ANNOUNCEMENT

Financing Facility to assist Malaysian SMEs

1

Low Carbon Transition Facility (LCTF)

Objective

To encourage and catalyse SMEs to transition to low carbon operations by adopting sustainability practices for business resilience

Eligibility criteria

SMEs1 in all sectors pursuing efforts to transform their operations into more sustainable and low carbon business practices

Purpose of financing 

To fund capital expenditure2 or working capital to initiate or facilitate the transition to low carbon and sustainable operation

Tenure 

Up to 10 years 

Financing size per SME

Up to RM10 million

Financing rate to SMEs 

The maximum effective financing rate is up to 5.0% per annum, inclusive of guarantee fee (if any)

Guarantee coverage

80% of financing amount by Syarikat Jaminan Pembiayaan Perniagaan (SJPP), no other collaterals required

Type of facility

Term Loan / Commodity Murabahah Term Financing-i

Availability

Until full utilisation of the Facility

¹At least 51% of shares are held by Malaysians and as defined by SME Corp. Malaysia’s Guideline for SME Definition, accessible at www.smecorp.gov.my/images/pdf/2021/Guideline_on_SMEDefinition_Updated_Sept2020_Final.pdf
²Excluding the purchase of land. Purchase of non-residential building for business use is allowed subject to the same requirements and safeguards under BRF
Note: All applications are subjected to the Bank’s final decision.
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2

Business Recapitalisation Facility (BRF)

Objective

Improve the capital structure of SMEs particularly those who wish to undertake capital expenditure so that the SME should have a more manageable debt-to-equity (D/E) after tapping BRF

Eligibility criteria

SMEs1 from all sectors provided they do not have any impaired loans/financing as at 31 December 20192

Purpose of financing 

Working capital and/or capital expenditure including purchase of non-residential building for business use3

Tenure 

Up to 10 years 

Financing size per SME

  • Up to RM5 million
  • The maximum aggregate financing amount of RM5 million per SME under the BNM’s Fund for SMEs does not apply to the BRF

Financing rate to SMEs

The effective financing rate is up to 5% per annum inclusive guarantee fee

Guarantee coverage

Guarantee coverage can be provided from Credit Guarantee Corporation Malaysia Berhad (CGC) / Syarikat Jaminan Pembiayaan Perniagaan (SJPP) once available

Type of facility 

Term Loan / Commodity Murabahah Term Financing-i

Availability

Until full utilisation of the Facility

¹At least 51% of shares are held by Malaysians and as defined by SME Corp. Malaysia’s Guideline for SME Definition, accessible at www.smecorp.gov.my/images/pdf/2021/Guideline_on_SMEDefinition_Updated_Sept2020_Final.pdf
²The objective is to avoid financing going towards supporting ‘zombie’ firms
³Excluding the purchase of land. PFIs are obliged to conduct due diligence and put safeguards in ensuring the property purchased by clients is for business use rather than for investment or rental
Note: All applications are subjected to the Bank’s final decision.
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Submit Details Here
3

Disaster Relief Facility (DRF) 2022

Objective

To alleviate the financial burden of Malaysian SMEs (MSMEs) affected by floods and enable them to resume their business operations

Eligibility Criteria

SMEs¹ and micro enterprises affected by floods located in districts identified by Agensi Pengurusan Bencana Negara as flood disaster areas.

Purpose of Financing

  • Repairs and/or replacement of assets for business use (e.g. plants and machinery) which have been damaged by floods; and/or
  • Working capital

Note: Financing should not be used for refinancing of existing credit/financing facilities

Type of Financing

Applicable for Term Loan / Commodity Murabahah Term Financing-i ONLY.

Financing Size

  • Up to RM RM700,000 per SME
  • Up to RMRM150,000 per micro enterprise

Note: A collective financing limit is applicable for SMEs with common shareholder(s) of equal to or more than 20% shareholding

Financing Rate

3.50% p.a. inclusive of 0.5% guarantee fee (absorbed by RHB)

Financing Tenure

Maximum 7 years inclusive 6 months moratorium on principal & interest/profit; interest/profit is accrued, non-compounded)

Guarantee Cover

80% of financing amount by Credit Guarantee Corporation Malaysia Berhad (CGC), no other collateral required.

