3 March 2021
On 5 February 2021, Bank Negara Malaysia ("BNM") announced:
• an additional RM2 billion for the Targeted Relief and Recovery Facility (“TRRF”);
• the establishment of a RM200 million Disaster Relief Facility (“DRF”) 2021.
TRRF
The TRRF was a facility announced in the Budget 2021, established to assist eligible SMEs in the services sector. With the additional RM2 billion injection, the total allocation of the TRRF increases to RM4 billion. The TRRF will be available until 31 December 2021 or until full utilisation, whichever is earlier.
Additionally, BNM has announced that SMEs that are recipients of the Special Relief Facility and PENJANA SME Financing are now eligible to apply for TRRF, subject to a total financing limit not exceeding RM500,000. This represents a shift from BNM’s previous position when the fund initially launched, when recipients of the Special Relief Fund and PENJANA SME Financing were not eligible for the TRRF.
DRF 2021
The DRF 2021, with an allocation of RM200 million, is established to ease the financial burden and assist in the resumption of business operations of SMEs affected by the recent floods in districts identified by Agensi Pengurusan Bencana Negara as flood disaster areas.
DRF 2021 aims to assist SMEs cover the costs of repairs and replacements of damaged assets for business use. Available to Malaysian SMEs, including microenterprises, the maximum amount of financing is RM500,000 per SME and up to RM75,000 per micro enterprise. The tenure of the financing is up to five years and includes a moratorium period of six months on both principal and interest payments. The financing rate is up to 3.50% per annum, inclusive of guarantee fee.
The facility will be available until 31 July 2021 or until full utilisation, whichever is earlier.
The full announcement is available here.
For further information, please contact:
Dhinesh Bhaskaran, Managing Partner, Shearn Delamore & Co
dhinesh@shearndelamore.com
