Govt offers RM1.6 bil financing aid for contractors to kick-start small scale public projects

Govt offers RM1.6 bil financing aid for contractors to kick-start small scale public projects
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KUALA LUMPUR (June 5): The Government has allocated RM1.6 billion to provide liquidity for small and medium size contractors to kick-start public projects that have been awarded to them.

Under this programme, dubbed the SME Go-Scheme, Prime Minister Tan Sri Muhyiddin announced that SME Bank will provide financing support to contractors and vendors who were awarded small Government projects under the Economic Stimulus Package 2020 and the PRIHATIN stimulus package.

These small scale projects carry an aggregate value of RM4 billion.

“For the convenience of the contractors, no collateral or deposit is required,” said Muhyiddin, adding that the scheme will benefit 16,000 G2 & G3 contractors.

The Government is also offering an extra RM700 million in the form of loans and grants to small and medium enterprises (SMEs) and mid-tier companies for adoption or subscription of digitalisation services.

Muhyiddin announced that the RM700 million loans and grants include the SME Digitalisation Matching Grant totalling RM100 million, which is in partnership with telecommunication companies, the SME Technology Transformation Fund totalling RM500 million loan, and the Smart Automation Grant totalling RM100 million, capped at up to RM1 million per company.

There is also an allocation of RM500 million worth of financial support to ensure the sustainability of shariah compliant Bumiputera entrepreneurs.

Of this, RM200 million financing will be offered by the Perbadanan Usahawan Nasional Bhd (PUNB) to Bumiputera-owned shariah compliant businesses in the form of working capital, operational expenditure, system automation, equipment and expenditure to implement social distancing practices as well as financing between RM100,000 – RM1 million for up to five years at 3.5% profit rates.

Another RM300 million will be channeled through MARA to assist affected Bumiputera entrepreneurs including training colleges, to get financing for working capital.