{"id":17932,"date":"2020-11-10T19:00:00","date_gmt":"2020-11-10T11:00:00","guid":{"rendered":"https:\/\/www.comparehero.my\/blog\/uncategorized\/bnm-assist-individuals-smes-affected-by-covid-19.html"},"modified":"2026-03-26T16:02:07","modified_gmt":"2026-03-26T08:02:07","slug":"bnm-assist-individuals-smes-affected-by-covid-19","status":"publish","type":"post","link":"https:\/\/www.comparehero.my\/blog\/government-policy\/bnm-assist-individuals-smes-affected-by-covid-19.html","title":{"rendered":"BNM Announces Additional Measures To Assist Individuals And SMEs Affected By COVID-19"},"content":{"rendered":"\n

Bank Negara Malaysia (BNM) has recently announced that it will establish additional financing measures to provide relief and support to small and medium enterprises (SMEs), following the release of Budget 2021 by the Ministry of Finance last week.<\/p> \n

These measures, which include additional targeted repayment assistance for individuals and SME borrowers, and several other initiatives, are part of continuous efforts by the financial industry to support economic recovery, while also safeguarding the livelihoods of Malaysians.<\/p> \n

Let\u2019s break down the different initiatives:<\/p> \n

1. BNM\u2019s fund for SMEs<\/strong><\/h3> \n

a) Establishment of the RM2 billion Targeted Relief and Recovery Facility (TRRF)<\/strong><\/p> \n

The RM2 billion facility is for eligible SMEs whose revenues have been affected by the recent enhanced and conditional movement control orders.<\/p> \n

In addition, SMEs in targeted vulnerable sectors, namely personal services, food and beverage services, human health and social work, arts, entertainment and recreation subsectors, will also be eligible for the TRRF.<\/p> \n

Offered at a concessionary rate of up to 3.5%, the TRRF will be available through participating financial institutions, with guarantee coverage by Syarikat Jaminan Pembiayaan Perniagaan (SJPP) and Credit Guarantee Corporation (CGC).<\/p> \n

The facility will be open for applications from 1 December 2020 onwards.<\/strong><\/p> \n

Visit BNM\u2019s dedicated page<\/a> for more information on TRRF.<\/strong><\/p> \n

b) Establishment of the RM500 million High Tech Facility (HTF)<\/strong><\/p> \n

The RM500 million facility is to support SMEs in high-tech sectors, for example fertilisers and synthetic rubber, basic chemicals, refined petroleum products, biotech pharmaceuticals, as well as air and spacecraft sub-sectors.<\/p> \n

The HTF aims to sustain Malaysia\u2019s competitive positioning in global value chains and safeguard high-skilled jobs, as the high-tech sector and innovation-driven firms are instrumental in realising new growth opportunities for the country.<\/p> \n

Further details on the HTF will be announced on 1 December 2020.<\/strong><\/p> \n

c) RM110 million increase in allocation for the Micro Enterprises Facility (MEF)<\/strong><\/p> \n

This facility will be increased from RM300 million to RM410 million, with an available balance of RM200 million to support microenterprises including gig workers on digital platforms and the self-employed. The facility is for working capital and capital expenditure.<\/p> \n

Visit BNM\u2019s dedicated page<\/a> for more information on MEF.<\/strong><\/p> \n

2. Enhancements to the Targeted Repayment Assistance (TRA)<\/strong><\/h3> \n

The banking industry has agreed to provide additional targeted repayment assistance for individuals and SME borrowers.<\/p> \n

These enhancements are an addition to what has been previously announced for those who have lost their jobs, and for individuals and SMEs whose incomes have been affected by the pandemic.<\/p> \n

Borrowers can also continue to approach their banks for tailored repayment assistance based on their specific financial circumstances. Banks will stand ready to provide support to borrowers that need assistance.<\/p> \n

3. Other initiatives to aid individuals and SMEs<\/strong><\/h3> \n

In addition, the Malaysian government, BNM and the financial industry are collaborating on several other initiatives to further assist individuals and SMEs:<\/p> \n

a) Expansion of iTEKAD programme<\/strong><\/p> \n

Launched in May 2020, it combines social finance instruments such as zakat, sadaqah and waqf with the provision of microfinancing, structured training and mentorship.<\/p> \n

These instruments aim to empower micro-entrepreneurs from the B40 segment to generate sustainable income and achieve financial resilience.<\/p> \n

In tandem with the increase in allocation to MEF, the iTEKAD programme will be expanded to include participation from Islamic banks, allowing a wider collaboration and implementation of states and partners.<\/p> \n

b) Perlindungan Tenang Protection for B40<\/strong><\/p> \n

Other financial assistance includes the distribution of vouchers for the B40 segment to purchase insurance and takaful coverage from licensed insurers and takaful operators under the Perlindungan Tenang scheme.<\/p> \n

The RM50 vouchers will be given to eligible BPN recipients to help them purchase the products, starting 1 April 2021.<\/p> \n

Approved by BNM to meet the needs of underserved market segments, the Perlindungan Tenang product comes with stringent criteria on affordability and customer value, with minimal exclusions to ease claims and ensure meaningful protections, particularly for lower-income groups. The product also includes protection for life takaful and personal accidents.<\/p> \n

For more information on Perlindungan Tenang, and to obtain a list of participating providers, you can refer to their dedicated page<\/a>.<\/p> \n

Additional assistance for B40 and microenterprise borrowers<\/h2> \n

Additional repayment assistance will be rolled out to borrowers in the following categories:<\/p> \n