premium Scheme: no limit in general, but capped at RM50 million for investment schemes with purely financial returns.
• Best For: Malaysian public companies looking to raise funds from the public to invest in an international project.

Is an Interest Scheme Right for Your Business?

While Interest Schemes offer a powerful way to raise capital without diluting company equity, it’s crucial to understand that this is a complex and highly regulated process. It requires lodging a detailed prospectus with SSM, appointing a trustee to safeguard investors’ interests, and adhering to strict governance standards.

The foundation of any successful fundraising effort, including an Interest Scheme, is impeccable financial health and transparent reporting.

At SMONE, we ensure your company’s accounting records and financial statements are always accurate, credible, and professionally prepared. We provide the solid financial backbone required for your prospectus, due diligence, and ongoing reporting to investors and regulators.

Contact us today to get your business “investment-ready” for its next phase of growth.

(Disclaimer)
This article is for general informational purposes and is based on materials published by SSM. It does not constitute legal or financial advice. Launching an Interest Scheme is a complex process that requires consultation with qualified legal and financial professionals.