KUALA LUMPUR: The RM40 billion SemarakNiaga Keluarga Malaysia Programme launched by Prime Minister Datuk Seri Ismail Sabri Yaakob today will complement other efforts rolled out by the government to assist micro, small and medium enterprises (MSMEs) to recover from the Covid-19's economic aftermath.
Ismail Sabri said the programme coupled with other economic assistance initiatives such as the Bantuan Banjir Keluarga Malaysia reflected the principles espoused by the government under his leadership to ensure that no quarters would be left behind.
In his speech at the launch of the programme, the prime minister likened the aim of all the assistance introduced by the government to the Malay proverb: 'bagai berdiri sama tinggi, duduk sama rendah, bersukat sama paras, bertimbang sama berat' (having people enjoy the same social status).
"During my visit to the Farm Fresh plantation in Muadzam Shah recently, I had the opportunity to interact with small and big entrepreneurs.
"The session gave me a clear picture of their role in creating employment opportunities subsequently closing the income divide and addressing long-term challenges such as food security.
"The contribution and role of local MSME entrepreneurs nationwide are important in the country's economic recovery.
"Therefore, the government is always committed to ensuring the capabilities of the business sector especially the MSMEs are protected as they are affected by the economic impact brought about by the Covid-19 pandemic," he said.
Present were Finance Minister Tengku Datuk Seri Zafrul Tengku Abdul Aziz and his two deputies Datuk Mohd Shahar Abdullah and Yamani Hafez Musa.
The SemarakNiaga Keluarga Malaysia Programme, said Ismail Sabri, will increase access to financing facilities for the business sector especially entrepreneurs from the MSMEs and informal sector.
"The programme encompasses direct loans, financing guarantees and equity injections that will benefit all groups of entrepreneurs," he said.
The financial facilities allocated under SemarakNiaga Keluarga Malaysia through the 2022 Budget included RM14.2 billion in SME Loans.
Of the RM14.2 billion allocation, the government has set aside RM200 million for the Informal and Micro Financing Scheme or SPIM which offers up to RM10,000 in zero-interest loans with priorities given to businesses from the informal sector.
"For entrepreneurs in the agro-food industry, AgroBank is offering micro-credit financing scheme of up to RM75,000 at zero interest rate for the first six months as well as moratorium facilities of up to six months," he said.
The government alongside financial institutions, he said, have also devised a new and more flexible form of financing facilities to enable MSME entrepreneurs to expand their capabilities subsequently helping them to revive their businesses.
Among them is through equity crowdfunding and peer-to-peer financing which will be supported by RM80 million in the form of a matching grant for the Malaysia Co-Investment Fund, in addition to the investment by Bank Pembangunan Malaysia Bhd (BPMB) of RM100 million.
"To assist companies with high gearing ratio, more than RM2.2 billion in financing method through equity and quasi-equity investment are available for them under this programme.
"This measure is being spearheaded by the SME Bank with has allocated RM600 million in the fund. BMPB also offers a reset scheme or Rehabilitation and Support Through Equity.
"Bank Negara Malaysia also offers Business Recapitalisation Facility worth RM1 billion for the same purpose," he said.
The government, he said, under the SemarakNiaga Keluarga Malaysia Programme also set aside RM22 billion in guarantees through Syarikat Jaminan Pembiayaan Perniagaan (SJPP).
"After almost two years dealing with the challenges brought about by the pandemic, this year will not only be the year of recovery but also will be the year to restructure or reform.
"I hope the SemarakNiaga Keluarga Malaysia Programme can become the catalyst for the MSME community to recover and restructure their businesses," he said.