KUALA LUMPUR – The government has channelled RM7.15 billion to 26,119 small and medium enterprises (SMEs) under the Targeted Relief and Recovery Facility (TRRF) as of July 6.
Finance Minister Datuk Seri Tengku Zafrul Tengku Abdul Aziz said 41,978 applications for the financing facility had been received as of July 6.
He added that the government had increased the allocation for the facility to RM8 billion from RM6 billion previously to assist SMEs in the services sector.
“Under the enhanced TRRF, SMEs can use up to 30% from the approved financing to pay back their existing business financing.
“The financing size offered is up to RM500,000 for each SME and RM75,000 for micro-SMEs, with an interest rate up to 3.5% a year, including guarantee fees,” he said, adding that the repayment period is up to seven years, with a moratorium of at least six months.
In the 109th Laporan Kewangan Rakyat issued today, the finance minister said the TRRF is available up to June 30 or until the allocation has been fully utilised, through participating financial institutions, and is guaranteed by the Credit Guarantee Corporation or the Business Financing Guarantee Company.
Meanwhile, SMEs are encouraged to incorporate sustainability practices to increase their business resilience to support the government’s target of achieving net zero carbon emissions by 2050.
To this end, they may apply for financing under the Low Carbon Transition Facility (LCTF), which is open to SMEs that are committed to transform their business operations towards low carbon operations.
The LCTF can be used to finance capital expenditure or working capital to initiate or facilitate the transition to low carbon and sustainable operations.
This includes improving energy efficiency, increasing use of sustainable material for production, and obtaining sustainability certification.
The LCTF was introduced with an allocation of RM1 billion under Budget 2022.
Starting from February 3, 2022, each SME may apply for financing of up to RM10 million, with a tenure of up to 10 years and a maximum interest rate of 5%, inclusive of guarantee fee.
“As of July 6, 26 companies have applied for the facility, and a total of RM11.71 million has been approved for 12 SMEs,” said Tengku Zafrul.
More information is available at the LCTF website and frequently asked questions. – Bernama, September 2, 2022
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