Government through the Ministry of Development Entrepreneurs and Cooperatives (MEDAC) are very concerned about the impact and effects of transmission Covid-19 on small and medium enterprises (SMEs), micro-enterprises and cooperatives. Given the latest implementation of Movement Control Order (MCO) from March 18 to April 14, 2020, across the country, many SMEs, micro-enterprises and cooperatives are receiving direct impressions.
To ease the burden and help those entrepreneurs affected, MEDAC has taken some proactive steps and announcements in giving temporary suspension of repayment for entrepreneurs and cooperatives financing commitments under Bank Rakyat, TEKUN Nasional and SME Bank as of March 16, 2020.
1. Temporary suspension of repayment, financing assistance, full saving withdrawal and rescheduling payment
TEKUN Nasional
- All TEKUN entrepreneurs who are still in the financing phase are eligible to be given a maximum temporary suspension of repayment up to six (6) months.
- Assistance in the form of overlapping financing with increasing the amount of financing from the existing financing balance can be given to TEKUN National entrepreneurs affected with a maximum value up to RM10,000.
- Entrepreneurs are also allowed special exceptions to withdraw all savings. Withdrawal of savings is subject to the balance of previous financing savings and withdrawal of savings for Current financing (if any) is not allowed.
- It is expected that 20,000 TEKUN entrepreneurs will be able to utilise this financial aid with an estimated cost of RM180 million.
Malaysia Co-operative Societies Commission (MCSM)
- The cooperative is given an additional three (3) months to hold the Meeting Annual General. The extension of this period is expected to benefit from 14,600 cooperatives.
- Cooperatives can also apply for a temporary suspension of repayment Tabung Modal Pusingan (TMP-JPK) and other financings available by SKM. This suspension is expected to involve an estimated cost of RM16.5 million.
Bank Rakyat
- Offer a moratorium on individuals and companies in the industry affected such as airline, travel and transportation with six (6) month suspension period.
- A 50% reduction in interest for money withdrawal compared to 18% interest before.
SME Bank
- Temporary suspension of repayment initiative for six (6) months as well as loan restructuring according to the case. The suspension is expected will benefit over 2,800 SME Bank customers with a financing value of RM4.5 billion.
2. Rental exemption or rent reduction
UDA Holdings Bhd
- Exemption or reduction of rent to tenant and premises owned by UDA Holdings Bhd.
- A total of 1,500 tenants are expected to benefit from this assistance with a cost of RM4 million.
Malaysia Co-operative Societies Commission (MCSM)
- Co-operatives are given consideration of reducing the rental buildings managed by MCSM up to a maximum of 50% for a given time period.
Malaysian Global Innovation and Creativity Centre (MAGIC)
- Exemption for five (5) month rentals to Co-Working tenants Space (CWS) in MAGIC, Cyberjaya and B744 Kuching.
- A total of 50 entrepreneurs will benefit from this.
SME Bank
- Provides a suspension of up to six (6) months for the Complex rental SME Bank Entrepreneurial Premises involves 248 tenants with savings rental costs amounted to RM2.3 million
3. Business financing
Bank Rakyat
- Provides additional financing of RM200 million to meet the needs of cooperatives and micro enterprises and SMEs from 23 March 2020, subject to the conditions stipulated. A total of 500 cooperatives and 2,000 micro SMEs will be able to enjoy the benefits of the financing. The financing program includes the Special Financing Program BizCare for SME, micro and cooperative entrepreneurs and Programs Credit Card Cash Advance-i.
SME Bank
- Assists in financing up to RM1 million for a period of 5.5 year at 3.75% to eligible entrepreneurs under the scheme Special Relief Facility (SRF) provided by Bank Negara Malaysia (BNM).
4. Entrepreneurship and business training
- Entrepreneurial and business training and programs will continue online by INSKEN, Magic and the Malaysian Cooperative Institute (IKM).
- Refund of registration fee for program cancelled by INSKEN.
5. Bumiputera Status Certificate approval
- Registration of Bumiputera status certificate will be approved even investigation premise is not executed. After that date, the investigation will be re-implemented and the registration license will be denied for the company who did not meet the Bumiputera status.
Any questions regarding the initiatives announced by MEDAC can be reached at www.medac.gov.my
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