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he pandemic over the last two years has seen a large number of small and struggling enterprises close shop. According to Business Insider, many businesses, about 70%, fail to stand up against the challenges of the market because they didn’t recognise or accept their weaknesses and seek help from others. Some 78% fail because they lack a well-developed business plan including insufficient research on the business. But the biggest reason a business fails, some 82%, is because of cash flow issues. In order to mitigate or avoid pitfalls in businesses, financial relief is paramount. Companies need help in terms of loan relief, tax reductions, grant assistance specially to manage costs for technology enhancements and upgrades. The Malaysian Industrial Development Finance (MIDF) through its SME Revitalisation Financing (SMERF) is offering monetary assistance to SMEs constrained by financial difficulties. The plan has a number of good objectives. The first of this is to provide comprehensive monetary solutions and assist viable SMEs constrained by financial difficulties and underserved sectors. The plan also hopes to ease cashflow blockage faced by viable SMEs in revitalising and achieving business goals, strengthening core business, building capacity and capability, and improving productivity as well as job creation. SMERF also aims to help local and potential SMEs to reach
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a high level of competition through enhancement of product marketability, business expansion and adoption of technology and modernisation. It likewise hopes to facilitate local and potential SMEs to obtain financing with minimum collateral, credit history and track record. Finally, the plan is a fast, flexible and convenient way to finance the need of business from start-up to small and emerging business. Of particularly concern is the underserved sector, namely small businesses, micro-SME and B40 segments. The SMERF plan hopes to help these businesses sustain and continue to strive through enhancement of their products’ marketability, business sustainability as well as adoption of technology and modernisation.
A QUICK TAKE ON SMEFR SMERF is a financial assistance scheme introduced to facilitate viable small and medium enterprise, including microenterprises that are adversely affected by the COVID-19 pandemic to have access to financing to start, restart and continue their business. The Scheme will be prioritised to assist first-time borrowers, new businesses and business in specific sectors that were unable to secure
Market Info
Financial Relief from MIDF
commercial loans due to certain restrictions and limits. Eligible SMEs will be able to obtain financing at a minimum amount of RM50,000 and up to RM250,000. Fixed financing rate of as low as 3% per annum on reducing balance.
WHO IS ELIGIBLE FOR SMEFR? SMEs must meet the following eligibility criteria: Registered with Companies Commission of Malaysia (SSM), or authorities/district officers (for Sabah and Sarawak), or statutory bodies for professional service providers; and at least 60% of equity is held by Malaysians. If you are keen to explore the SMERF and MIDF’s Soft Financing Scheme for Digital and Technology (SFDT) or wish to grow your businesses further with financing from MIDF, please email to GrowYourBusiness@midf.com.my or speak to their Business Advisory Consultant at 1-300-88-6433. Malaysia Retailer Vol 9 No 4
