KUALA LUMPUR – Billions of ringgit in aid to businesses to get them back on track from the adverse impact of the Covid-19 pandemic has been allocated under Budget 2022.
Finance Minister Datuk Seri Tengku Zafrul Tengku Abdul Aziz in his budget speech this evening announced the Semarak Niaga Keluarga Malaysia programme involving a RM40 billion financing package for entrepreneurs from small to big businesses.
“These financing schemes include direct loans, financing guarantees, and equity injections with the aim of benefiting every group of entrepreneurs, whether micro-enterprises or public-listed companies,” he said.
Besides Semarak Niaga Keluarga Malaysia, Tengku Zafrul said additional financing of RM1.8 billion will also be provided through Tekun, Agrobank, Bank Simpanan Nasional (BSN), Bank Rakyat and Bank Negara Malaysia (BNM).
“Thus, the Informal and Micro Financing Scheme under Tekun will offer loans of up to RM10,000 at an interest rate of 0% with a moratorium for 12 months with priority given to informal and micro sector traders.
“Apart from that, BSN and Agrobank will also offer microloans of up to RM75,000 at a rate of 0% for the first six months with a moratorium facility of up to six months,” he said.
A specific initiative to help companies listed on the local exchange will also be introduced through additional funds by a government-owned special-purpose vehicle in the form of equity instruments or other related instruments to help companies that are viable but affected by the Covid-19 pandemic.
“For this purpose, Khazanah Nasional Bhd will be given the mandate to assist the government in providing the infrastructure to administer a fund of at least RM3 billion,” he said.
Meanwhile, for the small and medium enterprises (SMEs), and encouraging crowdfunding and peer-to-peer financing which blossomed during the pandemic, Tengku Zafrul announced an allocation of RM80 million in matching grants for Malaysia Co-investment Fund.
This is in addition to the investment by Bank Pembangunan Malaysia Bhd (BPMB) of RM100 million.
In tandem with this, Tengku Zafrul also announced a funding method worth RM2.1 billion through equity and quasi-equity investments which will be introduced to assist companies facing gearing or leverage problems.
“This method will be led by SME Bank in collaboration with Teraju and BSN with a fund of RM600 million and is open to all, especially Bumiputera entrepreneurs.
“In addition, BPMB will also offer a Reset Scheme (or Rehabilitation and Support Through Equity) and BNM will also provide a Business Recapitalisation Fund worth RM1 billion for the same purpose.
“In total, a total of RM14.2 billion of funds is available to SMEs,” he said. – The Vibes, October 29, 2021
