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BNM Introduces RM5 Bln Financing Facility To Support SMEs Affected By West Asia Conflict 

KUALA LUMPUR, April 28 (Bernama) -- Bank Negara Malaysia (BNM) has introduced the SME Stabilisation Relief Facility (SME SRF), a RM5 billion financing facility to assist small and medium enterprises (SMEs), including microenterprises, affected by the ongoing West Asia conflict.

The central bank said eligible SMEs may obtain financing of up to RM750,000 for a tenure of up to five years, at a maximum financing rate of 3.75 per cent per annum, inclusive of a guarantee fee. 

“The financing will be supported by guarantees of up to 80 per cent from Credit Guarantee Corporation Malaysia (CGC) or Syarikat Jaminan Pembiayaan Perniagaan (SJPP), particularly for SMEs without sufficient collateral,” it said in a statement today.

As announced by Prime Minister Datuk Seri Anwar Ibrahim at the roundtable discussion with chief executive officers of financial institutions on April 21, the SME SRF will provide timely working capital support to help viable businesses sustain operations and navigate this period of uncertainty. 

BNM said applications for the SME SRF will be open from May 15 until Dec 31, or until full utilisation. 

SMEs may apply directly through participating financial institutions, including commercial banks, Islamic banks and development financial institutions regulated by BNM.

“In the current environment, BNM strongly encourages businesses that anticipate or are already experiencing financial difficulties to engage early with their financial institutions. 

“Proactive action enables banks to work with borrowers to identify suitable solutions, including repayment flexibility, restructuring of financing facilities, or other tailored support measures to help businesses remain viable,” the central bank said.

In addition, SMEs may seek financial advisory, financial education support, and holistic debt repayment assistance from the Credit Counselling and Debt Management Agency (AKPK) through the Debt Management Programme for individuals and sole proprietors, and Small Debt Resolution Scheme for SMEs.

-- BERNAMA