KUALA LUMPUR, Feb 9 — Prime Minister Datuk Seri Ismail Sabri Yaakob announced that financial assistance for micro, small and medium enterprises (MSME) as well as farmers have been increased to further help mitigate their losses from floods.

In a statement today, Ismail announced the government will provide a grant of RM3,000 each through Tekun Nasional to all micro and informal business affected by the floods, with an allocation of RM50 million that will benefit more than 15,000 such outfits.

Another RM50 million will also be provided through the Informal and Micro Financing Scheme (SPIM) under Tekun Nasional, to provide the same businesses interest-free micro loans of up to RM10,000 with five-year repayment tenures that will only begin 12 months after disbursement.

Next, an allocation of RM100 million will be provided through the SME Emergency Fund (SMEEF) Programme under SME Corp to provide eligible business the same loans, but for up to RM100,000.

“Previously, in December 2021, the government had announced a loan fund of RM500 million for Disaster Relief Facilities involving loans to Small and Medium Enterprises (SMEs) of up to RM700,000 at an interest rate of up to 3.5 per cent per annum with a six-month (repayment) moratorium.

“In addition, a fund of RM30 million is provided through Tekun Nasional for loans of up to RM10,000 to micro and informal entrepreneurs,” he said in the statement, referring to previous aid measures announced in December last year.

For farmers affected by the floods, the government has approved additional assistance to agro-food operators through the injection of funds of RM20 million for the Paddy Crop Disaster Fund (TBTP) through the Ministry of Agriculture and Food Industry (MAFI).

“Under the TBTP, farmers whose paddy crops have been destroyed due to floods will receive cash assistance of up to RM1,800 per hectare with a maximum limit of up to three hectares. For other agricultural entrepreneurs, an additional RM50 million will be provided under the Agro-Food Project Redevelopment Program (PPSPA).

“Under the PPSPA, farmers, ranchers and ranchers affected by flood damage, are eligible to apply for assistance up to a maximum of 50 per cent of the total loss. The rate and limit of assistance is in accordance with the Guidelines of the fund and is given in the form of goods or in-kind such as agricultural inputs or equipment,” he said.

On December 29 last year, the government allocated RM1.4 billion under the Malaysian Family Flood Aid to assist flood victims.