KUCHING (Sept 7): The state government will consider increasing the allocation for interest subsidy of Special Relief Fund (SRF), Targeted Relief and Recovery Facility (TRRF) and Penjana Tourism Financing (PTF) if the needs arise, said Deputy Chief Minister Datuk Amar Awang Tengah Ali Hasan.
He said the SRF, TRRF as well as PTF are loans provided by the Federal Government, and Sarawak is the only state in Malaysia that provides the interest subsidy schemes for SMEs under these three schemes.
To date, he said, the interest subsidy for SRF, TRRF and PTF was estimated to be RM88.2 million.
“The Sarawak government will consider increasing the allocation for interest subsidy if the needs arise,” he told a press conference on the implementation of Sarawakku Sayang Special Assistance (BKSS) 7.0 package for businesses today.
The Minister of International Trade and Industry, Industrial Terminal and Entrepreneur Development (Mintred) said that eligible Small and Medium Enterprises (SMEs) under TRRF and PTF schemes are entitled for 3.5 years interest subsidy to be provided by the Sarawak government.
“These subsidy schemes are available until December 31 this year.
“Application for both schemes can be made through 12 participating local banks, namely Public Bank, Maybank, CIMB, SME Bank, Ambank, Bank Muamalat, RHB, Hong Leong Bank, Alliance Bank, Agrobank, Bank Rakyat
and Islamic Bank,” he said.
Awang Tengah noted that since the outbreak of the Covid-19 pandemic last year, the federal government has implemented several programmes and initiatives that benefit Sarawakians especially the business community.
At the same time, he said, the state government also has implemented several assistance under the BKSS packages including the microcredit scheme for B40 entrepreneurs, micro and small operators, which is implemented through his ministry.
He explained the scheme, which is open to all Sarawakians, offers loans up to a maximum of RM50,000 with an interest rate of four per cent based on a reduced monthly balance.
“To date, all 1,463 borrowers approved under this scheme are enjoying interest rate subsidy for a period of 3.5 years.
“At the same time, new applications that will be approved until December 31 this year are eligible to enjoy interest subsidy assistance for 3.5 years,” he said.
The microcredit scheme does not require a guarantor and only requires at least a business permit issued by the local authority or relevant agency.
Applications can be submitted to Sarawak Economic Development Corporation (SEDC) and Agrobank.
On the loan scheme for Bumiputera enterpreneurs known as Small and Medium Industries Loan Scheme (SPIKS), Awang Tengah said there is an additional RM20 million allocation, which will be channeled by the stages.
He explained that SPIKS is an initiative of the state government to assist Bumiputera SMEs including micro-entrepreneurs to grow their businesses in terms of working capital and purchase of machinery and equipment.
He said that the scheme offers loans of up to RM250,000 with an interest rate of four per cent based on diminishing balance and is implemented by SEDC.
“To date, all 411 borrowers approved under SPIKS are enjoying interest rate subsidy for a period of 3.5 years.
“Also for new applications approved until Dec 31 this year, borrowers are eligible to enjoy interest subsidy assistance for 3.5 years,” he said.
Apart from the above financial assistance, Awang Tengah said the state government also provides a maximum discount of 25 per cent for water and electricity bills, a discount of up to 30 per cent for the Door Tax (Assessment Rate) and a 30 per cent discount for land tax to ease the burden of the people, including entrepreneurs, and all these assistances are still in implementation until December this year.
“The Ministry will constantly review the effectiveness of BKSS initiatives. We always listen and very much welcome suggestions especially from the people, including business chambers and associations.
“The state government under the leadership of Chief Minister of Sarawak is very concerned and takes into account the opinions expressed in providing the assistance needed by the people and also to provide strategic planning for Sarawak’s Post Covid-19 Development Strategy 2030 (PCDS),” he said.
However, the minister pointed out that these financial schemes are to provide temporary relief to the entrepreneurs and business community.
“The long-term solution is to slowly open up the economy so that the business community can start their business operations and have incomes.
“Therefore, the people’s adherence to the Standard Operating Procedures (SOP) as set by the authorities is important to ensure that we move on to the next phases that allow us to carry out economic and social activities as usual,” he said.
Also present were Mintred assistant minister Datuk Mohd Naroden Majais and permanent secretary Datu Liaw Soon Eng.
Source: https://www.theborneopost.com/2021/09/07/sarawak-govt-to-consider-increasing-allocation-to-subsidise-srf-trrf-ptf-interest-rates-dcm/