The Selangor government has introduced the Selangor Advance financing scheme with a start-up fund of RM100 million to assist small and medium enterprises (SMEs), particularly contractors and service providers, in facing the post-Covid-19 economic challenges.

Mentri Besar Datuk Seri Amirudin Shari (picture) said the initiative aims to help business owners to have sufficient funds to ensure their business continuity.

Through the initiative, he said the payment for the work done would be expedited to the contractors and service providers.

“Selangor Advance will first be introduced to those providing services to the state government or government-linked companies before it is extended to businesses that are dealing with local authorities.

“A total of RM100 million has been allocated for the financing initiative under the state’s economic stimulus package, the Selangor Cares Package 2.0, which was announced on April 1,” he said in a statement yesterday.

Amirudin said the initiative was formulated based on a Shariah-compliant financing concept to help the SMEs increase their cashflow.

“We hope that the initiative would enable businesses to continue to thrive in the current economic landscape,” he said, adding that the registration for Selangor Advance will be from July 1 onwards.