PEMERKASA: Additional RM500m allocation for SME, micro business financing

PEMERKASA: Additional RM500m allocation for SME, micro business financing

17 Mar 2021

An additional RM500 million will be allocated for micro, and small and medium enterprise (SME) financing facilities under Bank Simpanan Nasional (BSN), TEKUN Nasional, MARA and SME Corp, under the PEMERKASA stimulus package.

According to Prime Minister Tan Sri Muhyiddin Yassin, RM300 million will be channelled via BSN with a funding limit of RM50,000 at a reduced interest rate of 3% from 3.5% previously.

The loan period will be for five years, while the instalment payments will only start after the sixth month.

For entrepreneurs in the informal sector, TEKUN will provide additional funding of RM60 million, primarily through the Informal Funding Scheme with a financing limit of RM5,000 for small-scale businesses operating from home and night markets.

Meanwhile, the TEKUN Mobilepreneur programme will be expanded to include the financing for new purchases or repairs of motorcycles with a limit of up to RM10,000.

A 100% exemption of excise duties on locally assembled 150cc and below motorcycles will be given, starting April 1 until Dec 31, 2021.

TEKUN will also launch the TEKUN POS-preneur programme, whereby applicants will be able to generate income through delivery contracts. Financing assistance of up to RM20,000 will be provided for the purpose of vehicle repairs, and up to RM50,000 for purchases of vans or lorries.

Meanwhile, RM50 million will be channelled via MARA’s Micro Prihatin Business Financing Scheme, targeted to assist 1,000 Bumiputera micro SMEs to ensure business continuity, with a financing limit of RM50,000 at an interest rate of 3%.

Additionally, SME Corp will provide RM50 million to assist local SMEs in obtaining funding of up to RM250,000 at an interest rate of 3%.

Bank Negara Malaysia has also increased the Targeted Assistance and Rehabilitation Facility by RM2 billion and the Automation and Digitisation Facility by RM700 million to assist SMEs in obtaining loans.

Moreover, an additional RM50 million in funding will be provided under the Malaysian Investment Development Authority (MIDA)’s Smart Automation Grant, to encourage more SMEs and mid-tier companies to leverage technology to improve their operational efficiency.

RM50 million will also be allocated to the Industry4WRD programme under the Ministry of International Trade and Industry.

Source: The Edge Markets