KUALA LUMPUR, Jan 31 — SME Bank has signed an agreement with SME Corporation Malaysia (SME Corp) to offer fixed working capital financing under the Working Capital@BAP facility for small and medium entrepreneurs (SME) affected by the Covid-19 pandemic through a fund allocation of RM50 million.

In a statement today, Minister of Entrepreneur Development and Cooperative Tan Sri Noh Omar said Working Capital@BAP is a joint venture of two agencies under the purview of Medac that has successfully integrated comprehensive assistance specifically to take SME businesses to the next level.

He said the government, through SME Corp, had provided a revolving fund of RM151.5 million for the BAP Programme, since its introduction in 2011, and SME Bank had acted as the agency that managed and distributed these funds.

“The government is optimistic that 2022 will be the year for the SME sector to continue to rise and improve its growth trajectory

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“This is supported by the Budget 2022 which allocates RM14.2 billion for the SME sector as well as the National Recovery Plan (PPN), which focuses on driving economic recovery, ensuring sustainability and at the same time, driving technological improvement and innovation,” he said.

SME Corp chief executive officer Rizal Nainy said there are still many SMEs that needed an injection of funds to enable them to continue to operate during and post-Covid-19 pandemic.

“This fixed working capital financing is intended to help pandemic-affected SMEs continue to operate by facilitating the process of obtaining financing through the use of a simpler valuation format and focus on the type of financing required,” he said.

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He said SMEs also doesn’t need to issue additional funds as the security condition of five per cent of the total financing is taken directly from the approved financing

Meanwhile, SME Bank group president/chief executive officer Aria Putera Ismail said as the agency responsible for managing the fund, SME Bank has approved financing to 542 companies with a financing value of RM247.35 million since 2011.

“SME Bank and SME Corp have agreed to provide flexibility to SMEs to use this RM50 million fund for fixed working capital financing which includes operating expenses, salaries and others.

He said previously, working capital funding for BAP was limited to renovation projects, purchase of raw materials and inventory.

“The total financing is up to RM500,000 for each company with a profit rate of four per cent per annum,” he added.

The BAP programme is open to all SMEs who meet the requirements such as having an SME registration status certificate, fulfilling the SME definition and having passed or are ready to go through the SCORE/MCORE assessment by SME Corp.

Full information on the Working Capital@BAP facility can be found on the www.smebank.com.my website or www.smecorp.com.gov.my or by calling the SME Bank Customer Service Center at 03-26037700. — Bernama