KUALA LUMPUR, Dec 21 (Bernama) -- In the aftermath of the most devastating flood disaster in Malaysian history, Nitesh Malani, Chairman of Yayasan Usahawan Malaysia and founder of the SME and Entrepreneurs Business Awards (SEBA), urges the government to provide a moratorium on bank loan repayment for SMEs to ease the burden of these businesses in their recovery period. 
 
After a lengthy period of business shutdown and financial constraints due to the COVID-19 pandemic, businesses are beginning to recover, only to be struck by another tragedy. The flood has impacted an estimated of up to 18,000 SMEs and entrepreneurs, with the majority reporting significant damage to cars, machinery, and inventories, many of which cost millions of ringgit.
 
Bank Negara Malaysia (BNM) has established the Disaster Relief Facility 2022 with a total of RM 200 million fund allocation to help alleviate the financial burden of MSMEs affected by the flood and assist them in resuming business operations. BNM grants up to RM 500,000 per SME and RM 75,000 per micro-enterprise. Effective December 27, 2021, businesses and entrepreneurs may start applying for this assistance until further notice. The financing period of up to five years comprises a six-month moratorium on principal and interest/profit payments.
 
Other government initiatives to aid flood-affected SMEs include RM5,000 in interest-free funding from Bank Simpanan Nasional and RM30 million in loans from Tekun Nasional.
 
"I urge the Ministry of Entrepreneur Development and Cooperatives (MEDAC) to develop an immediate strategy to aid and assist these SMEs in their recovery from what appears to be the country's most devastating flood calamity.

In addition to the funds provided by Bank Negara Malaysia, I urge the government to go a step further and propose an interest-free loan repayment moratorium for affected SMEs. The government must develop a strategic planning team to address and alleviate the suffering of SMEs during these difficult times. Only with this precise strategic team in place will they be able to plan the next strategy for aiding these SMEs and entrepreneurs.

More needs to be done to assist MSME and prompt action  my key agencies and private financial institutions needs to be executed. It's about livelihood of thousands as most people have lost everything including savings. Bureaucracy needs to be removed in this moment of need more importantly to support all effected businesses. Yayasan Usahawan Malaysia is willing to assist businesses in whichever manner we can," Nitesh says. 

YUM will commence an immediate effort in reaching out to as many businesses that requires assistance via a specific hotline and MSME can also connect with us via msmehelp@mypreneurship.org

Source: Yayasan Usahawan Malaysia  

FOR MORE INFORMATION, PLEASE CONTACT: 
Name : Ms. Rachel Khiew
Tel : +6 012 321 9790
Email : rachel@seba.asia

--BERNAMA