Financing Facility to assist Malaysian SMEs

1

BNM’s Fund For SMEs - All Economic Sector (AES)

Objective

To enhance access to financing for SMEs to support growth

Eligibility criteria

Malaysian SMEs¹ who fulfil the following criteria:

Registered with the Companies Commission of Malaysia (SSM), authorities’/district offices in Sabah and Sarawak or statutory bodies for professional service providers.
Shareholding by Public Listed Companies and Government Linked Companies (if any) in the SMEs shall not exceed 20%.
Malaysians residing in Malaysia hold a minimum of 51% shareholding in the SMEs.

Purpose of financing

Working Capital and/or;
Capital Expenditure

(Not for refinancing of existing financing facilities)

Tenure

Up to 5 years

Financing size

Up to RM5 million per SME

Financing rate

Up to 7.0% p.a., inclusive of up to 1.0% p.a. guarantee fee (absorbed by RHB)

Facility Type

All Facilities

Guarantee coverage

Up to 80% of financing amount by Syarikat Jaminan Pembiayaan Perniagaan Berhad (SJPP)

¹At least 51% of shares are held by Malaysians and as defined by SME Corp. Malaysia’s Guideline for SME Definition, accessible at http://www.smecorp.gov.my/images/pdf/2023/Guideline_on_SME_Definition_Updated_September_2020_Final.pdf
Note: All applications are subjected to the Bank’s final decision.

2

BNM’s Fund For SMEs - Agrofood Facility (AF)

Objective

Increase agrofood production for Malaysia and for export purposes through the provision of financing at affordable rates

Eligibility criteria

Malaysian SMEs¹ that fulfil all of the following criteria shall be eligible for financing from the Facility:

Registered with the Companies Commission of Malaysia (SSM) or authorities’/district offices in Sabah and Sarawak or statutory bodies for professional service providers.
Shareholding by Public Listed Companies and Government Linked Companies (if any) in the SMEs shall not exceed 20%.
Malaysians residing in Malaysia hold a minimum of 51% shareholding in the SMEs.

Purpose of financing

Working Capital and/or;
Capital Expenditure
Development of agrofood projects

Tenure

Up to 8 years

Financing size

Up to RM5 million per SME

Financing rate

Up to 3.75% p.a., inclusive of 0.75% p.a. guarantee fee (absorbed by RHB)

Facility Type

All Facilities

Guarantee coverage

Up to 90% of financing amount by Syarikat Jaminan Pembiayaan Perniagaan Berhad (SJPP)

¹At least 51% of shares are held by Malaysians and as defined by SME Corp. Malaysia’s Guideline for SME Definition, accessible at http://www.smecorp.gov.my/images/pdf/2023/Guideline_on_SME_Definition_Updated_September_2020_Final.pdf
Note: All applications are subjected to the Bank’s final decision.

3

BNM’s Fund For SMEs - Automation & Digitalisation Facility (ADF)

Objective

To incentivise SMEs to automate processes and digitalise operations to increase productivity and efficiency.

Eligibility criteria

Malaysian SMEs¹ that fulfil all of the following criteria shall be eligible for financing from the Facility:

Registered with the Companies Commission of Malaysia (SSM) or authorities’/district offices in Sabah and Sarawak or statutory bodies for professional service providers.
Shareholding by Public Listed Companies and Government Linked Companies (if any) in the SMEs shall not exceed 20%.
Malaysians residing in Malaysia hold a minimum of 51% shareholding in the SMEs.

Purpose of financing

Purchase of equipment, machinery, computer hardware and software, IT solutions and services, technology support services and other tangible assets to enhance productivity and efficiency.
(Not for refinancing of existing financing facilities)

Tenure

Up to 10 years

Financing size

RM3 million per SME

Financing rate

Up to 4.0% p.a., inclusive of 0.50% p.a. guarantee fee (absorbed by RHB)

Facility Type

Term Loan (TL) / Commodity Murabahah Term Financing-i (CMTF-i) only

Guarantee coverage

Up to 80% of financing amount by Syarikat Jaminan Pembiayaan Perniagaan Berhad (SJPP)

¹At least 51% of shares are held by Malaysians and as defined by SME Corp. Malaysia’s Guideline for SME Definition, accessible at http://www.smecorp.gov.my/images/pdf/2023/Guideline_on_SME_Definition_Updated_September_2020_Final.pdf
Note: All applications are subjected to the Bank’s final decision.

