Give SMEs 3-month moratorium on loan repayments, says group

 

A flooded supermarket in Shah Alam. The Small and Medium Enterprises Association says many of its members have reported losses running into millions of ringgit. (Twitter pic)

PETALING JAYA: The Small and Medium Enterprises Association (Samenta) has called on the government to give SMEs affected by the country’s worst floods in recent memory a three-month moratorium on loan repayments.

Stating that it stands in solidarity with the thousands of SMEs that have been affected by the disaster, Samenta chairman William Ng said that many of its members had reported severe damage to vehicles, machinery and stocks, with some running into millions of ringgit.

Ng said the floods had happened at the “most inopportune time” as SMEs were only just getting back on their feet after the long lockdowns. He said Samenta’s initial estimates were that between 12,000 and 18,000 SMEs were affected by the floods.

“We thank the government, through Bank Negara Malaysia (BNM), for offering up to RM500,000 in soft loans to SMEs affected by the floods,” he told FMT.

“We urge the government to take the step further by announcing a three-month interest-free moratorium on repayment of loans for affected SMEs.”

Ng also urged the government and the police to ensure that the reported looting of shops and warehouses was not repeated, after Shah Alam police yesterday confirmed that several convenience stores in flood-hit Taman Sri Muda were looted.

BNM yesterday announced the availability of RM200 million in financing facilities for micro and small and medium enterprises (MSMEs) affected by the floods nationwide under the Disaster Relief Facility 2022 (DRF 2022).

In a statement, it said that DRF 2022 – with a financing rate of up to 3.5% per annum – could be used to cover the costs of repairs or replacement of assets for business use, such as plants and machinery damaged by floods. The amount could also be used for working capital.

SMEs may borrow up to RM500,000 while micro enterprises may borrow up to RM75,000. The financing tenure of up to five years includes a moratorium period of six months on both principal and interest/profit payments.

The government has also announced other measures to help SMEs affected by the floods, such as RM5,000 in interest-free financing through Bank Simpanan Nasional and RM30 million in loans under Tekun Nasional. - FMT