Bank Negara: 9,000 SMES benefited from RM2b SME scheme

KUALA LUMPUR: Bank Negara Malaysia said on Thursday, Dec 31 the RM2 billion SME Assistance Guarantee Scheme, launched on Feb 3, has assisted more than 9,000 SMEs from all sectors of the economy.

Under this scheme, participating financial institutions approved RM1.85 billion in financing. It added 78% of the successful applicants comprised of micro to small enterprises, while 22% comprised of medium enterprises.

"Effective Dec 31, 2009, the participating financial institutions will no longer receive new applications. Participating financial institutions will continue to assess the remaining applications that have been received by the closing date," it said.

The scheme was set up to ensure viable SMEs, adversely affected by the economic slowdown, would continue to have access to adequate financing. With continued access to financing during the difficult period, these SMEs were able to sustain their business operations and preserve employment.

The central bank said as the domestic economic conditions show further improvement and with available ample liquidity, latest indicators have shown an upward trend of business loan applications and approvals in the banking system.

"For November, business loan applications and approvals rose by 33.5% and 45.3% respectively compared with the same month last year. Viable businesses from all sectors continue to have access to financing that will support domestic economic activity," it said.