4

BNM’s Fund For SMEs - Low Carbon Transition Facility (LCTF)

Objective

To encourage and support SMEs to adopt sustainable practices for business resilience

Eligibility criteria

SMEs¹ in all sectors

Purpose of financing

To fund capital expenditure or working capital to initiate or facilitate the transition to low carbon and sustainable operation

Tenure

Up to 10 years

Financing size per SME

Up to RM10 million

Financing rate to SMEs

Up to 5.0% p.a. (combined basis), inclusive of up to 1.0% p.a. guarantee fee (absorbed by RHB)

Guarantee coverage

Up to 80% of financing amount by Syarikat Jaminan Pembiayaan Perniagaan (SJPP) / Credit Guarantee Corporation Malaysia Berhad (CGC)

Type of facility

All facilities

Availability

Until full utilisation

¹At least 51% of shares are held by Malaysians and as defined by SME Corp. Malaysia’s Guideline for SME Definition, accessible at http://www.smecorp.gov.my/images/pdf/2023/Guideline_on_SME_Definition_Updated_September_2020_Final.pdf
Note: All applications are subjected to the Bank’s final decision.

5

BNM’s Fund For SMEs - Disaster Relief Facility (DRF)

Objective

To alleviate the financial burden of Malaysian SMEs (MSMEs) affected by floods and enable them to resume their business operations

Eligibility Criteria

SMEs¹ and micro enterprises affected by floods located in districts identified by Agensi Pengurusan Bencana Negara as flood disaster areas.

Purpose of Financing

Repairs and/or replacement of assets for business use (e.g. plants and machinery) which have been damaged by floods; and/or
Working capital

Note: Financing should not be used for refinancing of existing credit/financing facilities

Type of Financing

Applicable for Term Loan / Commodity Murabahah Term Financing-i ONLY.

Financing Size

Up to RM RM700,000 per SME
Up to RMRM150,000 per micro enterprise

Note: A collective financing limit is applicable for SMEs with common shareholder(s) of equal to or more than 20% shareholding

Financing Rate

Up to 3.50% p.a., inclusive of 0.50% guarantee fee (absorbed by RHB)

Financing Tenure

Maximum 7 years inclusive 6 months moratorium on principal & interest/profit; interest/profit is accrued, non-compounded)

Guarantee Coverage

Up to 80% of financing amount by Credit Guarantee Corporation Malaysia Berhad (CGC)

Available of Fund

Until full utilisation or subject to further decision by BNM

¹At least 51% shares held by Malaysians and as defined by SME Corp. Malaysia’s Guideline for SME Definition, accessible at http://www.smecorp.gov.my/images/pdf/2023/Guideline_on_SME_Definition_Updated_September_2020_Final.pdf
Note: All application is subject to Bank’s final decision

6

BNM’s Fund For SMEs - High Tech & Green Facility (HTG)

Objective

Designed to help SMEs and innovative start-ups to grow their businesses and invest in strategic sectors and technologies fields (digital tech, green tech and biotech) for a sustainable and entrenched economic recovery.

Eligibility Criteria

Malaysian SMEs¹ involved in the following sectors:

	Manufacturing	Electrical and Electronics (E&E) Chemicals Refined petroleum Machinery & Equipment (M&E) Medical devices and pharmaceuticals Automotive and transport equipment (including aerospace; vehicle and parts manufacturers)
	Services	Information and Communication Technology (ICT) Research and Development

OR

Businesses (including commercially ready start-ups) involved in providing technology solutions

