PETALING JAYA: With logistics costs surging by up to 50%, the government is rolling out a series of funds and initiatives through the Investment, Trade and Industry Ministry, said Deputy Minister Sim Tze Tzin.
He said the measures were aimed at easing pressure on SMEs and industries struggling under global uncertainties.
“These initiatives are designed to ease cash flow constraints, accelerate the transition to alternative supply and energy, and safeguard our exporters against international volatility,” Sim said at a press conference at the ministry on May 21.
Among the programs is the Sustainable and Green Biz Financing (SGBF), which offers up to RM10,000,000 at 2% interest for SMEs and 5% for non‑SMEs to support green manufacturing and Battery Energy Storage Systems (BESS).
"Qualified SMEs can receive financing approval within two days to switch to alternative energy sources," Sim said.
"The ministry is also working with the Export‑Import Bank of Malaysia (Exim Bank) to protect the national export ecosystem amidst the West Asia conflict.
"This includes the Malaysia Global Connect (MGC) Go Export Cover, which provides a 30% incentive on takaful contribution costs (capped at RM25,000) to shield exporters against commercial and political risks."
He added that there was also the Skim Eksport Lonjakan (ExL), a RM500,000,000 fund offering a 1% annual profit rate subsidy for up to seven years to boost the international capabilities of local companies.
He also announced a comprehensive trade credit takaful and insurance policies to safeguard SMEs against non‑payment, insolvency and political disruptions.
Sim also announced three emergency relief and financial restructuring programs for businesses hit by supply chain disruptions.
These include repayment assistance for existing MIDF clients affected by the Middle East crisis, allowing access to moratoriums of up to 12 months.
"For SMEs impacted by the US‑Iran conflict, a group‑wide relief scheme will provide up to six months’ moratorium on term financing, revolving and trade facilities," he said.
He further highlighted the RM5bil SME Stabilisation Relief Facility (SME SRF) by Bank Negara Malaysia, already in place since May 15, to provide working capital at rates up to 3.75% per annum with no collateral requirements.
“The next few months are going to be more difficult,” Sim said. “But there’s no reason to panic. We have gone through crises before, including during the pandemic. Hence, why the government is giving these initiatives.”
