SMEs to get access to new RM50m capital financing fund
SMEs to get access to new RM50m capital financing fund
Malaysia’s small and medium-sized businesses affected by the Covid-19 pandemic are being invited to apply to a new RM50 million ($12m) fund for financing.
SME Bank recently signed an agreement with SME Corporation Malaysia (SME Corp) to offer fixed working capital financing under the Working Capital@BAP scheme for small and medium-sized firms.
The Minister of Entrepreneur Development and Cooperative, Noh Omar, said the government, through SME Corp, had provided a fund of RM151.5 million ($36m) for the BAP Programme, since its introduction in 2011, and SME Bank had acted as the agency that managed and distributed these funds, the Malaysian Star website has reported.
He said: “The government is optimistic that 2022 will be the year for the SME sector to continue to rise and improve its growth trajectory.
“This is supported by the Budget 2022, which allocates RM14.2 billion ($4m) for the SME sector as well as the National Recovery Plan (PPN), which focuses on driving economic recovery, ensuring sustainability and at the same time, driving technological improvement and innovation.”
‘Many SMEs need injection of funds’
SME Corp chief executive officer Rizal Nainy said there are still many SMEs that needed an injection of funds to enable them to continue to operate during and post-Covid-19 pandemic.
“This fixed working capital financing is intended to help pandemic-affected SMEs continue to operate by facilitating the process of obtaining financing through the use of a simpler valuation format and focus on the type of financing required,” he said.
Meanwhile, SME Bank group president/chief executive officer Aria Putera Ismail said as the agency responsible for managing the fund, SME Bank has approved financing to 542 companies with a financing value of RM247.35 million ($59m) since 2011.
“SME Bank and SME Corp have agreed to provide flexibility to SMEs to use this RM50 million fund for fixed working capital financing which includes operating expenses, salaries and others.
“The total financing is up to RM500,000 for each company with a profit rate of 4% per annum,” he added.
Meeting the requirements
The BAP programme is open to all SMEs who meet the requirements, which includes having an SME registration status certificate, fulfilling the SME definition and having passed or are ready to go through the SCORE/MCORE assessment by SME Corp.
- Full information on the Working Capital@BAP facility can be found on the www.smebank.com.my website or www.smecorp.com.gov.my or by calling the SME Bank Customer Service Center at 03-26037700.
