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Contents

Business Model
Financial Results
Capital Allocation
Shareholders and Leadership
Future Direction
Valuation
Conclusion
Frequently Asked Questions

12 Things to Know about Big Caring Group’s IPO

On 29 October 2026, Big Caring Group Bhd (BCG), a leading multi-brand pharmacy chain, released its IPO Prospectus on Bursa Malaysia. Its IPO shares are offered at RM1.08 each. Upon completion, BCG would enlarge its number of shares to 7.4 billion, lifting its market capitalisation to RM8.0 billion. The application to BCG’s IPO shares officially opened on 29 October 2026 and will close on 5 November 2026. Its tentative listing date is set for 19 November 2026.

Source: BCG’s IPO Prospectus (Page v)

Before subscribing to the Big Caring Group IPO, it is important for us to take note of its business model, its financial performances, its leadership team, its intention for utilising the IPO proceeds raised and its valuation. Thus, in this article, I’ll summarise 12 findings from BCG’s IPO Prospectus. In doing so, you’ll obtain a clearer understanding of BCG in regards to its corporate profile, growth strategies and future direction.

They are as follows:

Business Model

1

BCG operates 668 pharmacies across Malaysia on 30 September 2026

BCG was founded by Lee Meng Chuan and Lim Sin Yin. In 2006, they opened a pharmacy in Damansara Uptown, Petaling Jaya. Of which, they expanded to 12 pharmacies located across the Klang Valley in 2017. Then in 2018, through merging with RedCap Pharmacy, it added another 22 pharmacies in Johor into its portfolio. Shortly after, the group made a strategic investment in Johor and acquired MY Pharmacy Group in 2020. This had added 17 pharmacies into its portfolio. Then, it acquired a 51% interest in Mercury Wellness and a 70% interest in Ting Pharmacy in 2022 and 2023. Thus, it further added 31 pharmacies, which are located in the East Coast of Malaysia, into its portfolio.

By organic growth and acquisitions, its business had expanded from 12 pharmacies to a total of 267 pharmacies nationwide in 2023.

In 2024, it acquired Caring Pharmacy, which operates pharmacies under key brands that include CARING, Georgetown and Wellness, for RM888.3 million. The combined entity has created an enlarged entity known as Big Caring Group Sdn Bhd, which has operated 538 pharmacies in 2024. From then, it expanded organically to 646 pharmacies by 2026. The company made its latest acquisition into iCare Pharmacy and thus, further added retail network to 668 pharmacies nationwide on 30 September 2026.

Source: BCG’s IPO Prospectus (Page 117)

2

BCG diversified into other healthcare businesses starting in 2022.

Since 2022, BCG made four major acquisitions into other healthcare-related businesses, which include:

60% interest in AHC Medical Supplies, a medical equipment and rehabilitation product distributor in 2022.
Yanling, a manufacturer of pharmaceutical, nutraceutical, and healthcare products. It was acquired for RM63.0 million in 2023.
Medispec, a company that imports, markets, distributes, and wholesales a wide range of pharmaceutical products, medicines, nutraceutical products, medical devices, herbal and supplement products. It was acquired for RM249.4 million in 2025.
57.1% interest in Your Physio, which provides physiotherapy services. Your Physio now operates 27 physiotherapy centres. It was acquired for RM32.8 million in 2025.

Financial Results

3

Retail Sales Accounted for 92.9% of BCG’s Total Revenue in 2026

BCG breaks down its total revenue into two segments: retail (92.9%) and others (7.1%).

For retail, it further breaks down revenue into Big retail outlets, Caring retail outlets, and e-commerce & corporate sales. Big retail outlets are pharmacies operated under brands, which include BIG Pharmacy, Mercury Wellness, and Ting Pharmacy. Caring retail outlets would consist of pharmacies under brands such as CARING, Georgetown and Wellness.

For Big retail outlets, revenues increased at a 3-Year CAGR of 18.3% from RM1.07 billion in 2023 to RM1.77 billion in 2026. This was contributed by same-store sales growth (SSSG), which ranged between 7.5% to 9.9% and a continuous growth in retail outlets.

Meanwhile, for Caring retail outlets, they began to contribute to BCG in 2024. Hence, its first full year of contribution was in 2025. It brought in RM1.62 billion in revenue in 2025. Then, in 2026, its revenue had increased to RM1.76 billion. It was attributed to its continuous growth in retail outlets and a SSSG of 4.9% in that year.

E-commerce and corporate sales accounted for 5.2% of total revenue in 2026.

As for others, which mainly include Yanling and Medispec, they have contributed 7.1% of total revenue in 2026.

Combined, BCG grew its revenue from RM1.11 billion in 2023 to RM4.02 billion in 2026.

Source: BCG’s IPO Prospectus (Page 288)

4

Net Margins Improved from 3.3% in 2023 to 4.8% in 2026.

BCG’s retail pharmacies achieved higher product rebates from higher purchase volumes. Also, BCG’s acquisitions into Yanling, Medispec, and Your Physio raised gross margins for they command higher gross margins than its pharmacies. Gross profits had increased in that three-year period, up from RM232.4 million in 2023 to RM1.21 billion in 2026. For the period, it generated higher advertising and promotion income and managed to keep the company’s growth in operating & administration expenses in line with its sales growth.

