Bank Negara Malaysia (BNM) has allocated funds under BNM’s Fund for SMEs to provide support for SMEs in sustaining business operations, safeguard jobs and encourage domestic investments. Interested SMEs may access the following financing facilities:
Special Relief Facility (SRF), to help alleviate the short-term cash flow problems faced by SMEs adversely affected by the COVID-19 outbreak. (CLOSED FOR NEW APPLICATIONS)
All Economic Sectors (AES) Facility, to enhance access to financing for SMEs and to support growth.
Agrofood Facility (AF), to increase food production for Malaysia and for export purposes.
SME Automation and Digitalisation Facility (ADF), to incentivise SMEs to automate processes and digitalise operations to improve productivity and efficiency.
Micro Enterprises Facility (MEF), to increase access to collateral-free financing for micro enterprises.
Explore the complete features of, and qualifying requirements for BNM Funds for SMEs.
How to apply for the financing:
Interested SMEs may call or email the participating financial institutions (PFIs) -- commercial banks, Islamic banks and development financial institutions regulated by BNM -- to apply for the financing.
SMEs may also visit the business financing referral platform at imSME.com.my to apply for the financing.
SMEs may also avail themselves to Credit Guarantee Corporation Malaysia Berhad’s (CGC) BizMula-i and BizWanita-i schemes for financing of up to RM300,000. cgc.com.my
Participating financial institutions may obtain guarantee coverage from the Credit Guarantee Corporation Malaysia (CGC) or Syarikat Jaminan Pembiayaan Perniagaan (SJPP) for these facilities.
To ease the cash flow of Small & Medium Enterprises (SMEs), including the self-employed, that are likely to be the most affected by Covid-19, banking institutions will provide an automatic deferment of all loan/financing repayments for a period of 6 months, with effect from 1 April 2020. This offer is applicable to performing loans, denominated in Malaysian Ringgit, that have not been in arrears for more than 90 days as at 1 April 2020.
For credit card facilities, banking institutions will offer to convert the outstanding balances into a 3-year term loan with reduced interest rates to help borrowers better manage their debt.
It is important to note that the interest/profit will continue to accrue on loan/financing repayments that are deferred and borrowers will need to honour the deferred repayments in the future. Borrowers should therefore ensure that they understand and discuss with their banking institutions on the options available to resume their scheduled repayments after the deferment period.
SMEs that do not wish or need these flexibilities may continue with their current repayment structures, by informing their banks.
The Bank has provided appropriate time-bound flexibilities for banking institutions to report deferred/restructured facilities in the Central Credit Reference Information System (CCRIS), taking into account the temporary nature of disruptions faced by borrowers/customers.
Deferment of payment of life insurance premiums and family takaful contributions
Life insurers and family takaful operators will allow affected policyholders and takaful participants* an option to defer the regular premium/contribution payments due under life insurance policies and family takaful certificates for three months without affecting the policy coverage. This flexibility may be provided by life insurers and family takaful operators through a no-lapse guarantee, an extension of grace period or any other means that maintain the policy/certificate intact during the deferment period. This option will be available from 1 April 2020 until 31 December 2020.
[*] Refers to individuals who have been infected, home quarantined or suffered a loss of income, as a result of the economic impact of the COVID-19 situation. Examples of events that lead to such loss of income include retrenchment, shorter working hours and salary or commission reductions for individuals.
Extension of flexibilities to reinstate or preserve life insurance and family takaful protection
Life insurers and family takaful operators will also provide the following assistance to the affected policyholders and takaful participants until 31 December 2020:
i. Extend the period during which a policyholder and takaful participant can reinstate a policy/certificate that has lapsed;
ii. Provide options to enable policyholders and takaful participants to continue to meet their premium/contribution payments and maintain their policies/certificates. This may include changes in the sum assured/covered, adjustments to the premium/contribution structure and conversion into a paid up policy;
iii. Waive fees and charges imposed for changes made to policies/certificates; and
iv. Waive any penalties/consequences for late payments of premiums/contributions, particularly where policyholders/takaful participants are unable to access electronic payment channels during the Movement Control Order.
Flexibility to meet general insurance premiums and general takaful contributions
General insurers and general takaful operators will facilitate requests for flexibilities by affected policyholders and takaful participants to meet their premiums/contributions due during this period to ensure continued risk protection for their properties and businesses. This may include working with policyholders/takaful participants to restructure their policies/certificates so as to reduce the amount of premiums/ contributions payable.
Expedited claims processing
All insurers and takaful operators will expedite and facilitate claims processes related to COVID-19. Priority will be given to the issuance of guarantee letters, waivers of applicable waiting periods and processing of claims payments.
Policyholders and takaful participants are advised to contact their insurers and takaful operators to avail of these flexibilities provided to manage their policies and certificates.
BNM has published and updated a set of Frequently Asked Questions on the insurance and takaful measures, to help individuals better understand the details of the measure.
- Read FAQ (dated 29 March 2020)
Please contact your financial institutions for further information on your specific case.
If you have contacted them and are unsatisfied with their response, you may lodge a complaint or put forward a query to BNMTELELINK.