Additional RM200 mln allocation for MSMEs impacted by COVID-19, flood - Noh

Entrepreneur Development and Cooperatives (MEDAC) Minister Tan Sri Noh Omar said Prime Minister Datuk Seri Ismail Sabri Yaakob has approved the allocation involving RM50 million for micro-entrepreneurs, RM100 million for SMEs and RM50 million for informal businesses.

The allocation is expected to be dispensed beginning March. As of last week, his team had received a total of 13,600 applications.

"For example, micro-entrepreneurs affected by floods will be given a one-off allocation of RM3,000. SME entrepreneurs will be given a maximum loan of RM100,000, without any collateral, and interest-free as well as given a moratorium for one year.

Meanwhile, informal entrepreneurs will receive a maximum of RM10,000 and it will be interest-free," he said at a press conference after the UDA Holdings Berhad's Back to School 2022 programme at Angsana Johor Bahru Mall here.

He said this when asked to elaborate on the assistance towards entrepreneurs affected by the COVID-19 pandemic and the recent floods.

Noh said the government had previously allocated funds amounting to RM200 million under the Informal and Micro Financing Scheme (SPIM) as a revolving capital injection to rehabilitate and restart businesses affected by the floods and COVID-19.

"I am hearing many complaints of being slow to get (help), but in fact, the government's allocation of RM200 million for that has been exhausted.

"Therefore, I appealed and have received an additional allocation. I would like to thank the Prime Minister who is so concerned about the affected entrepreneurs," he said.

Also present at the event were MEDAC deputy secretary-general (Entrepreneur Development) Datuk Zamri Salleh and UDA chairman Datuk Norliza Abdul Rahim.

Meanwhile, Noh said a total of 847 tenants of business premises in shopping complexes under the supervision of UDA throughout Malaysia, were also given an additional moratorium for six months.

Earlier, a total of 200 students from nine schools in the city received donations worth RM200 in the form of school bags, stationery and vouchers to purchase school uniforms.

Noh said the UDA initiative was a commitment by the ministry and its agencies in helping the needy. He hoped that the noble effort would be an example, thus encouraging more government-linked companies and corporations to also extend assistance to the affected communities.

Meanwhile, Norliza said the Back To School 2022 programme was also a proactive step by UDA in reaching out to the communities around UDA's business districts and easing the burden of parents in preparing their children to return to school next month.

"This effort is also expected to motivate all students as they start a new school session," she added.