BNM announces RM200 mln flood relief financing aid for MSMEs

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

To be available from Dec 27 until full utilisation, the DRF 2022 will assist SMEs in covering the costs of repairs and/or replacement of assets for business use such as plants and machinery, which have been damaged by floods; and/or for working capital, BNM said.

"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 five years, including a moratorium period of six months on both principal and interest/profit payments and the financing rate is up to 3.50 per cent per annum, inclusive of any guarantee fee," it said in a statement today.

The central bank said 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 at bnm.gov.my/LINK if they face any difficulties with respect to the above facility.

For further details, members of the public can contact their financial institutions by referring to their respective websites.

-- BERNAMA