Malaysia's Central Bank provides financing facility for SMEs

Tuesday 1 June 2021 11:06 CET | News

Malaysia’s Central Bank has established a 1 billion ringgit (USD 241 million) financing facility — the High Tech Facility – National Investment Aspirations (HTF-NIA) — to support local high-tech and innovation-driven small and medium-sized enterprises impacted by the pandemic.
Eligible companies can receive up to 1 million ringgit (USD 241,000) as working capital and up to 5 million ringgit (USD 1.2 million) for capital expenditure (CAPEX). HTF-NIA is available until December 31, 2021, or until the funding has been fully utilised (whichever comes first).

SMEs that are not eligible for the HTF-NIA can apply for other financing facilities from BNM, such as the SME Automation and Digitalization Facility (ADF). Under this scheme, businesses can receive up to 3 million ringgit (USD 725,000) for the purchase of equipment and software that accelerates the automation and digitalisation of business operations.

Eligible SMEs engaged in advanced manufacturing and services sectors that are aligned with the long-term goals embedded in the National Investment Aspirations (NIA) plan, or SMEs participating in key government projects like the development of critical technologies, will qualify for HTF-NIA.

The facility is offered at a financing rate of up to 3.5% per annum for financing without guarantee or up to 5% per annum inclusive of guarantee.

SMEs are advised to contact the 20 participating financial institutions (PFI) to ascertain whether they are eligible for HTF-NIA financing.

If there are any guarantee coverage, then it can be provided by Credit Guarantee Corporation Malaysia (CGC). However, where applicable, this guarantee fee would already be included in the financing rate charged to the customers, which could be up to 5% per annum.


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Keywords: SMEs, SME lending
Categories: Banking & Fintech | E-invoicing, SCF & E-procurement
Countries: Malaysia
This article is part of category

Banking & Fintech