As a result, its net margins improved from 3.3% in 2023 to 4.8% in 2026.

Earnings rose from RM37.0 million in 2023 to RM191.6 million in 2026.

Earnings per share (EPS) was 2.60 sen in 2026 (based on 7.38 billion shares issued).

Source: BCG’s IPO Prospectus (Page 275)

Source: BCG’s IPO Prospectus (Page 276)

Capital Allocation

5

Expansion Funded by Both Operating Cash Flows and Debt

From 2023 to 2026, BCG had generated RM865.7 million in operating cash flows. For that three-year period, it raised RM963.2 million in debt, which mainly consists of term loans, bankers’ acceptances and revolving credit and RM212.1 million from issuing equity. From every RM100 in total cash inflows, BCG raised RM42.40 in operating cash flows, RM47.20 in debt and RM10.40 in equity.

Calculated from BCG’s Statement of Cash Flows (Page 330-332)

Of which, BCG spent 60.2% of these cash inflows into acquisitions. The largest would be BCG’s acquisition into Caring in 2024. BCG spent 11.2% into capital expenditures and has spent 9.6% of these cash inflows on interest costs. BCG kept 14.8% of its cash inflows in its bank accounts and paid out 3.2% of its cash inflows in dividends.

Thus, in this period, BCG focused on acquisition and expansion. It financed them via the combination of operating cash flows and debt.

Calculated from BCG’s Statement of Cash Flows (Page 330-332)

Shareholders and Leadership

6

Lee Meng Chuan, Lim Sin Yin and Creador V are BCG’s Key Shareholders

Founders, Lee Meng Chuan and Lim Sin Yin are the major shareholders of BCG. They hold 8.0% and 4.0% direct shareholdings in BCG and indirect 42.9% shareholdings in BCG with Uptown Paradise Sdn Bhd (UPSB) as of 30 September 2026.

Meanwhile, Creador V, via Iris Pallida Sdn Bhd, holds 33.7% shareholdings of BCG.

BCG’s board consists of seven directors. Lee Meng Chuan is appointed as Group MD and Lim Sin Yin is appointed as Executive Director of BCG.

Tan Sri Dato’ Seri Dr. Haji Noor Hisham bin Abdullah is appointed as BCG’s Chairman.

Upon listing, all key shareholders shall remain the largest shareholders in BCG.

Source: BCG’s IPO Prospectus (Page 196)

Future Direction

7

89.5% of IPO Proceeds to be Used to Repay Bank Borrowings

BCG expects to raise RM637.8 million in gross proceeds from its IPO listing. Of which, the company allocates 89.5% of these proceeds to repay bank borrowings. BCG had owed a total of RM1.7 billion in total bank borrowings. By repaying this debt, which was raised mainly to fund its acquisition in Caring, Medispec and Your Physio, BCG would be able to realise RM26.3 million in interest savings per annum.

In addition, BCG allocates RM30.0 million (4.7%) to set up a new distribution centre as an initiative to support its business growth. The remaining RM37.0 million would be used as defrayment of listing expenses, which include:

Professional fees
Underwriting commission, brokerage fee, and placement fee
Regulatory fees
Other fees and expenses related to listing and contingencies

Source: BCG’s IPO Prospectus (Page 40)

8

Targeting to Open 40-50 New Retail Outlets a Year

BCG reveals its target to open 40-50 new retail outlets a year in the next 3-5 years. This is intended to be executed with its two-pronged strategy, which include strengthening its presence in established regions and scale growth in underpenetrated markets. BCG’s average planned capital investment for opening new outlets is RM18.0 million a year and the estimated working capital (staff and inventories) for each outlet ranged from RM450,000 to RM650,000.

Source: BCG’s IPO Prospectus (Page 124)

9

Acquisition of Yeap Medical Supplies Pte Ltd (YMS)

On 14 October 2026, BCG entered into a SPA to acquire YMS in the following manner:

76% interests for S$16.0 million
10% interests (price to be determined based on profits after tax in 2027)
10% interests (price to be determined based on profits after tax in 2028)

Upon completion, BCG will own 96% shareholdings in YMS. The other 4% interests will be split into 1% interest each and be transferred to 4 key management personnel of YMS.

YMS is a wholesaler and retailer of medical goods in Singapore. It operates 7 pharmacies and wholesales to both government and private health institutions. YMS’s financials are summarised as follows:

Source: BCG’s IPO Prospectus (Page 126)

10

MyHA – All-in-One Digital Health Companion

BCG established MyHA, its digital health platform, where users could access convenient, seamless and integrated healthcare experience. They include tele-consultation from its panel of doctors, pharmacists, dietitian, physiotherapists and healthcare professionals. Since establishment, it had recorded an increase in digital health transactions, rising up from 25,000 per month in 2025 to 125,000 per month in 2026. It aims to further increase digital health transactions to 180,000 per month in 2027.

Source: BCG’s IPO Prospectus (Page 127)

Valuation

11

BCG Intends to Maintain a Dividend Payout Ratio (DPR) of Up to 50%

BCG targets a DPR of up to 50% of its profit after taxes and minority interests. If you invest for income, read our easy guide to dividend investing.

