Malaysia to curate programme to help SMEs with cash flow problems
Malaysia’s Credit Counselling and Debt Management Agency (AKPK) is working on a temporary relief programme to help SMEs with cash flow problems.
The borrowers would start encountering this problem once the repayment assistance under the National People’s Well-Being and Economic Recovery Package (Pemulih) ended as their income would be affected, said Deputy Finance Minister II Yamani Hafez Musa.
He also added that the details of the programme would be announced in the near future. The minister cited three reasons why some loan applications from SMEs were rejected by banks, which are insufficient cash flow, business not being viable and high levels of debt.
“Entrepreneurs who need advisory services can contact SME customer service centres at financial institutions and Bank Negara Malaysia (BNM) Telelink on its website telelink.bnm.gov.my and Credit Guarantee Corporation Bhd, which provides an online platform that matches SMEs with appropriate financing based on business profile and scope of financing requirements,” he said.
Altogether, total financing facilities approved under BNM for the period of March 6, 2020 to July 28, 2021 amounted to RM$16 billion (US$3.85 billion), involving 37,959 SME accounts with an approval rate of 80% for the total applications.