Govt to introduce RM2.1bil matching method to help companies face gearing problem

KUALA LUMPUR: The government will introduce a RM2.1 billion matching method through equity and quasy-equity investments to help companies facing gearing or leverage problems.

Finance Minister Tengku Datuk Seri Zafrul Abdul Aziz said the method would be spearheaded by SME Bank in collaboration with the Bumiputera Agenda Steering Unit (TERAJU) and Bank Simpanan Nasional Bhd (BSN) with funds worth RM600 million and open to all, especially Bumiputera entrepreneurs.

"Besides, Bank Pembangunan Malaysia Bhd (BPMB) will offer a RESET Scheme (Rehabilitation and Support Through Equity) and Bank Negara Malaysia (BNM) will also provide a Business Recapitalisation Fund worth RM1 billion for the same purpose.

"In total, RM14.2 billion in funds is available for small and medium enterprises (SMEs)," he said when presenting Budget 2022 at the Dewan Rakyat today.

For the continued availability of funds, Tengku Zafrul said BNM funds, especially the Targeted Relief and Recovery Facility, had been increased by RM2 billion, bringing the total availability of various BNM SME funds currently to RM11.2 billion.

Meanwhile, he said a specific initiative to help companies listed on Bursa Malaysia would also be introduced.

"This initiative aims to help companies that are viable but affected by the COVID-19 pandemic get an injection of additional funds through a government-owned special purpose vehicle (SPV) in the form of equity instruments or other related instruments.

"For this purpose, Khazanah Nasional Bhd will be given a mandate to help the government provide the infrastructure to administer a fund of at least RM3 billion. - Bernama

Article type: metered
User Type: anonymous web
User Status:
Campaign ID: 1
Cxense type: free
User access status: 3
Join our Telegram channel to get our Evening Alerts and breaking news highlights


Next In Business News

Bursa Malaysia to see cautious trading next week
Iconic Worldwide on track to become leading glove, face mask manufacturer
Malaysia-focused Technology & Telecommunication Acquisition to list on Nasdaq
CPO futures to trade lower next week on weaker exports
Citigroup results show restructuring has its costs
Oil's bull run rolls on despite possible China reserves release
Early holiday shopping hammers US retail sales
Netflix hikes prices in US, Canada for most subscription plans
GLOBAL MARKETS-Stocks stumble, yields jump on rates outlook
Sell dollar for everything else is echoing across trading rooms

Others Also Read