Source: BCG’s IPO Prospectus (Page 18)

12

BCG’s IPO Shares are Offered at P/E Ratio of 41.5

Based on its latest EPS 2026 of 2.6 sen and offering price of RM1.08, BCG’s shares would be offered at P/E Ratio of 41.5. A high P/E is not always bad, and a low one is not always cheap. I explain why in Is Low P/E Ratio Necessarily an Attractive Buy?

Source: BCG’s IPO Prospectus (Page 13)

Conclusion

Founded in 2006, BCG now has 668 pharmacies in its portfolio. It operates under brands such as BIG Pharmacy, CARING, Wellness, Georgetown, Ting, Mercury Wellness, and iCare. This is a product of continuous organic growth and using debt to fund key acquisitions. In addition, BCG expands vertically as it ventures into related healthcare businesses. It’s also pursuing further expansion with its acquisition into YMS in Singapore. Based on RM1.08 a share, its IPO shares are offered at a P/E Ratio of 41.5 based on 2.6 sen in EPS 2026 currently. Since there is no other listed pharmacy company, BCG offers a comparison on valuation with other established listed retailers on Bursa Malaysia as follows:

Source: BCG’s IPO Prospectus (Page 33)

Eco-Shop is one of these retailers. I covered its listing in 11 Things to Know About Eco-Shop Before Subscribing Its IPO Shares.

Ultimately, the decision to subscribe to an IPO is dependent on the understanding of its business model, financials, growth opportunities, risks and valuation. Also, our decisions would be subjected to our unique goals, plans and circumstances.

Thus, for further readings, you may download BCG’s IPO Prospectus here.

Frequently Asked Questions

When does the Big Caring Group IPO open and close?

The retail offering opened at 10am on 29 October 2026 and closes at 5pm on 5 November 2026. Balloting is on 10 November, and BCG shares are set to list on Bursa Malaysia on 19 November 2026.

What is the Big Caring Group IPO price?

Each IPO share is offered at RM1.08 each. Based on 7.38 billion shares issued, BCG’s market capitalisation would be RM8.0 billion.

What will Big Caring Group do with the IPO money?

BCG expects to raise RM637.8 million. It will use RM570.7 million (89.5%) to repay bank loans, RM30.0 million to build a new distribution centre and about RM37.1 million to pay for listing costs.

Does Big Caring Group pay dividends?

BCG plans to pay out up to half of its yearly profit as dividends, from its profit after tax and minority interests.

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Contents

A Tale of Two Wallets
Two Generations, Two Money Languages
Why We Need to Build This Bridge
How Parents and Grandparents Can Use the E-Wallet to Teach Kids About Money
Make Money a Family Game
Small Stories, Big Lessons
Pass the Torch
FAQ

E-Wallets: Are Parents Losing Their Say, or Gaining a New Way to Teach Money?

A Tale of Two Wallets

Back in the 80s, our first money lesson as kids was usually a coin bank. We dropped in our coins one by one, or held a bank passbook and wondered how much interest had been added this time.

Our parents would say: “Save slowly. Every little bit adds up.”

Today I look at my friends’ kids. Many already have their first wallet, and it lives on a phone: a Touch ‘n Go eWallet. They buy bubble tea without touching a single note or waiting for change. Scan, and it’s done.

Their first money lessons come as numbers on a screen and the ping of a notification.

Times change, and so does the way we handle money. Whether it’s the jingle of coins or the glow of a QR code, money still does the same job. It pays for daily life, and it funds our dreams.

What a Gen Alpha Wallet Looks Like

A 2025 Mastercard report found that 97% of Malaysia’s Gen Alpha kids (born 2010 onwards) already have access to a financial account. That count includes accounts a parent holds for them. 46% have an e-wallet, and 40% even have an investment account.

I laughed when I read that. Some people my age still won’t touch a single share, and these kids already have investment accounts.

So what does a normal day look like for them?

Ordering a bowl of laksa at the hawker centre: scan, done.
Topping up a game: one tap and the new gear is theirs.
Paying a classmate back for a book: transfer, and it lands in seconds.

To them, money is something you never see. It moves the moment you tap, and it talks back with pings and cashback offers. They expect paying to go down as smooth as a sip of teh tarik.

Their parents can see where this is heading. In the same report, 62% of Malaysian parents said they expect their kids to grow up in a cashless society.

Our Generation’s Wallet

Compare that with how we Baby Boomers and Gen X grew up.

Cash was king. Notes in your pocket and money in an ang pow packet felt real.
The bank passbook. You queued up, watched the teller stamp it with a loud thunk, and only then felt safe.
Postal orders. To send someone money, you filled in a form, mailed it and waited a few days.

Our parents taught us simple rules:

Saving is a virtue. Save long enough and you can buy a house.
Debt is dangerous. Avoid it if you can.
Investing is a luxury. Fixed deposits are the safe choice.

I still remember using my first credit card. I was terrified, like I was walking around with a bomb in my wallet.

Today’s kids go tap, tap, tap on their e-wallets without a second thought. Two different worlds.

Two Generations, Two Money Languages

Kids today talk about top-ups, cashback and Shopee deals. Our generation talks about fixed deposits, property and “just tahan, don’t borrow”.

So the conversation gets stuck:

Parent: “Save that RM10. Don’t waste it.”
Child: “If I top up RM10, Shopee gives me 20% cashback. So worth it!”

