RM100 million Selangor fund to help small firms

The Selangor state government is to help provide business financing for small firms.

SHAH ALAM: The Selangor state government has introduced the Selangor Advance financing scheme with a start-up fund of RM100 million to assist small and medium enterprises, especially contractors and service providers in facing economic challenges after the Covid-19 crisis.

Menteri Besar Amirudin Shari said the initiative was aimed at helping business owners to have sufficient funds to ensure their business continuity.

Through the initiative, he said the payment for the work done would be expedited to the contractors and service providers.

“Selangor Advance will first be introduced to those providing services to the state government or government-linked companies before it is extended to businesses that are dealing with local authorities.

“A total of RM100 million has been allocated for the financing initiative under the state’s economic stimulus package, the Selangor Cares Package 2.0, which was announced on April 1,” he said in a statement here.

Amirudin said the initiative was formulated based on a syariah-compliant financing concept to help the SMEs increase their cash flow.

“We hope that the initiative would enable businesses to continue to thrive in the current economic landscape,” he said, adding that the registration for Selangor Advance is from July 1. - FMT