Extra RM5bil in aid for MSMEs


Chat on the side: Anwar talking to Bank Negara governor Datuk Seri Abdul Rasheed Ghaffour (second from left) and Treasury secretary-general Datuk Johan Mahmood Merican during the roundtable with financial institutions in Kuala Lumpur. — Bernama

KUALA LUMPUR: A further RM5bil facility under the Syarikat Jaminan Pembiayaan Perniagaan (SJPP) scheme is now available to assist micro, small and medium enterprises (MSMEs) facing the impact of the Middle East conflict.

This additional facility brings the total amount provided under the scheme to RM10bil.

Announcing this, Prime Minister Datuk Seri Anwar Ibrahim said details of the special facilities under Bank Negara would be announced soon.

“The assistance must reach the targeted groups, including MSMEs, smallholders, fishermen and hawkers, to provide them with the needed catalyst.

“We want them not to feel sidelined or forgotten in the present circumstance. I want this facility to benefit them,” he told the press after a roundtable with financial institutions yesterday.

On Monday, the Prime Minister announced a list of immediate measures, including the RM5bil financing guarantee under SJPP to ease cost pressures on MSMEs, particularly in construction, agriculture and agri-food, logistics and transportation.

The SJPP now provides financing coverage of up to 80%, from 70% previously, and a guarantee period of up to 10 years compared to seven years before this.

Anwar said relevant government institutions have been informed that the process should be smooth and not be too encumbered by bureaucracy.

“This is because in the midst of the present crisis, efficiency and speed matters much,” he said.

Anwar said any assistance to the affected parts of the economy should be targeted to only help those truly in need.

“Those affected by the crisis will get assistance as we don’t want them to unnecessarily incur additional expenses,” he said.

The Prime Minister noted that while some sectors have been impeded by the Middle East conflict, some sectors of the economy were still holding up well.

“These include the semiconductors, electrical & electronics, data centres and artificial intelligence (AI) industries.

“There have also been continued investments into the country in the last two to three weeks and these are new investments. I have informed the banks’ management,” he said.

Meanwhile, Anwar said the fundamentals and strength in the country’s financial institutions also provide a basis for a resilient economic outlook.

“Macroeconomic indicators are looking good at the moment. For example, for the first quarter growth, the central bank’s forecast is also good at 4-5%.

“The expected economic growth despite the crisis is still around 4-5%.

“This is a unique achievement considering the global landscape,” he added.

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