One generation wants a full rice bin. The other wants a full phone. It’s like a chicken talking to a duck.

Whatever language we speak, we want the same thing in the end: a better life now and a safer future later.

Why We Need to Build This Bridge

If each generation keeps talking past the other, trouble follows:

The kids learn to spend, but never learn to plan.
The parents feel out of date and slowly drop out of money conversations.
The family’s money values fade, and that hurts what gets passed down.

There’s an old Chinese saying: one generation plants the trees, the next enjoys the shade. If the parents stop planting, or the kids don’t see why the trees matter, the shade is gone.

So this gap is bigger than a communication problem. Your family’s wealth and values are on the line, and so is how close you stay as a family.

How Parents and Grandparents Can Use the E-Wallet to Teach Kids About Money

This is easier than it sounds. It comes down to your attitude and taking the first step.

Learn a little digital money

Don’t let the hassle put you off. Start small. Next time you buy a kopi, pay with a QR code. Or ask your grandchild to help you set up an e-wallet. You get some quality time together as a bonus.

Teach old wisdom with new tools

Our generation’s wisdom comes down to saving, patience and protecting what we have. We just need to explain it in a way the kids understand.

Budgeting: use the e-wallet’s transaction history to track where the money went.
Saving: move spare balance into TNG’s GO+, where it earns daily returns, instead of leaving it to sit in a passbook. GO+ is only for verified users aged 18 and above, so for younger kids, run it from your account and show them the numbers.
Investing: open a small robo-advisor account together and let them watch compounding at work. Most platforms need the account holder to be 18, so open it in your name and let them follow along.

I once told my old friend: “The e-wallet is a spending tool, and it’s also a record book. Twenty years from now, your kids can scroll back and see inflation for themselves. ‘Wah, a bowl of noodles was RM5 back then. Now it’s RM15.'”

Stay open, not defensive

When you hear the word e-wallet, don’t shake your head and call it “playing with money”.

Share your own story instead: “When we bought our first house, we saved for seven or eight years before we had the down payment. Even if QR Pay had existed back then, we would still have needed patience and a plan.”

Teach them to spot scams

With digital money, the biggest danger is getting scammed.

A friend of mine once got a fake call claiming the bank had frozen the account. My friend came very close to transferring money out.

Remind the kids:

Don’t click on random links.
Double-check every transfer before you hit send.
There’s no such thing as a free lunch. Don’t get greedy over small freebies.
If you think you’ve been scammed, call 997, the National Scam Response Centre, straight away. Then call your bank.

Make Money a Family Game

Money lessons don’t have to be lectures. When the whole family plays the money game together, it gets fun and everyone has a part. The Chinese say that when the family is in harmony, everything prospers. Family money habits work the same way. Here are two ways a three-generation family can start.

Plan the family trip together

Say the family wants a holiday in Penang. In the old days, the parents saved hard and the kids just spent. This time, split the jobs:

Parents run the “cash account”. Put aside a bit from each month’s salary, like the Milo tin we had as kids, and watch it grow.
Kids run the “e-wallet deals account”. They find out which hotel has the best price on the booking apps, which restaurants give Grab cashback, and which card or e-wallet earns the most points.
Hold a small family money meeting. List every idea, then pick the plan that gives the best value.

The kids learn to compare and to count every ringgit. The parents see for themselves how handy the technology is. The whole trip becomes a live money class.

When you get home, look back together. Which spending was worth it? Where could you have saved?

Hand the grandkids a small portfolio

The grandparents put RM1,000 into a small investment account. It could be a robo-advisor, a unit trust or even one simple stock. Then they hand the job of tracking it to a grandchild:

Each month, the grandchild records whether the account went up or down.
At the monthly family dinner, everyone spends 10 minutes on the results.
The grandparents explain what long-term investing means, and why you don’t panic when prices fall.

The kids learn about money, and they learn responsibility too. Being trusted with a piece of the family’s money makes them feel important. The grandparents get to be the mentor.

Small Stories, Big Lessons

An uncle I know learned GrabPay from his grandson. Once he got the hang of it, he turned around and taught the boy about compound interest. The grandson’s eyes lit up: “So money can make more money by itself!”

I tried something like this with my son. I put RM50 of pocket money in his e-wallet and let him manage it for a week. He spent fast at the start, then found he didn’t have enough to last the week. That one week taught him more than me telling him to save ten times over.

Malaysians also take to new ways of paying faster than people in the West. In a separate Mastercard survey, 63% of Malaysians said they prefer newer methods like QR codes, tap-to-pay and mobile wallets over cash. In North America it was 25%, and in Europe 24%.

For those of us over 50, it’s tempting to brush this off as kids’ stuff. It’s where the whole country is heading. As the old saying goes, when the tide comes in, you swim or you get swept away. Better to ride the wave than fight it.

Pass the Torch

Parents and grandparents are still a child’s most important money teachers.

The tools will keep changing, from passbooks to apps and from coins to QR codes. The way money works hasn’t changed, and the rules for handling it well haven’t either. Patience and discipline are the real family fortune, and they’re ours to pass down.

So don’t worry about being out of date. Try one new money app this week, and let the kids watch you learn. Somewhere along the way, you’ll find you’re building a bridge across the generation gap.

FAQ

What is an e-wallet?

