KUALA LUMPUR – The RM40 billion Semarak Niaga Keluarga Malaysia programme, which was launched yesterday, will increase access to financing to the business sector, especially for micro, small and medium enterprises (MSMEs) and the informal sector, reported Bernama.
Prime Minister Datuk Seri Ismail Sabri Yaakob said the programme, which comprised direct loans, financing guarantees and equity injections, would benefit every group of entrepreneurs.
“For micro and small businesses, the government is sensitive to the need for access to financing with low interest rates. In this regard, the Informal and Micro Financing Scheme (SPIM) will offer loans of up to RM10,000 at a zero interest rate with priority given to informal sector traders. The fund size for this programme alone is RM200 million.
“For agrifood entrepreneurs, the micro credit scheme by Agrobank will offer loans of up to RM75,000 at a zero per cent rate for the first six months with a moratorium facility for up to six months,” he said when launching the programme here on February 21.
For more mature businesses, he said financial institutions such as SME Bank would offer loans of up to RM10 million under the IBS 2.0 Promotion Fund scheme and up to RM1 million under the Young Entrepreneur Financing Programme 2.0 (YEF 2.0).
Collectively, Ismail Sabri said the fund size for the two schemes amounting to RM300 million.
“For companies that are viable but have constraints on obtaining new funds, the government and financial institutions have devised a new, more flexible form of financing to expand the ability to revive the business.
“One of them is through equity crowdfunding and peer-to-peer financing, which will be supported by an allocation of RM80 million in matching grants for the Malaysia Co-investment Fund, in addition to the investment by Bank Pembangunan Malaysia Bhd (BPMB) of RM100 million,” he said.
To help companies facing high indebtedness or gearing problems, Ismail Sabri said funding methods in excess of RM2.2 billion through equity and quasi-equity investments would also be available.
He said the method was spearheaded by SME Bank with a fund of RM600 million, while BPMB would offer the RESET Scheme, or Rehabilitation and Support Through Equity, with a fund size of RM500 million.
“Bank Negara Malaysia (BNM) has also provided a Business Recapitalisation Facility worth RM1 billion for the same purpose. Cumulatively, a total of RM14.2 billion in funds is available to SMEs.
“For the continued availability of funds, BNM’s special funds, especially the Targeted Relief and Recovery Facility and Agrofood Facility have been collectively increased by RM2.5 billion to RM10 billion. The total amount available from various BNM SME funds is currently at RM10 billion,” he said.
The Prime Minister said the scheme under Syarikat Jaminan Pembiayaan Perniagaan (SJPP) would provide guarantees for scheduled and restructured financing with a guarantee limit of RM22 billion, targeted to help companies secure new financing that was previously difficult to obtain.
“I would like to emphasise that these initiatives do not take into account the improvements to the Keluarga Malaysia Flood Relief for the affected MSMEs that I have announced recently.
“Obviously, the Semarak Niaga Keluarga Malaysia Programme and the Keluarga Malaysia Flood Relief reflect the principle of Keluarga Malaysia where no one would be marginalised,” he said.
He said the Semarak Niaga Keluarga Malaysia Programme would complement the government’s efforts through the financial sector in providing financing facilities and loan repayment assistance, especially in the post-pandemic recovery phase.
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