The Skim Jaminan Pinjaman Perniagaan (SJPP) will be enhanced to better facilitate access to financing for small and medium enterprises (SMEs). Finance Minister Lim Guan Eng said the government guarantee will be increased from 70 per cent to 80 per cent for Bumiputera SMEs, export-oriented SMEs, and SMEs investing in automation and digitalisation. “In addition, the government will reduce the guarantee fee to only 0.75 per cent.
“A new SJPP allocation of RM500 million in guarantee facility will also be launched, earmarked for women entrepreneurs,” he said when tabling the 2020 Budget in Parliament, today. Lim said SME Bank would introduce two new funds to further support up-and-coming entrepreneurs. “The government will provide an annual interest subsidy of 2 per cent to reduce borrowing costs as follows.
“First, a RM200 million fund specifically for women entrepreneurs, offering loans of up to RM1 million per SME. “Second, a RM300 million fund to support Bumiputera SMEs with the potential to become regional champions, with priority given to producers of halal products and manufacturers with high local content,” he added.
He said the government would allocate RM10 million to the Entrepreneur Development Ministry to focus on advocacy and awareness for halal certification and halal product development.