An e-wallet is an app on your phone that stores money, so you can pay by scanning a QR code or tapping your phone instead of using cash. In Malaysia, popular e-wallets include Touch ‘n Go eWallet, GrabPay, Boost and ShopeePay. You top it up from your bank account or card, and every payment shows up in the app’s transaction history.

How can I use an e-wallet to teach my kids about money?

Put a fixed amount of pocket money in your child’s e-wallet, say RM50 for the week, and let them manage it. Go through the transaction history together to see where the money went. Let them find the best deals when the family plans a trip. When the money runs out early, that lesson sticks better than any lecture.

Can my child use Touch ‘n Go GO+?

Not on their own. GO+ is only for Malaysians aged 18 and above who have a verified Touch ‘n Go eWallet. For younger kids, keep the GO+ balance in your own account and show them how the daily returns add up. This teaches them that spare money can grow when you leave it alone.

How do I protect my child from e-wallet scams?

Teach your child three habits: never click on random links, check every transfer before you hit send, and be wary of anything that looks free. If you think you’ve been scammed, call 997, the National Scam Response Centre, straight away, and then call your bank. The faster you call, the better the chance of stopping the money from leaving.

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Contents

From Social Media to Supermarkets
What’s The Price Tag for Growth?
What If You Cannot Get a Business Loan on Your Own?
Introducing SJPP and How It Help SMEs?
How Do Government Guarantee Schemes Support SME Financing in Malaysia?
FAQ

From Home Kitchen to Supermarket Shelves: How SJPP Helps SMEs Get Financing to Grow

Meet Mr. Lee and his wife.

They founded RUSLEE, an aromatic chilli sauce brand in their kitchen at home.

What began as a hobby had soon gained traction when Mr. Lee started to produce short videos on how RUSLEE is created and enjoyed and posted them regularly on Instagram and TikTok. The orders for RUSLEE increased and so did its fan base and community.

With great reviews and repeat orders, RUSLEE is shaping up to be a promising business.

From Social Media to Supermarkets

Then, Mr. Lee and his wife attended a food & beverage exhibition in town.

There, they met purchasing managers representing major supermarket chains nationwide.

These managers tasted RUSLEE and were impressed by it.

They wanted RUSLEE to be on shelves of their supermarkets all over the country.

All this sounded like music to Mr Lee and his wife.

In their minds, they figured that if they could just get RUSLEE into 500 of these outlets and have an average sales volume of 100 bottles a month, that would be 50,000 bottles of chilli sauce on a monthly basis. By multiplying RM5.00 in selling price per bottle, that’s RM250,000 in revenue per month or RM3.0 million per annum.

They could see the potential of RUSLEE becoming a household brand nationwide.

But, there are a few problems.

What’s The Price Tag for Growth?

The first and the most obvious issue is on scaling production.

Supplying 50,000 bottles of chilli sauce each month is no easy feat.

Mr. Lee and his wife need a bigger facility and better equipment to create, bottle, transport, and distribute RUSLEE at a much larger scale. In addition to these capital expenditures, they need to assemble a team and train them on various aspects of the business operation. To name a few, it includes production, quality control, inventory and sales management. On top of this, they have to purchase more raw materials namely, chillies, palm sugar, fish sauce, aromatics and the glass bottles to produce tens of thousands of bottled chilli sauces every single month. All of them are additional working capital to expand the business.

Next, the issue is on product display fees.

This is so that RUSLEE gets prominent spots on the shelves of these supermarkets.

Otherwise, shoppers are less likely to notice the brand.

Also, on top of display fees, Mr. Lee and his wife need to scale up their marketing campaigns for RUSLEE. Appearing on Instagram and TikTok is a good start. But, to attract greater visibility, they would need to scale up their social media marketing, invest in sponsorships, billboards, and also greater production of content to build awareness and get shoppers to try out RUSLEE.

All in all, Mr. Lee and his wife need to raise funds to realise RUSLEE’s potential.

What If You Cannot Get a Business Loan on Your Own?

What if Mr. Lee and his wife lack years in operating history and business experience?

What if they couldn’t raise the funds required?

What if they do not have enough collateral to secure financing?

Does it mean that their aspirations to turn RUSLEE into a national brand have come to an end?

Do they have to keep RUSLEE as a small business despite its potential to grow big?

Well, here’s the thing:

Introducing SJPP and How It Help SMEs?

Established in 2009, Syarikat Jaminan Pembiayaan Perniagaan Bhd (SJPP) is a company which is wholly owned by the Minister of Finance Incorporated.

It offers guarantees to financial institutions on financing facilities granted to SME owners via the Government Guarantee Schemes it administers. In simple words, the Government of Malaysia promises the bank that it will cover part of the financing if the business cannot repay it. Because the bank takes on less risk, it is more willing to lend to SMEs that have little or no collateral.

Here is how it could work for Mr. Lee and his wife.

First, they can approach a participating financial institution to apply for financing which is under a relevant scheme administered by SJPP. In their case, the applicable schemes could be:

Working Capital Guarantee Scheme (WCGS) (operating more than 2 years)
Working Capital Guarantee Scheme – Start Up (WCGS-SU) (operating 6 months to 2 years)

Then, the financial institution will submit the application details to SJPP for review. Let’s assume, in their case, SJPP approves the guarantee under one of the schemes above. With this, it would give the financial institution additional support to extend credit to Mr. Lee and his wife. As such, they both would have the finances to expand and take RUSLEE to the next level. Under both schemes, the Government of Malaysia guarantees 70% of the financing, and the money can be used for working capital (such as raw materials) or capital expenditure (such as new machines).

