Malaysia’s central bank allocates additional RM$4 billion loan facility
Malaysia’s central bank has allocated an additional RM$4 billion (US$0.96 billion) for its Targeted Relief and Recovery Facility (TRRF), available through direct application from participating financial institutions.
The TRRF aims to provide relief and support the recovery of SMEs in the services sector, and brings the total allocation to RM$6 billion (US$1.44 billion).
It has also increased the allocation for the All Economic Sector (AES) Facility by RM$2 billion (US$0.48 billion), bringing the total allocation to RM$6.5 billion (US$1.56 billion). The AES is open to SMEs from all sectors of the economy.
The central bank also enhanced the TRRF and Penjana Tourism Financing (PTF), allowing SMEs to utilise part of the financing proceeds to repay existing business loans. The PTF aims to support SMEs in the tourism sector, helping them remain viable post-pandemic, it added.
The maximum amount that can be used for refinancing is up to 30% of the approved financing for the TRRF, and up to 50% of the approved financing for the PTF, it said in a statement.