THE GOVERNMENT will today launch the RM40 billion SemarakNiaga Keluarga Malaysia Programme to assist businesses in recovering from the effects of the Covid-19 epidemic and creating jobs.
Prime Minister Datuk Seri Ismail Sabri Yaakob stated that the scheme would benefit micro, small, and medium-sized businesses (MSMEs).
He stated that RM40 billion has been provided in the 2022 Budget, which comprises various sources of funding such as equity infusions.
He stated that the SemarakNiaga programme was open to all firms, from micro-enterprises to publicly traded companies.
The prime minister stated that the government will assist MSMEs, which were the hardest hit by the pandemic, through financing initiatives such as direct loans or matching grants.
He stated that Syarikat Jaminan Pembiayaan Perniagaan (SJPP) guarantees worth RM22 billion, including RM2 billion for Bumiputeras, would make it easier for SMEs to request for additional financing.
“Most certainly, they will find it difficult to restart their business or continue operations, particularly if they have a large amount of debt or liabilities.
“Hence, SemarakNiaga not only supports businesses by providing working capital injections or financing, but also through equity injections or taking up shares or an equity stake in a company for businesses affected by the Covid-19 pandemic.
“Taking up equity stake is a novel and innovative solution that has never been implemented before. The government is confident that this initiative will help the entrepreneurs to recover and move forward.
“We are also creating more jobs while restoring the livelihoods of Keluarga Malaysia,” he said in a written reply to questions on the SemarakNiaga programme.
According to Ismail Sabri, the programme is expected to reduce unemployment to less than 4% by the end of the year.
He said the recent announcements by the Statistics Department and Bank Negara Malaysia that the GDP would grow by 3.1% in 2021, compared to a 5.6% contraction in 2020, were a promising omen.
He stated that the government was convinced that job-creation and business-empowerment actions in the 2022 Budget would contribute to this year’s predicted GDP growth of 5.5 to 6.5 percent.
According to Ismail Sabri, SemarakNiaga intends to maintain the country’s recovery pace beginning in the fourth quarter of 2021.
He stated that the programme would assist businesses in developing workers’ skills and enabling reforms that would transition the country to a sustainable economy, as enabled by Digital Transformation and IR4.0.
“The government, through relevant agencies, has crafted alternative financing and financing schemes for MSMEs and other affected businesses, allowing them to recover and generate revenue once more.
“Efforts towards digital enablement include grants for SME digitalisation and smart automation, matching grants to accelerate digital transformation as well as assistance for the gig economy players and start-ups to better navigate the world of commerce and business.”
Ismail Sabri also urged all government agencies, the private sector, non-governmental organisations, government-linked corporations, and government-linked investment firms to work together to carry out the SemarakNiaga programme.
“The allocation of more than RM40 billion for the SemarakNiaga Keluarga Malaysia Programme in the 2022 Budget consists of RM1.8 billion in Micro Credit Loans, RM2.2 billion in Equity/Alternative Financing, RM14.2 billion in SME Soft Loans and RM22 billion in Guarantees through SJPP.
“For MSMEs, the government had never before provided such a sizable RM1.8 billion-funding with a moratorium feature of up to 12 months.”
MSMEs owners interested in the SemarakNiaga programme may the 2022 Budget portal at budget.mof.gov.my/manfaat/.