How Do Government Guarantee Schemes Support SME Financing in Malaysia?

Eligible SMEs in Malaysia could obtain financing at competitive rates to expand their businesses even when they may not have sufficient collaterals and operating history to secure financing on their own.

Probably, with a little push from the government, there is a chance for RUSLEE to be turned into a national or even a regional brand from where it was first started in a home kitchen.

So, are you an owner of an aspiring start-up?

Or, are you an established SME owner who is looking to scale your business?

Or, are you already a household brand who is eyeing to grow regionally?

If so, you may check out SJPP.

Currently, SJPP offers numerous government guarantee schemes under various categories and business sectors, with each scheme subject to its own financing limits and term periods. So, for aspiring business owners, it is helpful to check out and explore the available schemes and find a few that are most relevant and fitting to your business needs.

Ultimately, for a business to realise its growth potential, cash flow is needed.

Frequently Asked Questions

What is SJPP?

SJPP (Syarikat Jaminan Pembiayaan Perniagaan Berhad) is a company wholly owned by the Minister of Finance Incorporated. It was formed in 2009 to manage government guarantee schemes that help SMEs in Malaysia get financing from banks and other financial institutions.

Can I get SME financing in Malaysia without collateral?

It may be possible. Under SJPP’s government guarantee schemes, the Government of Malaysia guarantees up to 70% of the financing, depending on the scheme. This gives banks more confidence to lend to SMEs with little or no collateral. The bank still makes the final decision on your application.

Does SJPP lend money directly?

No. SJPP does not give out loans or charge interest. You apply at a participating bank or financial institution, which provides the money and sets the interest rate. SJPP gives the guarantee to that institution on the Government’s behalf.

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How to Buy a Subsale Property in Malaysia

About The Author

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KC Lau (46 words):
KC Lau is Malaysia’s leading personal finance educator and author of 10 books, including Money Smart. Since 2006, he has published over 1,500 articles and hosted 1,000+ webinars, helping everyday Malaysians build better money habits through practical, formula-based guidance on saving, investing, and long-term wealth building.

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Contents

What Is a Subsale Property?
How Much Cash Do You Really Need?
Where to Search, and How to Check the Real Price
The 10 Steps From Offer to Keys
Four Traps That Catch First-Time Buyers
What Is New
Key Takeaways
Frequently Asked Questions

How to Buy a Subsale Property in Malaysia

Buying a subsale property in Malaysia is not hard. It is just full of small steps, and nobody hands you the full list before you start.

Subsale simply means buying from the current owner instead of from a developer. However, most buyers walk in knowing only two numbers: the asking price and the 10% deposit.

What Is a Subsale Property?

A subsale property is a home you buy from an existing owner instead of from a developer. The house is already built, and the ownership document, called the title, already exists.

That is the big advantage. You are not waiting three years for keys, and you are not guessing from a showroom model. What you see is what you buy.

However, the trade-off is that when you buy directly from an owner, you have to pay for all of it yourself. Meanwhile, developers often pay your legal fees and throw in a rebate.

How Much Cash Do You Really Need?

Prepare roughly 12% to 15% of the price in cash. On a RM500,000 condo, that is about RM64,000 if it is your first home, and about RM75,000 if it is not.

Most people save up the 10% down payment and think that is all the cash they need. Then they sit down with the lawyer and find out about the fees on top. The table below shows where the money goes, using a RM500,000 condo with a 90% loan of RM450,000 as the example.

What you payHow it is worked outOn a RM500,000 condo

Down payment10% of the priceRM50,000
Lawyer fee, purchase contract1.25% of the first RM500,000RM6,250
Lawyer fee, loan contract1.25% of the first RM500,000RM5,625
Stamp duty to transfer ownership1% first RM100k, 2% next RM400kRM9,000 (RM0 if first home)
Stamp duty on the loan0.5% of the loanRM2,250 (RM0 if first home)
Valuation, searches, small chargesVariesRM1,500 to RM3,000
Cash needed, first homeAbout RM64,000
Cash needed, not first homeAbout RM75,000

Lawyer fees are not made up on the spot. They follow an official price list, the Solicitors’ Remuneration Order 2023, and your lawyer may give you up to 25% off it. So ask first. Add 8% service tax on top. The small charges are mostly searches to confirm the seller really owns the place and is not bankrupt.

There are conditions on the stamp duty saving. Malaysian first-time buyers pay nothing on both the transfer and the loan agreement for homes up to RM500,000, signed between 1 January 2026 and 31 December 2027. If your name has ever been on a residential title, you do not qualify. Foreigners pay a flat 8%.

One note on your loan. Banks lend 90% for your first or second housing loan, but only 70% from the third onward. They count loans, not properties, so a loan you have fully cleared no longer counts. I wrote about how that rule works here.

Where to Search, and How to Check the Real Price

Before you make any offer, find out what your neighbours actually sold for. Not what they were asking or what they were paid.

