The government is implementing a joint collaborative private and public program that is aimed to help businesses get back on their feet after enduring one of the worst economic impacts since the Asian Financial Crisis.
Prime Minister Datuk Seri Ismail Sabri Yaakob said SemarakNiaga with an allocation of RM40 billion under Budget 2022, 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.
“This approach 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,” he said in a written interview on the SemarakNiaga Keluarga Malaysia initiative. Ismail Sabri said that through the government’s assistance and support to the business community, more job opportunities will be created as companies recover and grow.
“In fact, we are already building on past achievements,” he said, noting that the Department of Statistics Malaysia and Bank Negara Malaysia had recently announced that the nation’s economy grew by 3.1 percent last year compared to a 5.6 percent contraction in 2020.
Therefore, the government is confident that job creation and business empowerment efforts through Budget 2022 will contribute to this year’s projected Gross Domestic Product growth of 5.5 to 6.5 percent, he added.
Breaking down the allocation, the Prime Minister said it consists of RM1.8 billion in microcredit loans, RM2.2 billion in equity/alternative financing, RM14.2 billion in small and medium enterprise (SME) soft loans, and RM22 billion in guarantees through Syarikat Jaminan Pembiayaan Perniagaan (SJPP).
“All levels of businesses, from micro/small to large and listed on Bursa Malaysia, can benefit from measures in the SemarakNiaga initiative in Budget 2022. In fact, for micro SMEs (MSMEs), the government had never before provided such a sizable RM1.8 billion funding with a moratorium feature of up to 12 months,” he concluded.
