No More Free Grants, But Targeted Funding Still Available — Mohd Redzuan

ALOR SETAR – The government will no longer provide free grants to entrepreneurs but will continue to offer targeted matching grants to committed Bumiputera business owners, said Entrepreneur Development Minister Datuk Seri Mohd Redzuan Md Yusof.

Speaking during a Ramah Mesra Bersama Usahawan Pekan Rabu event in Alor Setar on Sunday, Redzuan stressed that the new approach is aimed at reducing misuse of public funds and ensuring greater accountability in the nation’s entrepreneurial development.

“If an entrepreneur shows commitment to their business and to the government, we will help with a grant—but there will be no more free money,” he said. “Previously, we saw cases where entrepreneurs used only 50 percent of grant funds for business, and the other 50 percent for unrelated matters. That’s a clear misuse, and the government wants to put a stop to it.”

He added that under past administrations, some entrepreneurs received funds simply because they had the right connections. “Today’s government and ministry are more focused and structured in how we support entrepreneurs.”

His remarks came in response to recent criticism from Datuk Hamidah Osman, Vice President of Parti Bumiputera Perkasa Malaysia (PUTRA), who suggested the Entrepreneur Development Ministry be dissolved following its decision to discontinue free grants for Bumiputera entrepreneurs.

Redzuan shrugged off the suggestion, noting that other ministries could take over some of the responsibilities. “Our ministry’s main function is to nurture people who want to become entrepreneurs. If someone is truly interested and has a clear direction, we’ll support them with grants to help grow their business.”

He urged Malaysians to shift their mindset away from expecting free handouts and toward building self-sustaining ventures. “We need to stop relying solely on free aid. Entrepreneurship requires knowledge, resilience, and a long-term vision.”

Redzuan added that SME Corporation Malaysia (SME Corp) still offers matching grants of up to RM500,000, while the government has allocated over RM5 billion for research and development (R&D) grants.

On Friday, Redzuan reaffirmed the government’s decision to end blanket financial assistance, stating that the previous system had encouraged a culture of dependency rather than innovation

–Source