For property listings, use PropertyGuru, iProperty, EdgeProp and Mudah. For real selling prices, use Brickz, which takes its numbers from Land Office records.

An agent will often tell you three other buyers are about to make an offer on the same unit. Sometimes that is true. But the agent only gets paid when you sign, and the Land Office records do not.

The 10 Steps From Offer to Keys

Every subsale purchase runs in the same order, whether you are buying a RM300,000 flat or a RM3 million bungalow.

Ask a bank how much it will actually lend you, before you choose a unit. This tells you your real budget so you do not settle on something you cannot afford.
View the unit and make your offer. Bring a checklist. Turn on the taps to test the water pressure, look up for water stains on the ceiling, and check that the car park bay comes with it.
Pay a small booking fee, usually 1% to 3% of the price, when you sign the agent’s form. This holds the unit for you.
Hire your own lawyer, not the seller’s.
Apply for your home loan. Ask the bank about the lock-in period, which is the number of years you must keep the loan before you can pay it off fully. Clear it earlier than that and the bank charges you a penalty.
Agree on what stays and what goes. Write down which items the seller leaves behind, like the air-conditioners or kitchen cabinets, and which he takes with him.
Sign the main contract, called the sale and purchase agreement, usually 14 to 21 days after your offer is accepted. You pay the rest of the 10% deposit here. The remaining 90% is usually due within 3 months of signing. If you need longer, most agreements give one extra month at 8% interest. Budget for that instead of panicking when the payment due date is nearing.
The bank sends someone to check the place is really worth what you are paying. Your lawyer then prepares the loan paperwork.
Take out your EPF savings if you are using that to fund your purchase, and let the bank release the money. It clears whatever the seller still owes on the place first, then pays him the rest.
Collect your keys 3 to 5 working days after the money is fully paid. This handover is called vacant possession, the point where the seller gives you the empty unit to move into. You also pay the seller back for any bills he settled in advance, like maintenance fees.

Four Traps That Catch First-Time Buyers

None of these are complicated. They just happen fast, and by the time you notice, the money is already gone.

1. The agent’s friendly valuer. If three banks value the unit at RM480,000 and only the agent’s contact says RM560,000, walk away from that number. It usually means somebody is taking a cut, and you are the one left holding an overpriced unit when you sell.

2. Signing the contract separately from the seller. You sign, your money leaves your account, and the seller takes his own sweet time. You cannot touch your EPF money until both sides have signed and the contract is stamped. Ask to sign on the same day.

3. The bank’s automatic fire insurance. Banks send a standard letter saying they will buy a fire policy on your unit unless you show them one in two weeks. For a condo, the whole building already has one, paid out of your maintenance fee. Email the bank to hold off, then send them the front page of the building’s policy.

4. The 3% that people mistake for their own tax. Your lawyer holds back 3% of the price and sends it to the tax office within 60 days. That pays the seller’s property gains tax, not yours. It is not extra money either. It comes out of the 10% you already paid.

What Is New

Stamp duty. The top rate of 4% now starts above RM1 million.
First-home relief. No stamp duty at all on homes up to RM500,000, if you sign by 31 December 2027.
EPF. Your old Account 2 is now called Akaun Sejahtera, and you apply for the housing withdrawal online through i-Akaun instead of queueing at a branch with forms.
Stamping. Stamp duty is now paid online through MyTax, and you work out the amount yourself. Property transfers join that system in 2027, and the tax office is waiving penalties through 2026.

Borrowing costs have been steady. Bank Negara has held the Overnight Policy Rate at 2.75% since July 2025, and that is the base rate your home loan is priced off.

Key Takeaways

Prepare 12% to 15% of the price in cash, not just the 10% down payment.
Check what units actually sold for before you make an offer.
Get your own lawyer, and sign the contract on the same day as the seller.
First home at RM500,000 or less? You save about RM11,250 in stamp duty if you sign by 31 December 2027.

Get the cash right, get your own lawyer, and the rest of a subsale purchase is just following the order above. If this is your first home, read my post on the five financial must-haves for first-time home buyers next. If it is an investment unit, start with my A-Z guide to property investing.

Download my free e-book on practical tips to manage your finances here.

Frequently Asked Questions

How much deposit do I need for a subsale house in Malaysia?

You need 10% of the price, in two parts. A booking fee of 1% to 3% goes to the agent when you sign his form, and the balance when you sign the main contract. Set aside another 2% to 5% for lawyer fees and stamp duty.

Can I use my EPF to buy a subsale property?

Yes. Housing money comes out of Akaun Sejahtera, which used to be Account 2. You can take out the gap between the price and your loan plus 10% of the price, or your whole balance in that account, whichever is smaller. Apply through i-Akaun once your contract is stamped.

Do I need my own lawyer if the seller already has one?

Yes. The seller’s lawyer works for the seller. Yours checks that the seller really owns the place, how much he still owes the bank, and that your unit and car park bay are written into the contract correctly. Appoint one right after you book the unit.

How long does buying a subsale property in Malaysia take?

Plan for four to five months. You sign the contract 14 to 21 days after your offer is accepted, the remaining 90% is due within 3 months, and keys come 3 to 5 working days after full payment. Leasehold homes take longer because the state must approve the sale.

