Image credit: The Star
KUCHING (Feb 3): The Sarawak government has introduced an additional RM141.7 million worth of assistance initiatives under the ‘Sarawakku Sayang Special Assistance 5.0’ package, specifically tailored to help small and medium enterprises (SMEs) overcome the impact of the Covid-19 pandemic.
In a press conference at Wisma Sumber Alam here, Deputy Chief Minister Datuk Amar Awang Tengah Ali Hasan said the latest assistance package was divided into seven initiatives, mostly allocating funds to existing schemes as well as two new initiatives, and about 10,000 entrepreneurs are expected to benefit from the initiative.
“The Chief Minister Datuk Patinggi Abang Johari Tun Openg has instructed me to study and discuss financial assistance that could assist SMEs in the state to overcome the challenges and difficulties brought about by the pandemic,” said Awang Tengah, who is also Minister of International Trade and Industry, Industry Terminal and Entrepreneur Development.
The additional funds allocated included RM50 million for Sarawak Micro Credit Scheme (SKMS), RM20 million for Small and Medium Industry Financing Scheme (SPIKS), RM22.2 million for interest subsidy under the Targeted Relief and Recovery Facility (TRRF), RM2.5 million for an interest subsidy under Penjana Tourism Financing (PTF), RM20 million for the Graduates Entrepreneurship Programme (Gerak) and Vocational and Technical Entrepreneurs (USTEV).
The two new assistance initiatives set up are Go Digital Sarawak Programme which will be allocated RM20 million and another RM2 million for Digital Marketing Training Programme.
For the Sarawak Micro Credit Scheme (SKMS), Awang Tengah said the state government had agreed to allocate an additional RM50 million due to overwhelming demand for the facility.
“The state government has also agreed to extend the loan repayment moratorium for six months for existing borrowers of the scheme.”
For new applicants who are approved by June 30 this year, he said they are also entitled to enjoy six months’ moratorium and interest subsidy assistance for three and a half years, with over 1,700 new SMES to be benefitted.
Awang Tengah said the scheme was first introduced last year with an allocation of RM50 million, offering soft loans up to maximum RM50,000 at 4 per cent interest per annum to SMEs, including micro and bottom 40 per cent income (B40) entrepreneurs.
“For B40 entrepreneurs, they will enjoy zero-interest for loans up to RM10,000 which we have implemented since last year. For other loans up to RM50,000, entrepreneurs will enjoy three and half years interest subsidy.”
Applications for the scheme only require business permits as issued by the councils or the relevant authorities, he said.
“As of date, SKMS has managed to assist 1,370 SMEs, including micro and B40 entrepreneurs with a total loans approved of RM44.8 million. All of them now are enjoying three and a half years interest subsidy and six months’ moratorium.”
For January this year, it was said that 180 new applications for the scheme were still being processed.
Another initiative, Small and Medium Industry Financing Scheme (SPIKS), has been allocated an additional of RM20 million to assist bumiputera entrepreneurs in expanding their business, from the aspects of working capital as well as purchasing machines and equipment.
As announced in the previous BKSS package, Awang Tengah said the state government had offered loan repayment moratorium and interest subsidy for three and a half years for borrowers of SPIKS who were approved before Dec 31 last year.
A moratorium of six months until June this year was also being offered to existing SPIKS’ borrowers under the recently announced BKSS 5.0, Awang Tengah says.
“For new applications of SPIKS that are approved by June 30 this year, the state government has agreed to provide a moratorium of six months and interest subsidy for three and a half years or 42 months. The additional allocation will benefit over 200 new SMEs.”
The additional RM20 million was an increase from the RM2 million allocated last year to the SPIKS initiative.
Moreover, Awang Tengah said the state government will be providing RM22.2 million for interest subsidies for a duration of three and a half years (42 months) to qualified SMEs under the Target Relief and Recovery Facility (TRRF).
The deputy chief minister remarked the TRRF initiative was first introduced by the federal government via Bank Negara to provide relief and support recovery for SMEs, including those involving in personal services, food and beverage service, human health and social work, arts and entertainment and recreation.
“The federal government has allocated RM2 billion under the TRRF scheme for SMEs throughout Malaysia for working capital only. The TRRF initiative provides loans up to RM500,000 with 3.5 per cent interest for seven years, inclusive of six months’ moratorium.”
To date, Awang Tengah said 279 applications from the state SMEs had been approved for the scheme with a value of RM75.8 million and the fund for the TRRF scheme was still available to be applied until Dec 31 this year.
He said his ministry will be collaborating with 12 local banks to implement the interest subsidy initiative under TRRF, namely CIMB Bank, Hong Leong Bank, Maybank, Muamalat Bank, Public Bank, RHB Bank, SME Bank, Agrobank, Alliance Bank, Ambank, Bank Raykat and Bank Islam.
Source: https://www.theborneopost.com/2021/02/03/rm141-7-mln-in-assistance-initiatives-to-be-distributed-under-sarawakku-sayang-special-assistance-5-0/