PUTRAJAYA has rolled out several micro credit facilities as well as alternative financing to help businesses recover from the impact of Covid-19, Finance Minister Tengku Zafrul Tengku Abdul Aziz said today.

The allocation for the economic sector makes up 11% of the RM332.1 billion Budget announced today.

Under Budget 2022, the government has allocated RM40 billion under the Semarak Niaga programme to fund direct loans, guarantee and equity injections to benefit all businesses big and small.

“This will benefit micro, small and medium-sized businesses as well as listed companies,” he said during the tabling of Budget 2022 in Parliament this evening.

The government will also be providing a RM1.8 billion micro credit scheme through Tekun, Agrobank, BSN, Bank Rakyat and the central bank (BNM).

“This is to ensure that there is interest-free access to loans for small businesses.”

Under the Informal and Micro Financing Scheme by Tekun, small businesses are entitled to a loan of up to RM10,000 interest-free as well as a moratorium of 12 months.

BSN and Agrobank will also provide a loan facility of up to RM75,000 zero interest for the first six months and a moratorium for the remaining six months.

In terms of alternative financing, Tengku Zafrul said the government has come up with a new framework to help businesses recover.

“To help businesses which are facing problems of gearing or leverage, a RM2.1 billion facility through equity investment and quasi-equity investment will be introduced.

“This will be spearheaded by SME Bank along with Teraju and BNS with a fund of RM600 billion and open to all businesses especially Bumiputera entrepreneurs. 

“We will also be offering Rehabilitation and Support Through Equity schemes while BNM will be providing a Business Recapitalisation Fund worth RM1 billion for the same purpose.”

For SME, Tengku Zafrul said RM14.2 billion has been allocated through BNM’s Targeted Relief and Recovery Facility which has been increased to RM2 billion.

“As it stands, there is RM11.2 billion in this fund.”

Other banking institutions such as SME Bank, Agrobank, and Mara will also make violable loan facilities for SMEs.

In order to help businesses operate under the strict standard operating procedures set by the government, Tengku Zafrul said the government will provide tax relief of up to RM300,000 until December 2022 for employers to upgrade their facilities.

“This is to allow upgrading works such as ventilation systems and space for customers and employees.”

Companies registered under Safe@Work initiative will receive an additional tax break of RM50,000 to cover rental for employees. 

The government will also provide a deferment of income tax instalment payment to micro, small and medium sized businesses for six months until June 30, 2022.

To drive up the employment rate, Putrajaya has allocated RM4.8 billion to incentive employers under the JaminKerja Scheme.

A total of RM2 billion will be allocated to encourage employers to hire jobless individuals and the move will benefit 300,000 individuals.

“Under this initiative, employers will receive an incentive of 20% of the monthly salary for the first six months and 30% for the next six months subject to employment with a salary of RM1,500 and above.

For OKU and Orang Asli, the government will provide a 30% wage subsidy for the first six months followed by 40% for the next six months for salaries above RM1,200.

For women, single mothers and housewives, the government will provide a 30% wage subsidy for the first six months and 40% for the next six months for salaries above RM1,200. – October 29, 2021.