SARAWAK will disburse a RM1 billion special relief fund for the state’s small and medium enterprises (SMEs) through seven banks.

The banks are Maybank, Hong Leong Bank, RHB Bank, CIMB Bank, Public Bank, Bank Muamalat and SME Bank.

The banks exchanged a memorandum of agreement with the state government today witnessed by Chief Minister Abang Johari Openg.

Under the agreement, the Sarawak government will absorb the interest on the 42-month loans.

The fund was made available under the state government’s second economic assistance package Bantuan Khas Sayang Sarawak which was rolled out on April 10 to help mitigate the effects of the Covid-19 pandemic on the economy.

The applicant must be a registered entity and fit the National SME Development Council’s (NSDC) definition of an SME. 

No collateral is required for the loans of between RM20,000 and RM500,000. 

Deputy Chief Minister Awang Tengah Ali Hassan said it will cost Sarawak RM80.7 million to subsidise the interest.

He said the government recognised the SME’s role as the key drivers and backbone of the state’s economy, and in providing jobs and business opportunities.

 “SMEs make up over 75% of our business sector, contribute 20% to Sarawak’s GDP and provide about 600,000 jobs.”

Under the second economic assistance package, SMEs are also granted rent waivers, particularly in the retail sector, on premises owned by state government-linked companies.

“These are in addition to other measures available to both individuals and businesses such as loan and land premium payment deferment, discount on utility bills, annual assessment rate and land rent announced in BKSS 1.0,” Awang Tengah, who is also the entrepreneur development minister, said.

The Sarawak government has launched three special economic assistance packages totalling RM2.25 billion to assist individuals and businesses weather the hard times brought about by the coronavirus outbreak and the consequent shutdowns.

The first package was announced on March 23, the second on April 10, and the third on May 8. – May 20, 2020.