The Edge Markets
June 30, 2020 17:42 pm +08
KUALA LUMPUR (June 30): SME Bank is allocating up to RM2.1 billion for the SME Go scheme and the SME Technology Transformation Fund (STTF).
The allocation follows the mandate given by Prime Minister Tan Sri Muhyiddin Yassin to revitalise economic activities of small and medium enterprises (SMEs) during the announcement of the National Economic Recovery Plan (Penjana) on June 5, 2020, the bank said in a statement today.
Of the total fund, RM1.6 billion will be allocated to the SME Go scheme, with the remaining RM500 million for the STTF.
Entrepreneur Development and Cooperatives Minister Datuk Seri Dr Wan Junaidi Tuanku Jaafar said the RM2.1 billion allocation provided by SME Bank is expected to rejuvenate economic activities in the construction sector, targeting G2 and G3 contractors.
The fund is also aimed at boosting technology adoption by SMEs under the Fourth Industry Revolution (IR 4.0) to enable them to face the new normal, he added.
SME Bank group president/chief executive officer (CEO) Aria Putera Ismail said SME Bank’s two-year acceleration programme for digital transformation in 2019 had well positioned the bank to implement its mandated roles as well as helping the government execute key initiatives to help SMEs sustain themselves during the Covid-19 pandemic.
The SME Go scheme is for working capital financing for the pre-implementation stage of construction or supply or maintenance contracts awarded by the federal or state governments, ministries, departments or agencies.
On the other hand, the STTF is for the purchase of equipment, machinery, computer hardware and software, information technology solutions and services, technology support services and other intangible assets to enhance productivity and efficiency as well as boost market penetration.