SME Bank Allocates RM2.1 Billion to Assist SMEs under PENJANA
SME Bank is allocating a fund of up to RM2.1 billion for the SME Go scheme and SME Technology Transformation Fund (STTF) following the mandate given by the Prime Minister, YAB Tan Sri Muhyiddin Yassin to revitalize the SMEs economic activities during the PENJANA announcement on 5 June 2020.
YB Dato Sri Dr. Haji Wan Junaidi Tuanku Jaafar, the Minister of Entrepreneur Development and Cooperatives (MEDAC) said, “The RM2.1 billion allocation provided by SME Bank is expected to rejuvenate economic activities in construction sector targeting G2 and G3 contractors and also to increase adoption of technology under the Fourth Industry Revolution (IR 4.0) by the SMEs to face the new norm.”
Aria Putera Ismail, Group President/Chief Executive Officer of SME Bank said, “The SME Bank’s two-year acceleration program involving digital transformation in 2019 has well positioned the Bank to implement its mandated roles as well as supporting the Government to execute key initiatives to help SMEs to sustain during the COVID-19 pandemic.”
Below are the details of the SME Go Scheme and STTF that will be made available starting from 1 July 2020:
Details | SME Go Scheme | STTF |
Fund Allocation | RM1.6 billion. | RM500 million. |
Targeted Recipients | 16,000 G2 and G3 contractors. | SMEs in the services and manufacturing sectors. |
Financing Purposes | Working Capital financing for pre-implementation stage of construction or supply or maintenance contract awarded by Federal or State Governments, Ministries, Departments or Agencies. | Purchase of equipment, machinery, computer hardware and software, IT solutions and services, technology support services and other intangible assets to enhance productivity, efficiency and greater market penetration. |
Margin of Financing | Up to 100% of the contract cost. | Up to 80% of the acquisition cost (Up to maximum RM3 million). |
Collaterals | No upfront collaterals are required but the Bank is entitled to the proceeds of the contract from the contract awarder. | The asset to be financed shall be the collateral for the financing. The Bank can obtain the Guarantee Schemes from Credit Guarantee Corporation Malaysia Berhad (CGC) or Syarikat Jaminan Pembiayaan Perniagaan (SJPP). |
Advance Payment Guarantee |
The Bank will issue the Advance Payment Guarantee at 25% of the contract value or RM100,000, whichever is lower.
| Not applicable. |
Profit Rate | 7.0% p.a. | 4.0% p.a. (Inclusive of guarantee fee). |
Disbursement Mode | The financing will be disbursed directly to the supplier or sub-contractor upon verification of invoice(s) or claim(s) submitted to the Bank. | The financing will be disbursed directly to the supplier or vendor upon verification of invoice(s) submitted to the Bank. |
For more information about the SME Go Scheme, STTF and other services offered by SME Bank, call our Customer Contact Centre at 03-26037700 or visit the Bank’s official website at www.smebank.com.my.