	Green Technology	Renewable energy & energy efficiency Transportation - Clean transportation, electric vehicle, battery development Natural resources Sustainable water and waste management Aquatic conservation and pollution prevention Circular economy Reusing, recycling and remanufacturing Repurposing of stranded assets Agritech Precision and automated farming Vertical farming Farming using drones, IoT and big data analytics Low carbon technologies Low carbon-emitting technologies (Carbon, capture, utilisation and storage (CCUS), low carbon hydrogen)
	Digital and 4IR technology	Smart manufacturing (IoT solutions) Artificial Intelligence (AI) Big data analytics Virtual/ Augmented reality Robotics Drone technologies Connectivity and distributed infrastructure (5G, blockchain, cloud computing) 3D printing Software development (digital healthcare technology, e-commerce, fintech and payment platform, gaming mobility solutions)
	Biotechnology	Neurotechnology Biohealth (genetics) Biosciences (crop and yield improvement)

OR

SMEs and start-ups in key Government programmes that are involved in innovation and commercialisation for range of critical technologies such as 4IR-related technology, green technology, digital and biotechnology under national blueprints. List of eligible programmes will be updated periodically at www.bnm.gov.my/funds4sme

Note:

Recipients of Special Relief Facility (SRF), PENJANA SME Financing (PSF) and/or PENJANA Tourism Financing (PTF) are eligible for the HTG, for the purpose of financing capital expenditure only.
All programme participants are encouraged to obtain a letter from the respective agencies to ease verification process by PFIs.

Type of Facility

All facilities

Financing Size

Up to RM10 million

Financing Rate

Up to 5.0% p.a., inclusive of 0.50% p.a. guarantee fee (absorbed by RHB)

Financing Tenure

Up to 10 years

Guarantee Coverage

Up to 80% of financing amount by Syarikat Jaminan Pembiayaan Perniagaan (SJPP)

Available of Fund

Until full utilisation

¹At least 51% shares held by Malaysians and as defined by SME Corp. Malaysia’s Guideline for SME Definition, accessible at http://www.smecorp.gov.my/images/pdf/2023/Guideline_on_SME_Definition_Updated_September_2020_Final.pdf
Note: All applications are subjected to the Bank’s final decision.

7

BNM’s Fund For SMEs - PENJANA Tourism Financing (PTF)

	PENJANA Tourism Financing (PTF)
Objective	To support the recovery and growth of SMEs in tourism-related sectors.
Eligibility Criteria	The financing may be used by Malaysian SMEs^1,2 in any tourism-related sectors or activities and/or SMEs that are licensed/registered with MOTAC. Eligible tourism sectors or activities include, but are not limited to, those listed in the National Tourism Policy 2020-2030³: Ecotourism; Ecotourism; Adventure tourism; Youth tourism; Sports tourism; Cultural and heritage tourism; Community-based tourism; Island tourism; Coastal tourism; Urban tourism Shopping tourism; Medical and wellness tourism; Meetings, incentives, conventions and exhibitions (MICE) tourism; Cross-border tourism; Rural/agro tourism; Cruise tourism; Special interest tourism; and Muslim-friendly tourism. The tourism sectors or activities cited above serve as non-exhaustive guidance only and are accurate as of the publication date. However, it is advisable to refer directly to the National Tourism Policy document published by MOTAC for the most current information. Note: ¹At least 51% shares held by Malaysians. ²SMEs refers to micro, small and medium enterprises as defined by the Guideline for SME Definition issued by SME Corporation Malaysia ³As published by Minister of Tourism, Arts and Culture (MOTAC) accessible at: https://motac.gov.my/en/download/category/114-dasar-pelancongan-negara-dpn-2020-2030
Purpose of Financing	Working capital; and/or CAPEX The financing shall NOT be used for the following activities: Refinancing of existing credit/financing facilities; Purchase of shares; Purchase of land/real estate and property for investment (i.e. not for business use or generation of income from tourism activity); Property development (i.e. planning, building and managing real estate with the objective of selling or leasing the developed property) Investment by investment holding companies; Activities where the stock in trade is money (including credit, leasing, factoring and insurance businesses); Gambling, alcohol, tobacco or other similar activities/products; and Non-Shariah compliant activities (applies to Islamic financing only)
Type of Financing	Commodity Murabahah Term Financing-i / Term Loan only
Financing size	Up to RM500,000 per SME, including microenterprises, where: The financing obtained under the Facility is subject to the maximum aggregate amount of financing under BNM’s Fund of RM5mil on for any related SMEs with common shareholder(s), unless the related SMEs have different workforces.
Financing Rate	Up to 3.5% p.a., inclusive of 0.50% p.a. guarantee fee (absorbed by RHB)
Financing Tenure	Up to 7 years
Fees	No Legal Fees
Available of Fund	Until full utilisation

