BNM introduces RM5b financing facility to support SMEs

 

Bank Negara Malaysia has introduced the SME Stabilisation Relief Facility (SME SRF), a RM5 billion financing facility to assist SMEs, including microenterprises, affected by the ongoing conflict in West Asia.

The central bank said eligible SMEs may obtain financing of up to RM750,000 for a tenure of up to five years, at a maximum financing rate of 3.75 percent per annum, inclusive of a guarantee fee.

“The financing will be supported by guarantees of up to 80 percent from Credit Guarantee Corporation Malaysia (CGC) or Syarikat Jaminan Pembiayaan Perniagaan (SJPP), particularly for SMEs without sufficient collateral,” it said in a statement today.

As announced by Prime Minister Anwar Ibrahim at the roundtable discussion with CEOs of financial institutions on April 21, the SME SRF will provide timely working capital support to help viable businesses sustain operations and navigate this period of uncertainty.

BNM said applications for the SME SRF will be open from May 15 until Dec 31, or until full utilisation.

SMEs may apply directly through participating financial institutions, including commercial banks, Islamic banks and development financial institutions regulated by BNM.

“In the current environment, BNM strongly encourages businesses that anticipate or are already experiencing financial difficulties to engage early with their financial institutions.

“Proactive action enables banks to work with borrowers to identify suitable solutions, including repayment flexibility, restructuring of financing facilities, or other tailored support measures to help businesses remain viable,” the central bank said.

In addition, SMEs may seek financial advisory, financial education support, and holistic debt repayment assistance from the Credit Counselling and Debt Management Agency - through the Debt Management Programme for individuals and sole proprietors, and the Small Debt Resolution Scheme for SMEs.

- Bernama