SMEs welcome additional monies for relief fund

KUALA LUMPUR: Small and medium enterprises (SMEs) welcome the additional RM2bil allocation by Bank Negara for the Targeted Relief and Recovery Facility (TRRF) as they continue to face cash flow issues in the latest round of movement restrictions.

According to SME Association of Malaysia president Datuk Michael Kang (pic), many SMEs and micro-SMEs were not able to operate under the current movement control order and had difficulty generating sales.

“Whatever additional funds that the government can allocate is good for the SMEs because a lot of them are facing another round of cash flow issues in this second movement control order.

“And for a lot of them, the cash has already dried up.

“But we hope that the applications can be quickly processed and the funds speedily disbursed.”

Kang also hoped that Bank Negara would be able to come up with clear guidelines for financial institutions to follow in approving applications for the facility to make it easier for small businesses.

He noted that businesses in certain sectors found it more difficult to get funding as banks might view them as riskier segments.

Thus, a clear guideline from the central bank would help companies that qualify to have better access to finances.

In a statement yesterday, Bank Negara announced an additional allocation of RM2bil for the TRRF and the setting up of a RM200mil Disaster Relief Facility 2021.

This increases the total allocation for the TRRF to RM4bil.

Associated Chinese Chambers of Commerce and Industry of Malaysia SMEs committee chairman Koong Lin Loong pointed out that there was little awareness on the TRRF as SMEs were previously focused on the Special Relief Facility.

“The TRRF was introduced under Budget 2021 in view of its benefits to SMEs and micro-SMEs. It will benefit a lot of petty traders, hawkers and the micro guys.

“Since a lot of businesses were impacted by MCO 2.0, this loan will definitely benefit them, ” said Koong.

However, he hoped that the government could reduce the interest rate for the facility from the current 3.5% to 2%-2.5% given the current low interest rate environment.