KUALA LUMPUR (Oct 29): A further allocation of RM4.5 billion will be part of the additional assistance to be provided to small and medium enterprises (SMEs) and individuals under Budget 2022, said Bank Negara Malaysia (BNM).
It will also include a further RM20 million to aid microenterprises from low-income groups through iTEKAD, and the Perlindungan Tenang Voucher (PTV) programme for eligible B40 recipients is set to continue in 2022, the central bank said in a statement.
Of the additional RM4.5 billion to be allocated under BNM's Fund for SMEs, RM2 billion will be added to the Targeted Relief and Recovery Facility, bringing its total allocation to RM8 billion.
The Agrofood Facility will also be upsized by RM500 million, raising its total allocation to RM2 billion.
BNM will also make available two new facilities — the Business Recapitalisation Facility (BRF) and the Low Carbon Transition Facility (LCTF) — from January 2022.
The central bank said the RM1 billion BRF will be created to strengthen the capital structures of businesses and will help businesses seek financing while better manage their indebtedness levels to be more sustainable.
"Under the BRF, SMEs may obtain either financing in the form of equity or equity-type instruments, or debt financing combined with equity in partnership with third-party equity financiers (blended finance)," it added.
As for the RM1 billion LCTF, it will be established on a matching basis by participating financial institutions to help SMEs embrace sustainable and low carbon practices in their business operations.
"This includes increasing usage of sustainable raw materials and renewable energy, and to also improve energy efficiency of buildings or machinery," the central bank added.
In terms of additional assistance for micro-entrepreneurs from low-income groups, BNM said RM20 million will be allocated through iTEKAD — a blended social finance programme by Islamic banks offering seed capital, microfinancing and structured training to micro-entrepreneurs in collaboration with implementation partners.
"To further expand the initiative to enable greater participation from financial institutions, the government has agreed to allocate RM20 million to increase the seed capital of the programme," it said.
Additionally, besides continuing the PTV programme in 2022, the central bank said it will increase its voucher value from RM50 to RM75.
BNM said that under this programme, eligible B40 recipients will be provided vouchers which they can use to purchase Perlindungan Tenang products — basic insurance or takaful plans which are simple and affordable — from insurers and takaful operators.
"The government will also extend the stamp duty exemption for insurance and takaful products with less than RM150 annual premium/contribution for individuals and RM250 for micro-SMEs.
"Collectively, these measures will enable Malaysians to enjoy more affordable protection coverage," it added.
See more Budget 2022 highlights here.