• Additional RM4.5 billion allocated under BNM’s Fund for SMEs
• Additional RM20 million to aid micro-entrepreneurs from low-income groups through iTEKAD
• Perlindungan Tenang Voucher Programme for eligible B40 recipients to continue in 2022

Bank Negara Malaysia (BNM) wishes to share further details on the additional assistance to be implemented by BNM and the financial industry as announced in the Budget 2022 speech by the Minister of Finance, YB Senator Tengku Datuk Seri Utama Zafrul bin Tengku Abdul Aziz.

Enhancements to BNM’s Fund for SMEs

BNM will make various enhancements to its Fund for SMEs to support businesses impacted by the pandemic.

The allocations under two existing facilities will be increased:

• RM2 billion will be added to the Targeted Relief and Recovery Facility (TRRF), bringing the total allocation to RM8 billion.
• The Agrofood Facility (AF) will also be upsized by RM500 million, raising the total allocation to RM2 billion.

BNM will also create two new facilities which will be available from January 2022:

1. A RM1 billion Business Recapitalisation Facility (BRF) will be created to strengthen the capital structures of businesses. This facility will help businesses seek financing while better managing their indebtedness levels to be more sustainable. Under the BRF, SMEs may obtain either:
   1. financing in the form of equity or equity-type instruments, or;
   2. debt financing combined with equity in partnership with third-party equity financiers (blended finance)
2. A RM1 billion Low Carbon Transition Facility (LCTF) will be established on a matching basis by participating financial institutions to help SMEs embrace sustainable and low carbon practices in their business operations. This includes to increase usage of sustainable raw materials and renewable energy, and to also improve energy efficiency of buildings or machinery.

These enhancements represent a RM4.5 billion increase in allocation to BNM’s Fund for SMEs.

In addition to these facilities, other facilities which include the High Tech Facility – National Investment Aspirations (HTF-NIA), SME Automation and Digitalisation Facility (ADF) and Micro Enterprises Facility (MEF) continue to be offered under the Fund. In all, the total available funds under the Fund for SMEs stands at RM11.2 billion.

For more information, please visit bnm.gov.my/covid19.

Additional RM20 million allocation for micro-entrepreneurs from low-income groups through iTEKAD

iTEKAD is a blended social finance programme by Islamic banks offering seed capital, microfinancing and structured training to micro-entrepreneurs in collaboration with implementation partners. To further expand the initiative to enable greater participation from financial institutions, the Government has agreed to allocate RM20 million to increase the seed capital of the programme.

For more information, please visit bnm.gov.my/covid19.

Extension of Perlindungan Tenang Voucher (PTV) Programme and stamp duty exemption

The PTV Programme will continue in 2022, with an increase in the voucher value from RM50 to RM75. Under this programme, eligible B40 recipients will be provided vouchers which they can use to purchase Perlindungan Tenang products from insurers and takaful operators. Perlindungan Tenang products are basic insurance or takaful plans which are simple and affordable. For more information, please visit mycoverage.my/perlindungan_tenang and www.myptv.my to check eligibility for the voucher.

The Government will also extend the stamp duty exemption for insurance and takaful products with less than RM150 annual premium/contribution for individuals and RM250 for micro-SMEs. 

Collectively, these measures will enable Malaysians to enjoy more affordable protection coverage.

See also:

• BNM's Fund for SMEs and Other Initiatives, including iTEKAD
• Perlindungan Tenang Voucher Programme