PENJANA Tourism Financing (PTF)

Objective

To help alleviate the short-term cash flow problems faced by SMEs¹ due to COVID‑19 and MCO

Eligibility Criteria

Malaysian SMEs¹ in the core tourism and tourism-related sectors which are either:
- SMEs as defined by SME Corp Malaysia²; OR
- Licensed by/registered with MOTAC.
The eligible sectors are as follows:
- Core tourism:
  - Tourism accommodation premises (e.g. budget hotels, registered homestays, chalet and resorts);
  - Travel agencies & tour operators; and
  - Transportation for tourists (e.g. bus, boat and car rental operators)

Tourism-related sectors:
- Medical tourism;
- MICE (Meetings, Incentives, Conference, Exhibitions) ecosystem;
- Money service businesses³ (MSB);
- Capacity building institutions which are primarily set up to provide tourism related courses/training, and licensed by or registered with MOTAC (e.g. Institut Latihan Pelancongan); and
- Tourism-related retail, recreation and wellness that can justify significant reliance on tourists
- Recipients of Special Relief Facility (SRF) or PENJANA SME Financing (PSF) are eligible to apply.

Type of Financing

Commodity Murabahah Term Financing-i

Financing Size

SME: Up to RM500,000 per SME
Microenterprise: Up to RM75,000 per micro enterprise
Note: A collective financing limit is applicable for SMEs with common shareholder(s) of equal to or more than 20% shareholding.

Financing Rate

3.5% p.a. inclusive of 1% guarantee fee (absorbed by RHB)

Financing Tenure

Maximum 7 years (inclusive of 6 months moratorium on principal and interest/profit; interest/profit is accrued, non-compounded)

Fees

No Legal Fees

Available of Fund

Until full utilisation of Facility

8

BNM’s Fund For SMEs - Micro Enterprises Facility (MEF)

Objective	To increase access to collateral-free financing for registered micro enterprises across all economic sectors, particularly under-served segments at a reasonable cost.
Eligibility Criteria	Micro enterprises Companies registered with Companies Commission of Malaysia (CCM) / have license from Local Authority/ District Offices (for Sabah & Sarawak) or Operation Permit - including sole proprietors/ partnerships/ private limited companies Minimum 3 years in operation Business locally incorporated/registered in Malaysia. Maximum age 70 years old (age limit at maturity date)
Purpose of Financing	Working capital
Tenure	3 – 7 years
Financing size	RM50,000 – RM100,000
Financing Rate	Up to BLR/BFR + 3% p.a.
Facility Type	Term Loan (TL) / Commodity Murabahah Term Financing-i (CMTF-i) only
Collateral	No collateral required

Objective

To increase access to collateral-free financing for registered micro enterprises across all economic sectors, particularly under-served segments at a reasonable cost.

Eligibility Criteria

Micro enterprises
Companies registered with Companies Commission of Malaysia (CCM) / have license from Local Authority/ District Offices (for Sabah & Sarawak) or Operation Permit - including sole proprietors/ partnerships/ private limited companies
Minimum 3 years in operation
Business locally incorporated/registered in Malaysia.
Maximum age 70 years old (age limit at maturity date)

Purpose of financing

Working capital

Tenure

3 – 7 years

Financing size

RM50,000 – RM100,000

Financing rate

Up to BLR/BFR + 3% p.a.

Facility Type

Term Loan (TL) / Commodity Murabahah Term Financing-i (CMTF-i) only

Collateral

No collateral required