Why Sapot?

2020 has been a tough year for all Malaysians – more so for the small businesses. When everyone were instructed to cease all business activities under the Movement Control Order (MCO) in March 2020 to curb the COVID-19 virus, it exposed some gaps in Malaysia’s social protection infrastructure for individuals and small businesses.

The socio-economic impact to Malaysians were devastating.

Malaysia has since been operating under the Restricted Movement Control Order (RMCO) from July 2020. And thankfully, situation has improved. Many Malaysians have recovered, found new employment and means of earning an income for themselves and their family.

The Government has prepared and disbursed targeted financial assistance to help alleviate short term financial pains. However, some still need help to recover, some still struggle to make ends meet. Some need more funding than usual to restart their business after months of cessation.

The backdrop of a pandemic in 2020 aside, small businesses historically have always had limited access to financing with conventional financial institutions as they are deemed ‘unbankable’.

*Did you know, that out of 708,000 SMEs, 77% are micro enterprises?

Did you know that only 52% SMEs are financed by bank funds.

56% of SMEs use their own funds and some with assistance from friends and family.

Some 18% have received some form of financing from the Government.

Acknowledging these gaps, we aim to create an alternative reliable, legal, safe and transparent channel and avenue where Malaysians can provide financial support to another small Malaysian business.

This empowers the business owners to take control and present the best case for their business financial needs to encourage other Malaysians to support them in their business venture.

Note: *A study by Deloitte and Visa (2015) – Digital banking for small and medium-sized enterprise; improving access to finance for the underserved