SME Bank activates flood-relief support for MSMEs nationwide

KUALA LUMPUR: Small Medium Enterprise Development Bank Malaysia Bhd (SME Bank) has activated its flood-relief support to assist entrepreneurs and businesses affected by the recent floods nationwide.

In a statement, SME Bank said the initiative reflects its continued commitment to safeguarding the resilience of MSMEs, particularly during periods of operational disruption caused by natural disasters.

“As a development financial institution, our role extends beyond financing to providing the right support at the right time. This initiative is a proactive measure to ease the hardship faced by affected customers and help them recover swiftly while strengthening their resilience against future climate-related disruptions,” relief president/chief executive officer Samad Majid Zain said.

“Over the past five years, our flood-relief assistance initiatives have supported close to 500 customers with a total outstanding value of RM550mil, reflecting our long-standing commitment to stand with our customers in times of crisis,” he added.

SME Bank is offering support through the Relief and Adaptation Facility (RAFt), a Bank Negara fund aimed at strengthening MSMEs’ flood preparedness and business continuity.

RAFt provides two targeted options: Relief Financing, which eases immediate cash flow needs for flood-affected MSMEs with financing of up to RM1mil at a 3.50% profit rate per annum; and Adaptation Financing, which supports long-term resilience with up to RM1mil at a 3% profit rate per annum and financing tenures of up to seven years.