RM5 mil funding for SMEs via BNM facility

KUALA LUMPUR – Small and medium enterprises (SMEs) can obtain financing of up to RM5 million from Bank Negara Malaysia’s (BNM) RM1 billion High Tech Facility–National Investment Aspirations (HTF-NIA).

“SMEs can obtain financing of up to RM1 million for working capital purposes; up to RM5 million to finance capital expenditure; or a combination of working capital and capital expenditure of up to RM5 million, for a tenure of up to 7 years,” said BNM in a statement yesterday.

It said the facility is offered at a financing rate of up to 3.5% per annum for financing without guarantee or up to 5% per annum inclusive of guarantee fee (with guarantee coverage by Credit Guarantee Corporation Malaysia Bhd).

The facility is available from yesterday to December 31, 2021, or until it is fully utilised, whichever is earlier.

The HTF-NIA, introduced in Budget 2021, is part of the government’s effort to provide additional assistance to SMEs affected by the Covid-19 pandemic.

“The facility is aimed at supporting high-tech and innovation-driven SMEs affected by Covid-19 to recover and revitalise the nation’s innovation capacity. This is critical to strengthen Malaysia’s competitive positioning in global value chains, preserve the supply chain ecosystem and safeguard high-skilled jobs.”

The central bank said eligible SMEs include those in advanced manufacturing and services sectors that are best aligned to deliver the overarching national strategic long-term development goals, as embedded in the National Investment Aspirations.

These include businesses in the electrical and electronics, aerospace, pharmaceuticals, and information and communications technology sectors, as well as research and development driven firms supporting the development of emerging technologies.

“SME project participants in key government programmes involved in research, development and innovation for critical technologies identified under national blueprints, from IR4.0-related technologies, green technology to biotechnology, to ensure their continuity and completion of those existing projects are also eligible,” said the central bank.

Interested SMEs can apply directly to participating financial institutions, which comprise commercial banks, Islamic banks and development financial institutions regulated by the central bank through their websites or by visiting their branches. – Bernama, December 16, 2020