Malaysia’s Development Financial Institutions Offer more than RM900M in Financing Aid to Virus-Hit SMEs

Malaysia’s Development Financial Institutions Offer more than RM900M in Financing Aid to Virus-Hit SMEs

KUALA LUMPUR (April 13): Several members of The Association of Development Finance Institutions Malaysia (ADFIM) has allocated more than RM900 million as financing aid for communities and small- and medium-sized businesses that had been affected by or been forced to halt operations since March due to the Covid-19 outbreak.


On top of that, ADFIM said in a statement today that RM14.1 million has been donated by its members to various organisations to help both front liners and affected communities deal with the impact of the outbreak.


According to ADFIM secretary-general Mohd Prasad Hanif, ADFIM has 17 members, among which are Bank Simpanan Nasional (BSN) — the operator of Micro Credit Scheme that has donated RM700 million to qualified businesses and entrepreneurs, and Bank Rakyat.


Through a special Covid-19 relief scheme, BSN offers easy financing to micro-entrepreneurs in all business sectors that need help.


BSN has also eased its loan eligibility requirement with a minimum operation period of six months instead of one year. The amount of financing has also been raised from a maximum of RM50,000 to RM75,000 for each entrepreneur.


“Besides that, the bank offers mortgage-free financing of up to RM250,000 that involves a special relief facility for [those in the] agrofood, automation and digital [industries] with tenures of between five and seven years,” he said.


Meanwhile, Bank Rakyat has allocated RM200 million to meet the financing needs of cooperatives and SMEs from March 23, subject to conditions to be met.


“The bank also offers a six-month moratorium on financing repayment for individuals and companies in industries that have been affected, like aviation, tourism, and transportation,” he said.


Hence, ADFIM urged those interested in the financing aid available to directly communicate with the respective institutions. All customer service hotlines remain in operation, he added.


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