PM: Funds approved for interest-free loans to help MSMEs recover from floods | Malaysia

In a statement today, Prime Minister Datuk Seri Ismail Sabri Yaakob announced that the government would provide a grant of RM3,000 each through Tekun Nasional to all micro and informal businesses affected by the floods, with an allocation of RM50 million which will benefit over 15,000 such outfits. — photo by Bernama

KUALA LUMPUR, February 9 – Prime Minister Datuk Seri Ismail Sabri Yaakob has announced that financial assistance to Micro, Small and Medium Enterprises (MSMEs) as well as farmers has been increased to help further mitigate their flood losses.

In a statement today, Ismail announced that the government would provide a grant of RM3,000 each through Tekun Nasional to all micro and informal businesses affected by the floods, with an allocation of RM50 million. which will benefit more than 15,000 of these companies.

An additional RM50 million will also be provided through the Informal Finance and Microfinance (SPIM) program under Tekun Nasional, to provide the same businesses with interest-free micro-loans of up to RM10,000 with longer repayment terms. of five years which will start only 12 months after disbursement.

Then, an allocation of RM100 million will be provided through the SME Emergency Fund Scheme (SMEEF) under SME Corp to provide eligible businesses with the same loans, but up to RM100,000.

“Earlier, in December 2021, the government announced a loan fund of RM500 million for disaster relief facilities involving loans to small and medium-sized enterprises (SMEs) of up to RM700,000 at a rate of interest of up to 3.5% per annum with a moratorium (reimbursement) of six months.

“In addition, a fund of RM30 million is provided by Tekun Nasional for loans of up to RM10,000 to micro-entrepreneurs and informal entrepreneurs,” he said in the statement, referring to the measures to aid announced in December last year.

For farmers affected by the floods, the government has approved additional aid to agribusiness operators through the injection of funds of RM20 million for the Paddy Crop Disaster Fund (TBTP) through the Ministry of Agriculture. Agriculture and Food Industry (MAFI).

“Under the TBTP, farmers whose paddy crops have been destroyed due to flooding will receive cash assistance of up to RM1,800 per hectare with a maximum limit of three hectares. For other agricultural contractors, an additional RM50 million will be provided under the Agribusiness Project Redevelopment Program (PPSPA).

“Under the PPSPA, farmers, ranchers and ranchers affected by flood damage can apply for assistance up to a maximum of 50% of the total loss. The rate and limit of the aid is in accordance with the guidelines of the fund and is granted in the form of goods or in kind such as agricultural inputs or equipment,” he said.

On December 29 last year, the government allocated RM1.4 billion under the Malaysian Family Flood Relief to help flood victims.

James V. Hayes