RM200 Million Financing Facilities Are Available for MSMEs Affected by the Recent Floods

Bank Negara Malaysia (BNM) has announced the availability of RM200 million financing facilities for micro and small and medium enterprises (MSMEs) affected by the recent floods nationwide under the Disaster Relief Facility 2022 (DRF 2022).

The DRF 2022 will assist SMEs in covering the costs of repairs and/or replacement of assets for business use (e.g. plants and machinery) which have been damaged by floods; and/or for working capital. The DRF 2022 is available to SMEs, including microenterprises, with a maximum amount of financing of up to RM500,000 per SME and up to RM75,000 per micro enterprise. The tenure of the financing is up to 5 years, including a moratorium period of 6 months on both principal and interest/profit payments. The financing rate is up to 3.50% per annum, inclusive of any guarantee fee. The facility will be available from 27 December 2021 until full utilisation (or until further notice, depending on the flood situation).

Affected businesses can apply from participating financial institutions which comprise commercial banks, Islamic banks and development financial institutions regulated by BNM.

Businesses may contact Bank Negara Malaysia if they face any difficulties with respect to the above facility.

The banking and insurance industry is committed to assisting those affected. The financial industry has announced various flood assistance initiatives. For further details, members of the public can contact their financial institutions by referring to their respective websites.

21 December 2021

Author: Terry KS

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