SME Bank, SME Corp Allocates RM50 Million for Fixed Working Capital Funding | Money
KUALA LUMPUR, 31 January – SME Bank has signed an agreement with SME Corporation Malaysia (SME Corp) to offer fixed working capital financing under the Working [email protected] facility for small and medium-sized enterprises (SMEs) affected by the Covid-19 pandemic through a fund allocation of RM50 million.
In a statement today, Minister of Entrepreneurs and Cooperative Development Tan Sri Noh Omar said [email protected] is a joint venture of two agencies under the umbrella of Medac that has successfully integrated comprehensive support specifically to take SMEs to the next level.
He said the government, through SME Corp, had provided a revolving fund of RM151.5 million for the BAP scheme, since its introduction in 2011, and SME Bank had acted as the agency that managed and distributed these funds.
“The government is optimistic that 2022 will be the year the SME sector continues to grow and improve its growth trajectory.
“This is supported by the 2022 budget which allocates RM14.2 billion to the SME sector as well as the National Recovery Plan (NPP), which focuses on economic recovery, ensuring sustainability and, at the same time, stimulating technological improvement and innovation,” he said.
SME Corp chief executive Rizal Nainy said many SMEs still needed an injection of funds to enable them to continue operating during and after the Covid-19 pandemic.
“This fixed working capital funding is intended to help pandemic-affected SMEs keep operating by easing the process of obtaining funding through the use of a simpler appraisal format and focusing on the type of funding required,” he said.
He said SMEs also do not need to issue additional funds, as the security condition of 5% of total funding is taken directly from the approved funding.
Meanwhile, SME Bank Group Chief Executive Officer Aria Putera Ismail said that as the agency responsible for managing the fund, SME Bank has approved financing for 542 companies with a financing value of RM247.35 million since 2011.
“SME Bank and SME Corp have agreed to give SMEs the opportunity to use this RM50 million fund for financing fixed working capital which includes operating expenses, salaries and more.
He previously said that working capital financing for BAP was limited to renovation projects, the purchase of raw materials and inventory.
“Total funding can be up to RM500,000 for each business with a profit rate of 4% per annum,” he added.
The BAP program is open to all SMEs that meet the requirements such as having a certificate of SME registration status, fulfilling the definition of SME and having passed or being ready to take the SCORE/MCORE assessment by SME Corp.
Full job information [email protected] can be found on the website www.smebank.com.my or www.smecorp.com.gov.my or by calling the SME Bank Customer Service Center at 03-26037700. — Bernama
