CORONAVIRUS | The Association of Banks in Malaysia (ABM) said it was ready to assist eligible small and medium-sized enterprises (SMEs) in need of financing.

In a statement today, ABM said member banks were aware of the importance of business continuity for the SME segment.

The association said Bank Negara's total special funds for SMEs amounted to RM13.1 billion and is available through participating banks.

"As of April 2, financial institutions have approved about 1,300 applications under the three facilities (special relief facility, agrofood facility, automation and digitalisation facility) of Bank Negara's fund for SMEs, totalling RM682 million.

"This is in addition to the other financing provided to SMEs by the banks under their own financing schemes where for the first two months of the year, banks have disbursed RM42 billion of financing to SMEs," said the ABM.

However, the ABM said that banks will take longer to process loan applications because it was being conducted remotely in view of the movement control order (MCO).

The ABM also advised SMEs to contact the Credit Guarantee Corporation Malaysia Bhd (CGC) for various financing initiatives available.

Unsuccessful loan applicants are also advised to seek guidance and assistance from Khidmat Nasihat Pembiayaan (MyKNP) or seek alternative financing solutions from Malaysia Co-Investment Fund scheme (MyCIF).

The SME sector, which employs an estimated 70 percent of the nation's workforce has been hit hard by MCO which has mandated that all non-essential businesses close to slow the spread of the deadly Covid-19 virus.

So far, Putrajaya has offered SMEs a three-month wage subsidy scheme and access to various cheap loans.

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