Available of Fund

Until full utilisation or subject to further decision by BNM

¹At least 51% shares held by Malaysians and as defined by SME Corp. Malaysia’s Guideline for SME Definition, accessible at https://www.smecorp.gov.my/images/pdf/2021/Guideline_on_SMEDefinition_Updated_Sept2020_Final.pdf
Note: All application is subject to Bank’s final decision
Drop us your details below
and we’ll be in touch!
Submit Details Here
4

High Tech & Green Facility (HTG)

Objective

Designed to help SMEs and innovative start-ups to grow their businesses and invest in strategic sectors and technologies fields (digital tech, green tech and biotech) for a sustainable and entrenched economic recovery.

Eligibility Criteria

  • Malaysian SMEs¹ involved in the following sectors:
  Manufacturing
  • Electrical and Electronics (E&E)
  • Chemicals
  • Refined petroleum
  • Machinery & Equipment (M&E)
  • Medical devices and pharmaceuticals
  • Automotive and transport equipment (including aerospace; vehicle and parts manufacturers)
  Services
  • Information and Communication Technology (ICT)
  • Research and Development
 

(Sectors identified to be most aligned to the long-term strategic development goals for Malaysia under the National Investment Aspirations (NIAs))

 OR


  • Businesses (including commercially ready start-ups) involved in providing technology solutions
    (Non-exhaustive list and PFIs are allowed to propose relevant technologies under the three key segments – Green technology, Digital and 4IR technology and Biotechnology)

 

 Green Technology
  • Renewable energy & energy efficiency
  • Transportation - Clean transportation, electric vehicle, battery development
  • Natural resources
    • Sustainable water and waste management
    • Aquatic conservation and pollution prevention
  • Circular economy
    • Reusing, recycling and remanufacturing
    • Repurposing of stranded assets
  • Agritech
    • Precision and automated farming
    • Vertical farming
    • Farming using drones, IoT and big data analytics
  • Low carbon technologies
    • Low carbon-emitting technologies (Carbon, capture, utilisation and storage (CCUS), low carbon hydrogen)
  Digital and 4IR technology
  • Smart manufacturing (IoT solutions)
  • Artificial Intelligence (AI)
  • Big data analytics
  • Virtual/ Augmented reality
  • Robotics
  • Drone technologies
  • Connectivity and distributed infrastructure (5G, blockchain, cloud computing)
  • 3D printing
  • Software development (digital healthcare technology, e-commerce, fintech and payment platform, gaming mobility solutions)
  Biotechnology
  • Neurotechnology
  • Biohealth (genetics)
  • Biosciences (crop and yield improvement)

OR
  • SMEs and start-ups involved in the listed Government programmes
  • All eligible programmes will be updated periodically at: www.bnm.gov.my/covid19
  • Recipients of Special Relief Facility (SRF), PENJANA SME Financing (PSF) and/or PENJANA Tourism Financing (PTF) are eligible for the HTF-NIA, for the purpose of financing capital expenditure only.

 

Type of Financing

Commodity Murabahah Term Financing-i (CMTF-i) / Term Loan (TL)

Financing Size

Up to RM10 million

Financing Rate

Up to 3.5% p.a., for financing without guarantee; or
Up to 5.0%p.a., inclusive of guarantee fee.

Financing Tenure

Up to 10 years

Guarantee Cover

Up to 80% of financing amount by Syarikat Jaminan Pembiayaan Perniagaan (SJPP) / Credit Guarantee Corporation Malaysia Berhad (CGC) , no other collaterals required.

Available of Fund

Until 31 December 2023


¹At least 51% shares held by Malaysians and as defined by SME Corp. Malaysia’s Guideline for SME Definition, accessible at https://www.smecorp.gov.my/images/pdf/2021/Guideline_on_SMEDefinition_Updated_Sept2020_Final.pdf
Note: All applications are subjected to the Bank’s final decision.

Drop us your details below
and we’ll be in touch!
Submit Details Here
5

PENJANA Tourism Financing (PTF)

RHB is a participating bank for PENJANA Tourism Financing with a total allocation of up to RM50 million.

