B1. BNM Fund for SMEs 2021-10-29
1. BNM's Fund for SMEs
Bank Negara Malaysia has established additional or enhanced existing financing facilities to provide relief for, and to support the recovery of SMEs. Following the Budget 2022 announcement, the Bank is committed to further increase the allocation under the BNM's Fund for SMEs by RM4.5 billion, bringing the total available funds as at mid-September 2021 to RM11.2 billion.
Select a facility according to your business needs.
Targeted Relief and Recovery Facility (TRRF)
The RM6 billion Facility is upsized by RM2 billion to RM8 billion for affected SMEs in the services sector. Under the enhanced TRRF, SMEs can now utilise up to 30% of the financing approved to repay existing business financing (i.e. refinance).
Offered at a rate of up to 3.5% p.a., TRRF will be available through participating financial institutions, with guarantee coverage by Credit Guarantee Corporation (CGC) or Syarikat Jaminan Pembiayaan Perniagaan (SJPP).
The Facility is available until 30 June 2022 or full utilisation (whichever is earlier).
High Tech Facility – National Investment Aspirations (HTF-NIA)
The RM800 million Facility is aimed at supporting high-tech and innovation-driven SMEs affected by COVID-19 to recover and revitalise the nation’s innovation capacity. Financing rate of up to 3.5% per annum is offered 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 is available now until 30 June 2022 or full utilisation (whichever is earlier).
SME Automation and Digitalisation Facility (ADF)
The RM1 billion Facility is aimed at incentivising SMEs to automate processes and digitalise operations to improve productivity and efficiency. The financing rate is up to 4% per annum, inclusive of guarantee fee. Guarantee coverage is provided by Syarikat Jaminan Pembiayaan Perniagaan (SJPP).
The Facility will be available until 30 June 2022 or full utilisation, whichever is earlier.
All Economic Sectors (AES) Facility
This facility is to enhance access to financing for SMEs and to support growth.
Agrofood Facility (AF)
The Facility is to increase food production for Malaysia and for export purposes. Following the Budget 2022 announcement, for agrofood production, the allocation of the Agrofood Facility has been increased by RM500 million, resulting in a total allocation RM2 billion.
Business Recapitalisation Facility (BRF)
Under this Facility, RM1 billion is allocated to support SMEs to grow, without increasing their indebtedness during the recovery phase. Participating financial institutions, particularly the Development Financial Institutions, may either offer:
(a) financing in the form of equity, or;
(b) debt financing combined with equity in partnership with third-party equity financiers (blended finance).
Details are still being finalised and this new Facility will be available beginning January 2022.
Low Carbon Transition Facility (LCTF)
A RM1 billion Facility established on a matching basis with participating financial institutions to help SMEs embrace sustainable and low carbon practices in their business operations. This includes to increase usage of sustainable raw materials and renewable energy, and to also improve energy efficiency of buildings or machinery.
Further details will be available beginning January 2022.
PENJANA Tourism Financing
PENJANA Tourism Financing is established for affected businesses in the tourism sector. The Government has created a dedicated fund for businesses in the tourism sector still affected by the pandemic under the PENJANA initiative.
Under the enhanced PTF, SMEs can now utilise up to 50% of the PTF financing amount obtained to refinance existing business financing. Recipients of Special Relief Facility (SRF/SRF-i) and/or PENJANA SME Financing (PSF/PSF-i) are now eligible for the PTF.
Other Relief Measures by the Government
In addition to the BNM's Funds, SMEs may also access financing facilities and other assistance measures introduced by the Government.
Details may be obtained at the SMEinfo portal.
B2. Loan Repayment Assistance
2. Loan Repayment Assistance
Banks are committed and ready to help individuals and SMEs, including microenterprises affected during the Movement Control Order with the latest Repayment Assistance packages.
To obtain this Repayment Assistance, borrowers can contact their respective banks and select their preferred loan repayment options.
Details are available on the Loan Repayment Assistance page.
B3. URUS Programme
3. Financial Management & Resilience Programme (URUS)
URUS is a holistic assistance package to assist vulnerable borrowers impacted by COVID-19 who continue to experience cash flow difficulties. It offers repayment assistance and development support, including personalised financial plans, financial education programmes and avenues to supplement incomes and obtain other development support via referrals to AKPK’s Social Synergy Network..
Details are available on the URUS Programme page.
B4. Other Pandemic Counter-Initiatives 2021-10-29
4. Other Initiatives for Individuals and SMEs
Further details of these initiatives, where applicable, will be issued by the respective banking and insurance associations.
Expanded iTEKAD programme to support a larger group of micro-entrepreneurs
The Government has allocated RM20 million in Budget 2022 to augment the seed capital component of iTEKAD programme, to assist micro-entrepreneurs from the low-income groups in growing their business sustainably.
Perlindungan Tenang: Protection for B40
Perlindungan Tenang products are basic insurance and takaful plans that offer financial protection against death, accidents, losses arising from fire or flood, as well as other unfortunate events.
Assistance by insurers & takaful operators to policyholders adversely affected by the COVID-19 pandemic.
Measures include deferment on life insurance premiums/family takaful contributions, flexibilities to preserve/reinstate policies, flexibilities to meet general insurance premiums/takaful contributions, and expedited claims processing. More...
4. RA Videos
B5. Tips for SMEs
Tips for SMEs
These are collection of short videos excerpted from the webinars BNM has conducted