Establishment of RM1 billion High Tech Facility – National Investment Aspirations (HTF-NIA)

As announced in the Budget 2021 speech by the Minister of Finance, Bank Negara Malaysia (BNM) is establishing a RM1 billion High Tech Facility – National Investment Aspirations (HTF-NIA), as part of efforts to provide additional assistance for SMEs affected by COVID-19. The facility is aimed at supporting high-tech and innovation-driven SMEs affected by COVID-19 to recover and revitalise the nation’s innovation capacity. This is critical to strengthen Malaysia’s competitive positioning in global value chains, preserve the supply chain ecosystem and safeguard high-skilled jobs.

Eligible SMEs include:

• Those in advanced manufacturing and services sectors that are best aligned to deliver the overarching national strategic long-term development goals, as embedded in the NIAs^[1]. Examples include businesses in the E&E, aerospace, pharmaceuticals and ICT sectors, as well as R&D driven firms supporting the development of emerging technologies;

or

• SME project participants in key Government programmes involved in research, development and innovation for critical technologies identified under national blueprints, from IR4.0-related technologies^[2], green technology and biotechnology, to ensure their continuity and completion of those existing projects.

The features of the facility are detailed in Appendix 1.

Eligible SMEs can obtain financing of up to RM1 million for working capital purposes; up to RM5 million to finance capital expenditure; or a combination of working capital and capital expenditure up to RM5 million, for a tenure of up to 7 years.

This facility is offered at a financing rate of up to 3.5% per annum for financing without guarantee or up to 5% per annum inclusive of guarantee fee (with guarantee coverage by Credit Guarantee Corporation Malaysia Berhad (CGC).

The facility will be available from 15 December 2020 to 31 December 2021 or until it is fully utilised (whichever is earlier).

Interested SMEs can apply directly to participating financial institutions, which comprise commercial banks, Islamic banks and development financial institutions regulated by BNM through their websites or by visiting their branches. Further details on the features and list of participating financial institutions for HTF-NIA are outlined in Appendix 1 and Appendix 2.

SMEs in other sectors can access the various facilities available under BNM’s Fund for SMEs. Details on these funds are available at www.bnm.gov.my/covid19/.

^[1] The National Investment Aspirations (NIAs) refer to overarching strategic developmental objectives to increase economic complexity, create high-value jobs, extend domestic industry linkages and develop new and existing clusters. Further details on the NIAs can be obtained in “Securing Future Growth through Quality Investments” in the BNM Economic & Monetary Review 2019 publication (pages 41 - 42) at www.bnm.gov.my/ar2019/files/emr2019_en_box1.pdf.

^[2] These technologies range from blockchain, AI, big data analytics, internet of things (IoT), additive manufacturing (3D/4D/5D/6D printing), cybersecurity, system integrators, augmented reality, advanced materials, drones and manufacturing systems, as well as bioscience technology and neurotechnology.