KUALA LUMPUR: SME Corporation Malaysia (SME Corp), an agency under the Ministry of Entrepreneur Development and Cooperatives (Medac), has allocated RM10 million for the Micro, Small and Medium Enterprise (MSME) Digital Financing programme that offers access to short-term financing via a digital platform.
SME Corp CEO Rizal Nainy said the programme is open to all MSME, especially those affected by the Covid-19 pandemic and floods.
“This financing initiative is timely to assist MSME affected by the recent flood disaster, and with this platform, it will be easier and faster to obtain financing,” he told a media conference after the launch of the financing programme and the SMIDEX 2021 closing ceremony today.
The event was officiated by Medac secretary-general Datuk Suriani Ahmad.
According to Rizal, there are 1.15 million MSME throughout Malaysia, of which 226,000 are in Selangor.
He estimated about 50,000 MSME have been affected by the recent floods in Selangor especially in Shah Alam and Hulu Langat.
Rizal said microLEAP, a peer-to-peer microfinancing operator regulated by the Securities Commission, has been appointed to offer loans via the digital platform.
“Interested MSME can apply for short-term loans of between RM50,000 and RM500,000 at a low fixed rate of 2% per annum for the purpose of working capital and activities to increase capabilities.
“Applications are fully made online and it will take only up to 14 working days for the applications to be considered,” he said.
He added that the financing may also be converted into a matching grant of up to 50% of the total approved financing.
“The conversion is based on capacity-building initiatives such as licensing, certification and packaging,” he noted.
Meanwhile, microLEAP chief operating officer Matthew Fernandez said that to date, 32 MSME have received financing valued at nearly RM9.9 million.
“We target to assist 40 MSME under this pilot project to offer shariah-compliant products that they can apply for at any time,” he added. – Bernama