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Measures to Assist Businesses and Households Affected by the COVID-19 Outbreak

Ref No : 02/20/07 27 Feb 2020 Embargo : For immediate release    

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.

Features of BNM’s Financing Facilities to Assist Malaysian SMEs 

 

Special Relief Facility (SRF)

Agrofood Facility (AF)

SME Automation and Digitalisation Facility (ADF)

Allocation

RM2 billion

RM1 billion

RM300 million

Objective

Alleviate short-term cash flow problems faced by SMEs adversely affected by the COVID-19 outbreak

Increase food production for Malaysia and for export purposes

Incentivise SMEs to automate processes and digitalise operations to increase productivity and efficiency

Eligibility

Malaysian SMEs[1] adversely affected by COVID-19

Malaysian SMEs

Malaysian SMEs

Purpose

Working capital

  • Capital expenditures
  • Working capital
  • Development of agriculture projects

Purchase of equipment, machinery, computer hardware and software, IT solutions and services, technology support services and other intangible assets to enhance productivity and efficiency

Financing rate

Up to 3.75% p.a. (inclusive of any guarantee fee)

Up to 3.75% p.a. (inclusive of any guarantee fee)

4% p.a. (inclusive of any guarantee fee)

Maximum financing amount

RM1 million per SME

RM5 million per SME

RM3 million per SME

Maximum tenure

5.5 years, including 6 months moratorium on repayments

8 years

10 years

Availability

6 Mar 2020 to
31 Dec 2020

From 6 Mar 2020 onwards

6 Mar 2020 to 31 Dec 2020

 

[1] SME definition by SME Corp, with at least 51% shares held by Malaysians.

Bank Negara Malaysia
27 Feb 2020

© Bank Negara Malaysia, 2020. All rights reserved.