KUALA LUMPUR – Prime Minister Datuk Ismail Sabri Yaakob is slated to launch the SemarakNiaga Keluarga Malaysia programme here today, an umbrella initiative responsible for providing financing schemes that include direct loans, financial guarantees, and equity injection.
It is aimed at benefiting entrepreneurs of all levels, especially those who have been adversely affected by the restrictions imposed during the height of the pandemic.
One of the ongoing initiatives under SemarakNiaga is the Informal and Micro-Financing Scheme under the purview of the National Entrepreneur Group Economic Fund.
YAB Prime Minister, can you elaborate more on the SemarakNiaga Keluarga Malaysia programme?
The SemarakNiaga Keluarga Malaysia Programme is the government’s commitment to help businesses recover, as well as regain their capabilities and competitiveness following the Covid-19 pandemic, particularly for micro, small, and medium enterprises (MSMEs).
To this end, a total of RM40 billion has been allocated through Budget 2022, which includes various forms of financing, including equity injections.
This SemarakNiaga initiative also reflects the spirit of Keluarga Malaysia, with measures that are open to the entire business community, from micro-enterprises to publicly listed companies.
However, we know that MSMEs are most impacted by the Covid-19 pandemic. They must be supported, whether it is through financing schemes such as direct loans or matching grants, to empower them to restart their business.
Under SemarakNiaga, we also have RM22 billion worth of guarantee by Syarikat Jaminan Pembiayaan Perniagaan (SJPP), including RM2 billion specifically for Bumiputeras. This makes it easier for SMEs to apply for new financing that may otherwise be difficult to obtain.
How can the SemarakNiaga Keluarga Malaysia programme help in the country's economic recovery efforts?
Through SemarakNiaga, we want to ensure that the country is on a strong economic recovery path. The Covid-19 pandemic, which has led to uncertainties in the economy, is still impacting the entire business community.
Thousands of businesses were forced to close. Most certainly, they will find it difficult to restart their business or continue operations, particularly if they have a large amount of debt or liabilities.
Hence, SemarakNiaga not only supports businesses by providing working capital injections or financing, but also through equity injections (or taking up shares or an equity stake in a company) for businesses affected by the Covid-19 pandemic.
This (taking up equity stake) is a novel and innovative solution that has never been implemented before. The government is confident that this initiative will help entrepreneurs recover and move forward.
By providing assistance and support to the business community, as companies recover and grow, we are also creating more job opportunities while also restoring the livelihoods of Keluarga Malaysia. This will reduce the unemployment rate, which the government targets to be less than 4% by year-end.
In fact, we are already building on past achievements: the Statistics Department and Bank Negara recently announced that the Malaysian economy grew by 3.1% in 2021, compared to a 5.6% contraction in 2020.
Therefore, the government is confident that job creation and business empowerment efforts through Budget 2022 will contribute to this year’s projected GDP growth of 5.5% to 6.5%.
Can YAB Prime Minister provide a breakdown of the over RM40 billion allocated for the SemarakNiaga Keluarga Malaysia programme?
The allocation of more than RM40 billion for the SemarakNiaga Keluarga Malaysia programme in Budget 2022 consists of RM1.8 billion in micro-credit loans; RM2.2 billion in equity/alternative financing; RM14.2 billion in SME soft loans; and RM22.0 billion in guarantees through SJPP.
As mentioned, all levels of businesses, from micro/small to large and those listed on Bursa, can benefit from measures in the SemarakNiaga initiative in Budget 2022. In fact, for MSMEs, the government has never before provided such a sizable RM1.8 billion in funding, with a moratorium feature of up to 12 months.
What role can agencies in Malaysia play in ensuring the success of the SemarakNiaga Keluarga Malaysia initiative?
Government agencies, the private sector, NGOs, GLCs, and GLICs should collaborate with the government to help execute this SemarakNiaga initiative for the well-being of Keluarga (Perniagaan) Malaysia.
Such collaboration will create various job opportunities to help the rakyat rebuild their lives, provide support to affected businesses, and strengthen the country’s social protection system.
Overall, the government is confident this initiative will contribute to Keluarga Malaysia’s recovery and the country’s socio-economic development in a more balanced, inclusive, and sustainable manner.
What are the overarching objectives of the SemarakNiaga Keluarga Malaysia programme?
The first objective is to maintain the recovery momentum that we achieved throughout the fourth quarter of 2021. The government, through the relevant agencies, has crafted alternative financing and financing schemes for MSMEs and other affected businesses, allowing them to recover and generate revenue once more. This includes initiatives to help most impacted sectors such as tourism, retail, and entertainment.
The second objective is to build business resilience, which includes helping them develop their workers’ skills. This is also related to the JaminKerja initiative I launched on February 19.
The third objective is to enable reforms that will help the country transition towards an economy that is sustainable, as well as enabled by Digital Transformation and IR4.0. Efforts towards digital enablement include grants for SME digitalisation and smart automation, matching grants to accelerate digital transformation; as well as assistance for the gig economy players and start-ups to better navigate the world of commerce and business.
I would also like to highlight that SemarakNiaga is also complemented by other Budget 2022 initiatives, particularly those aimed at facilitating business. This includes preparing businesses for post-Covid-19 operational requirements. For example, the government will extend the tax deduction for renovation costs of up to RM300,000 to support standard operating procedure compliance, such as improving ventilation systems; and provide additional tax deduction of up to RM50,000 on employee housing rental expenses.
Budget 2022 will also focus on strengthening the country’s position as a competitive investment destination. This includes promoting more strategic investments. For example, we have a special strategic investment fund to attract foreign investment from multinational companies (RM2 billion); Smart Automation matching grants for 200 manufacturing and service companies (RM100 million); and skills/training programmes to train 20,000 workers to support specific industry clusters (RM80 million).
How can MSMEs obtain the schemes offered under the SemarakNiaga Keluarga Malaysia programme?
I encourage the business community to seize these opportunities to help them recover and get back on their feet, which, in turn will support the country's socio-economic recovery efforts.
Entrepreneurs and business owners are encouraged to visit the Budget 2022 portal at https://budget.mof.gov.my/manfaat. This interactive portal provides various information on the schemes and benefits available under SemarakNiaga.
Moving forward, the government remains committed to help businesses recover, as well as improve their resilience and competitiveness, particularly for the MSMEs. – The Vibes, February 21, 2022
The interview is provided through the courtesy of the Prime Minister’s Office
