SME Bank offering RM2.1 billion to rejuvenate construction, services and manufacturing

File photo for illustration purposes

KUCHING, June 10: SME Bank is allocating up to RM2.1 billion for the SME Go Scheme and SME Technology Transformation Fund (STTF) to revitalise economic activities in the construction as well as services and manufacturing sectors.

Minister of Entrepreneur Development and Cooperatives (Medac) Datuk Seri Dr Wan Junaidi Tuanku Jaafar pointed out that the allocation is targeted at helping G2 and G3 contractors especially to navigate through these difficult times.

“It is also to increase adoption of technology under the Fourth Industrial Revolution (IR 4.0) by the SMEs (small and medium enterprises) to face the new norm,” he revealed in a media release today.

SME Bank’s initiative is in line with Prime Minister Tan Sri Muhyiddin Yassin’s announcement on June 5 where SMEs in targeted sectors will be given a lifeline by banks who are offering funds of RM2 billion through financing schemes under the economic recovery plan dubbed Penjana.

SME Bank group president and chief executive officer (CEO) Aria Putera Ismail highlighted that the two-year acceleration programme involving digital transformation in 2019 has well positioned the bank to implement its mandated roles as well as support the government in executing key initiatives to help SMEs to sustain operations during the Covid-19 pandemic.

Meanwhile, the SME Go Scheme and STTF will be made available starting from July 2020.

The SME Go Scheme, with RM1.6 billion in funds available, will provide financing to 16,000 qualified G2 and G3 contractors as working capital financing for the pre-implementation stage of construction, supply or maintenance contracts awarded by the federal or state governments, ministries, departments or agencies.

Financing is provided up to 100 per cent of contract cost or up to a maximum of RM1 million

For the convenience of the contractor, no upfront collateral is required but the bank is entitled to the proceeds of the contract from the contract awarded.

The bank will issue the Advance Payment Guarantee at 25 per cent of the contract value or RM100,000, whichever is lower.

Under the STTF with RM500 million in funds available, the bank is targeting SMEs in the services and manufacturing sectors for the purchasing of equipment, machinery, computer hardware and software, IT solutions and services, technology support services, and other intangible assets to enhance productivity, efficiency and greater market penetration.

Financing is provided up to 80 per cent of the acquisition cost or up to a maximum of RM3 million. The asset to be financed shall be the collateral for the financing.

For more information about the SME Go Scheme, STTF and other services offered by SME Bank, call its Customer Contact Centre at 03-26037700 or visit the bank’s official website at — DayakDaily