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When the Kids Fly the Nest, Your Dreams Come Home: A Money Plan for Empty Nesters

Empty nesters are parents whose children have grown up and left home. Here’s what my wife and I learned when we became empty nesters, and the money plan I now use for the second half of life.

A Goodbye in Portland 

In August 2025, my wife and I spent a full week in Portland in the US. We were there to drop our son off at college. He’s starting four years at a liberal arts college there, and that made us official empty nesters.On day one, we helped him move into a single room in the dorm. On day two, we went to the orientation for new parents. The school walked us through the help it offers students, and how parents can keep supporting their kids from the other side of the world.A professor from the economics department took us through the courses and internships waiting for him over the next four years. Every day we went back to campus to buy dorm stuff: a computer, a mini fridge, hooks, bedsheets, toiletries. Busy days, and good ones.In between errands, my wife and I traded stories about our own first week at university. Thirty years ago, when each of us left for UTM, our parents didn’t come along to register us.Maybe they were saving on bus fare. Maybe they were too busy earning a living. This time, we got to walk our son through every step.On the last day, we drove away from the dorms while he kept waving goodbye. As I started the engine, I looked over at my wife in the passenger seat. Her eyes were a little wet.I was holding it in too, and something in my chest ached.Pulling out of that car park, I realised we were also saying goodbye to a role we had played for 20 years. We started as clueless new parents and somehow made it to this day. Our boy has grown up, and now it’s time for us to start the next part of our own lives.

What Is Empty Nest Syndrome?

Empty nest syndrome is the sadness and sense of loss many parents feel when their last child leaves home. It is not a medical illness. It’s a normal reaction to a big change in life, and for most parents the feeling eases as they build new routines.That ache in my chest in the car park was exactly this. What helped us most was having something new to move towards.

The Dreamer in You Is Back

When parenting fills your whole life, you put your dreams on hold.Maybe you once wanted to travel the world, write a book, learn an instrument, open a café or do charity work. Real life looked different.We changed diapers, sent the kids to tuition, worked long hours and paid the mortgages. Everything we wanted for ourselves kept getting pushed to “later”.Now the kids have left home. Those sleeping dreams can finally wake up.What about me? I was getting ready for a small concert every year, and I’m thinking about recording my fourth album. My wife and I also want to slow down and travel more, while we’re still healthy and our legs still work.Here’s a simple exercise for you:

Write down three things you’ve always wanted to do but haven’t done yet. They might become the starting point for the next stage of your life.

Midlife Freedom Isn’t a Licence to Splurge

Some people hear “the kids are gone, we’re free” and decide it’s time to reward themselves. Big trips, a new car, dinners at celebrity chef restaurants.I don’t want to rain on anyone’s parade, but someone has to say it. Freedom gives you more control over how you spend your time, money and energy. That control only helps if you use it well.Yes, once the kids are raised, the load gets lighter and you have more spare cash. Before you book that trip to climb Mount Fuji, make sure you won’t burn through your retirement money on the way up.What you have now is the freedom to choose. That kind of freedom works best with a plan and some self-control.

When Midlife Dreams Meet Real Bills

The empty nest years still come with big bills: the rest of your child’s education, your own retirement, ageing parents and medical costs that rise faster than other prices. Plan for each of them before they arrive.Back to my own story. This year, our household spending hit an all-time high. Our son’s tuition and living costs in the US come to nearly US$100,000 a year.When friends who live in the US came to see us in Portland and the topic of fees came up, even they gasped. We joked that a trip around the world looks cheaper.Honestly, though, we’re not panicking.We started preparing for his education 18 years ago, when he was born. The amount we planned for back then was lower than what it costs now. Years of saving and investing have left us better prepared than we expected, and this bill won’t touch our retirement goals.To parents around my age: don’t sacrifice your retirement for your kids’ education. If you do, the day you’re old and can’t work anymore, your kids will end up supporting you. That isn’t fair to them either.There are other realities to face too:

At what age do you plan to retire? In Malaysia, the minimum retirement age for private sector workers is 60.Both sets of parents are getting older. Will they need care, and who pays for it?In 2026, 8.4% of Malaysians were aged 65 and above.Inflation eats into your savings every year. Is your money keeping up

You need to take all of this seriously.

A Money Plan for Empty Nesters

Once you enter the second half of life, the way you use money and what you use it for need to change.Here’s what I do. Take what’s useful for you.1. Know your numbers.

How ready is your retirement fund? Is your EPF enough? EPF’s targets are RM390,000 for basic savings, RM650,000 for adequate savings and RM1.3 million for enhanced savings. Do you have a PRS (Private Retirement Scheme)? Any rental or investment income?How much of your children’s education is still unpaid? Which parts must you cover, and which can be shared?

About The Author

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KC Lau (46 words):
KC Lau is Malaysia’s leading personal finance educator and author of 10 books, including Money Smart. Since 2006, he has published over 1,500 articles and hosted 1,000+ webinars, helping everyday Malaysians build better money habits through practical, formula-based guidance on saving, investing, and long-term wealth building.

Testing Testing Testing
Ian Tai is a dividend investor and financial content creator who has written 500+ articles for KCLau.com, The Fifth Person, and Value Invest Asia. Co-founder of DividendVault.com, he hosts weekly webinars teaching Malaysian and Singaporean investors how to build long-term, income-focused stock portfolios grounded in fundamentals.

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