RM3.3b allocated to help SMEs tide over Covid19 - Tengku Zafrul

A total of RM3.3 billion has been allocated by Bank Negara Malaysia (BNM) under the Economic Stimulus Package 2020 (PRE 2020) to help small and medium enterprises (SMEs) sustain their business operations and employment, as well as boost domestic investment.

Finance Minister Tengku Zafrul Tengku Abdul Aziz (above) said the assistance is channelled through financial institutions, comprising commercial banks, Islamic banks and development financial institutions regulated by BNM.

He said SMEs could apply online through the business financing reference platform at the website imsme.com.my.

The financing includes a Special Assistance facility with an allocation of RM2 billion to help ease the short-term cash flow of SMEs affected by Covid-19, Tengku Zafrul said in a statement yesterday.

Eligible SMEs can get up to RM1 million in funding with a term of up to 5.5 years, including a six-month repayment period. The financing rate does not exceed 3.75 percent per annum.

Up to RM5 million in funds for SMEs

For AgroFood, an allocation of RM1 billion is provided to increase national food production for local consumption and the export market.

Eligible SMEs can obtain up to RM5 million in financing with a term of up to eight years at a fixed financing rate of not more than 3.75 percent per annum.

For Automation and Digital Facilities, an allocation of RM300 million is provided to encourage SMEs to automate their processes and digitise their operations to increase productivity and efficiency.

Eligible SMEs can get financing of up to RM3 million, with a term of up to 10 years and at a financing rate of four percent per annum.

Tengku Zafrul said Bank Simpanan Nasional (BSN) has also allocated RM200 million in micro-credit facilities at a financing rate of four percent.

He said all financial Institutions under BNM's regulatory authority also provided special financing of up to RM1 million, without collateral, under a special assistance facility to SMEs affected by Covid-19, as well as Rescheduling & Restructuring facilities for businesses, SMEs and individuals, including a moratorium on loan repayments.

- Bernama