SME Bank Offers Up To RM2.1 Billion Financing Aid For SMEs
Author Avatar
sme bank

(Image: New Straits Times)

SME Bank has allocated up to RM2.1 billion in financial aid for its SME customers affected by the Covid-19 pandemic, to be offered through the SME Go scheme and the SME Technology Transformation Fund (STTF). Both initiatives were introduced under the PENJANA economic recovery plan.

Of the total, RM1.6 billion will be earmarked for the SME Go scheme, which is intended to help finance the pre-implementation stage of construction or supply/maintenance contracts awarded by the federal or state government and agencies. The financial aid is targeted at G2 and G3 contractors, referring to SMEs that are allowed to tender for government projects valued at less than RM500,000 and RM1,000,000, respectively.

“Under the scheme, the financing limit offered is up to 100% of the contract cost,” said the group president and chief executive officer of SME Bank, Aria Putera Ismail.

sme go

Meanwhile, RM500 million will be allocated for the STTF to help entrepreneurs in the services and manufacturing sector begin their digitalisation journey. They can tap into the STTF to purchase equipment, machinery, computer hardware, and other varieties of assets to enhance their productivity and efficiency, as well as help them penetrate new markets.

“The asset to be financed under STTF shall be the collateral for the financing. The bank can obtain the guarantee schemes from Credit Guarantee Corporation Malaysia Bhd or Syarikat Jaminan Pembiayaan Perniagaan,” said Aria Putera. He also clarified that applicants can apply up to 80% of the acquisition cost (maximum RM3 million), and that the fund will be disbursed directly to the supplier or vendor when SME Bank receives verification of purchase invoices.

sme sttf

Aria Putera further added that the digital transformation programme that SME Bank undertook back in 2019 has put the bank in a good place to assist the government in executing key initiatives during this crucial period. The transformation programme, which took place over two years, saw SME Bank setting new directions and projects to improve its services for the digital economy.

Separately, Entrepreneur Development and Cooperatives Minister Datuk Seri Dr Wan Junaidi Tuanku Jaafar commented that SME Bank’s allocation of funds is expected to rejuvenate economic activities in the construction sector. Additionally, it will also encourage SMEs to adopt technology as the country embarks on the Fourth Industry Revolution (IR 4.0) to face the new normal.

You can find out more about the SME Go scheme and the STTF financing aid here.

(Source: The Star, New Straits Times)

0 0 votes
Article Rating

SHARE

Comments (0)

Subscribe
Notify of
0 Comments
Inline Feedbacks
View all comments
Top Bank News Articles
Post Image
Malaysian Banks And Local Institutions Offer Financial Assistance For Customers Affected By Covid-19
Alex Cheong Pui Yin
- 1st April 2020
(Last update: 1 April 2020, 3.40pm to include FAQs by banks.) With Malaysia going into an extended period […]
Post Image
Loan Repayment Assistance Under PEMERKASA+ Is Available For Everyone
The RinggitPlus Team
- 15th June 2021
The latest spike in Covid-19 cases has led to the declaration of a third movement control order and […]
Post Image
Public Bank Extended Moratorium: Flexible Arrangements To Reduce Loan Instalments Until End-2021
Jacie Tan
- 7th August 2020
Public Bank has released the details of its Covid-19 assistance for those who will still be in financial […]
Post Image
CIMB: Touch ‘n Go eWallet Sees Healthy Volumes For Essential Services And Online Transactions
Alex Cheong Pui Yin
- 13th April 2020
CIMB Group Holdings Bhd, which owns Touch’n Go Sdn Bhd (TNGSB), has reported a continuation of healthy volumes […]

Related articles

Related Posts Image
Related Posts Image
Related Posts Image
Related Posts Image