 

 PENJANA Tourism Financing (PTF)

Objective

 To support SMEs in the tourism sectors by preserving their capacity and assisting them to undertake the necessary investments to adjust and remain viable post-COVID-19

Eligibility Criteria
  • Malaysian SMEs¹ in the core tourism and tourism-related sectors which are either:
    • SMEs as defined by SME Corp Malaysia²; OR
    • Licensed by/registered with MOTAC.
  • The eligible sectors are as follows:
    • Core tourism:
      • Tourism accommodation premises (e.g. budget hotels, registered homestays, chalet and resorts);
      • Travel agencies & tour operators; and
      • Transportation for tourists (e.g. bus, boat and car rental operators)
    • Tourism-related sectors:
      • Medical tourism;
      • MICE (Meetings, Incentives, Conference, Exhibitions) ecosystem;
      • Money service businesses³ (MSB);
      • Capacity building institutions which are primarily set up to provide tourism related courses/training, and licensed by or registered with MOTAC (e.g. Institut Latihan Pelancongan); and
      • Tourism-related retail, recreation and wellness that can justify significant reliance on tourists
    • Recipients of Special Relief Facility (SRF) or PENJANA SME Financing (PSF) are eligible to apply.

Purpose of Financing
  • Working capital; and/or
  • Capital expenditure; and/or
  • Refinancing of up to 50% of total financing approved

    Note: 50% of financing approved can be used to refinance existing business financing (existing business financing excludes financing obtained under BNM’s Fund for SMEs)

Type of Financing

 Commodity Murabahah Term Financing-i / Term Loan only

Financing size
  • SME: Up to RM500,000 per SME
  • Microenterprise: Up to RM75,000 per micro enterprise
  • Note: A collective financing limit is applicable for SMEs with common shareholder(s) of equal to or more than 20% shareholding.

Financing Rate

 3.5% p.a. inclusive of 0.5% guarantee fee (absorbed by RHB)

Financing Tenure

 Maximum 7 years (inclusive of 6 months moratorium on principal and interest/profit; interest/profit is accrued, non-compounded)

Fees

 No Legal Fees

Available of Fund

 Until full utilisation of the Facility

PENJANA Tourism Financing (PTF)

Objective
To help alleviate the short-term cash flow problems faced by SMEs1 due to COVID‑19 and MCO

Eligibility Criteria
  • Malaysian SMEs¹ in the core tourism and tourism-related sectors which are either:
    • SMEs as defined by SME Corp Malaysia²; OR
    • Licensed by/registered with MOTAC.
  • The eligible sectors are as follows:
    • Core tourism:
      • Tourism accommodation premises (e.g. budget hotels, registered homestays, chalet and resorts);
      • Travel agencies & tour operators; and
      • Transportation for tourists (e.g. bus, boat and car rental operators)
    • Tourism-related sectors:
      • Medical tourism;
      • MICE (Meetings, Incentives, Conference, Exhibitions) ecosystem;
      • Money service businesses³ (MSB);
      • Capacity building institutions which are primarily set up to provide tourism related courses/training, and licensed by or registered with MOTAC (e.g. Institut Latihan Pelancongan); and
      • Tourism-related retail, recreation and wellness that can justify significant reliance on tourists
      • Recipients of Special Relief Facility (SRF) or PENJANA SME Financing (PSF) are eligible to apply.

Type of Financing
Commodity Murabahah Term Financing-i

Financing Size

  • SME: Up to RM500,000 per SME
  • Microenterprise: Up to RM75,000 per micro enterprise
  • Note: A collective financing limit is applicable for SMEs with common shareholder(s) of equal to or more than 20% shareholding.

Financing Rate
3.5% p.a. inclusive of 1% guarantee fee (absorbed by RHB)

Financing Tenure
Maximum 7 years (inclusive of 6 months moratorium on principal and interest/profit; interest/profit is accrued, non-compounded)

Fees
No Legal Fees

Available of Fund
Until full utilisation of Facility
¹At least 51% shares held by Malaysians
²As defined by SME Corp. Malaysia’s Guideline for SME Definition, accessible at https://www.smecorp.gov.my/images/pdf/2021/Guideline_on_SMEDefinition_Updated_Sept2020_Final.pdf
³Applicable for money changing operators only
Note: All applications are subjected to the Bank’s final decision.
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