The Ministry of Finance (MoF) has reiterated the increase in funding for the Disaster Relief Facility (DRF) 2022 by Bank Negara Malaysia to RM500 million, from RM200 million.
The financing facilities will be provided through commercial banks for micro, small and medium enterprises (MSMEs) to finance the replacement of equipment damaged by floods, as well as for working capital.
“Financing up to RM500,000 will be provided for SMEs, while micro-entrepreneurs can borrow up to RM75,000. The financing period is up to five years, including a moratorium on repayment for six months,” Finance Minister Tengku Datuk Seri Zafrul Abdul Aziz said in a statement on Sunday (Dec 26).
The financing rate is up to 3.5% per annum, including guarantee costs. Applications can be made through commercial banks from Dec 27, 2021.
The government will continue to monitor the situation and the MoF, in particular, will always be ready to provide adequate allocations to assist flood victims as soon as possible.
The increase in the DRF funding was announced by Prime Minister Datuk Seri Ismail Sabri Yaakob on Dec 22, 2021, as an aid initiative to ease the burden of flood victims.
Source: Bernama