To assist businesses and households impacted by the COVID-19 outbreak, Bank Negara Malaysia (BNM) is allocating RM3.3 billion of financing facilities under BNM’s Fund for SMEs to provide support for SMEs in sustaining business operations, safeguard jobs and encourage domestic investments. 

Interested SMEs can access the following three financing facilities:

• Special Relief Facility (SRF), with an allocation of RM2 billion, to help alleviate the short-term cash flow problems faced by SMEs adversely affected by the COVID-19 outbreak. Eligible SMEs can obtain financing of up to RM1 million for a tenure of up to 5.5 years, including a 6-month grace period. The financing rate is capped at 3.75% p.a. The SRF is available from 6 March 2020 to 31 December 2020.
• Agrofood Facility (AF), with an allocation of RM1 billion, to increase food production for Malaysia and for export purposes. Eligible SMEs can obtain financing of up to RM5 million for a tenure of up to 8 years. The financing rate is capped at 3.75% p.a. The AF is available from 6 March 2020 onwards.
• SME Automation and Digitalisation Facility (ADF), with an allocation of RM300 million, to incentivise SMEs to automate processes and digitalise operations to improve productivity and efficiency. Eligible SMEs can obtain financing of up to RM3 million for a tenure of up to 10 years. The financing rate is at 4.00% p.a. The ADF is available from 6 March 2020 to 31 December 2020.

Interested SMEs can apply directly to participating financial institutions which comprise commercial banks, Islamic banks and development financial institutions regulated by BNM. They may also apply online through the business financing referral platform at imsme.com.my.

Participating financial institutions can obtain guarantee coverage from the Credit Guarantee Corporation Malaysia (CGC) or Syarikat Jaminan Pembiayaan Perniagaan (SJPP) for these facilities.

Continued Financing and Support from Financial Institutions
Financial institutions have also committed to support affected businesses and households. Broader access to financing continues to be readily available. Financial institutions expect to approve about RM200 billion of business and home financing to eligible SMEs and households in 2020.

BNM welcomes efforts by financial institutions to proactively assist viable businesses and households that face temporary financial constraints to restructure and reschedule their financing facilities, including through repayment moratoriums. Insurance and takaful operators have also affirmed that policyholders will be covered for hospital admissions and treatment related to COVID-19 at both public and private hospitals.

Members of the public are advised to contact the customer service centres of financial institutions directly for enquiries or assistance. The public may also contact Bank Negara Malaysia's TELELINK at 1-300-88-5465 for additional information or assistance.

• FAQs on Financing Facilities to Assist Businesses Affected by COVID-19

Features of BNM’s Financing Facilities to Assist Malaysian SMEs