Business

BNM announces additional RM4 bil allocation for SMEs

It also puts RM2 bil towards its Targeted Relief and Recovery Facility for refinancing

Updated 5 years ago · Published on 02 Jul 2021 11:45PM

BNM announces additional RM4 bil allocation for SMEs
Bank Negara Malaysia has increased the allocation for the All Economic Sector Facility by RM2 billion, bringing the facility’s total allocation to RM6.5 billion as announced by Prime Minister Tan Sri Muhyiddin Yassin. – Bank Negara pic, July 2, 2021

KUALA LUMPUR – Bank Negara Malaysia (BNM) has enhanced several facilities under its Fund for Small and Medium Enterprises (SMEs), geared at providing relief for the SMEs.

In a statement today, the central bank announced the additional allocation of RM4 billion, and RM2 billion for the Targeted Relief and Recovery Facility (TRRF), bringing the total allocation for the facility to RM6 billion.

TRRF aims to provide relief for and support the recovery of SMEs in the services sector.

BNM also increased the allocation for the All Economic Sector Facility by RM2 billion, bringing the facility’s total allocation to RM6.5 billion as announced by Prime Minister Tan Sri Muhyiddin Yassin.

“TRRF and Penjana Tourism Financing (PTF) have been enhanced to allow SMEs to utilise part of the financing proceeds to repay existing business loans, namely refinancing,” it said.

The maximum amount that can be used for refinancing is up to 30% of the financing approved under TRRF, and up to 50% of the financing approved under PTF, said the central bank.

Additionally, recipients of the Special Relief Facility and Penjana SME Financing are also eligible to apply for PTF, for up to RM300,000 per SME.

PTF aims to support SMEs in the tourism sector by preserving their capacity and assisting them to adjust and remain viable post-pandemic. 

Interested SMEs can directly apply for these facilities from participating financial institutions, said BNM.

They may also refer to bnm.gov.my/covid19 or contact BNM at bnm.my/LINK for more information on the financing facilities. – Bernama, July 2, 2021

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