BNM TO PROVIDE INITIATIVES TO CUSHION CHALLENGING ECONOMIC IMPACT

KUALA LUMPUR, Nov 6 -- Recognising the economic environment remains challenging to some, Bank Negara Malaysia (BNM) will provide initiatives including additional financing facilities and enhancements to the targeted repayment assistance. 

In a statement today, the central bank said these measures were part of continuous efforts by the financial industry to support economic recovery while also safeguarding the livelihoods of Malaysians.

BNM will establish additional financing facilities to provide relief and support recovery for small and medium enterprises (SMEs), including the RM2 billion Targeted Relief and Recovery Facility (TRRF). 

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Offered at a concessionary rate of up to 3.5 per cent, the TRRF will be available through participating financial institutions, with guarantee coverage by Syarikat Jaminan Pembiayaan Perniagaan and Credit Guarantee Corp.

“The facility will be open for applications from Dec 1, 2020,” said the central bank.

As the high-tech sectors and innovation-driven firms are instrumental to realising new growth opportunities, the RM500 million High Tech Facility (HTF) aims to sustain Malaysia’s competitive positioning in global value chains and safeguard high-skilled jobs.

The central bank said further details on the HTF would be announced on Dec 1. 

Meanwhile, BNM said the Micro Enterprises Facility would be increased to RM410 million from RM300 million, with an available balance of RM200 million to support microenterprises including gig workers on digital platforms and the self-employed.  

In tandem with the increase in allocation to the Malaysian Employers Federation, the iTEKAD programme will be expanded with the participation of more Islamic banks and will be done in collaboration with a wider network of states and implementation partners, which will be participating in the iTEKAD programme in 2021.

The central bank said financial assistance would be provided by the government for the B40 segment in the form of vouchers to purchase insurance and takaful coverage under Perlindungan Tenang scheme from licensed insurers and takaful operators. 

“The financial assistance of RM50 voucher will be given to eligible Bantuan Prihatin Nasional recipients to help them purchase Perlindungan Tenang products starting April 1, 2021,” it added.  

-- BERNAMA