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Ministry of Finance Increases BNM Disaster Relief Facility to RM500 Million for Flood Affected MSMEs | Malaysia

The Ministry of Finance (MoF) reiterated the increase in funding for the Disaster Relief Facility (DRF) 2022 by Bank Negara Malaysia to RM500 million. – Photo by Shafwan Zaidon

KUALA LUMPUR, December 26 – The Ministry of Finance (MoF) has reiterated the 2022 increase in funding for the Disaster Relief Facility (DRF) by Bank Negara Malaysia. from RM200 million to RM500 million.

Financing facilities will be provided through commercial banks for micro, small and medium enterprises (MSMEs) to finance the replacement of flood damaged equipment, as well as for working capital.

“Funding of up to RM 500,000 will be given to SMEs; while micro-entrepreneurs can borrow up to RM75,000. The funding period can be up to five years, including a six-month repayment moratorium, ”Finance Minister Tengku Datuk Seri Zafrul Abdul Aziz said in a statement.

The financing rate is 3.5% per year, including warranty costs. Applications can be filed with commercial banks from December 27, 2021.

The government will continue to monitor the situation and the Ministry of Finance in particular will always stand ready to provide adequate allocations to help flood victims as soon as possible.

The DRF funding increase was announced by Prime Minister Datuk Seri Ismail Sabri Yaakob on December 22, 2021, as an aid initiative aimed at alleviating the burden of flood victims. – Bernama