JanaNiaga financing allocation expected to reach RM1.2 bln Tengku Zafrul
0 month ago, 22-Jul-2021
Tengku Datuk Seri Zafrul Abdul Aziz
KUALA LUMPUR (July 22): The allocation for the National Supply Chain Finance Platform,JanaNiaga, is expected to reach RM1.2 billion, with the additional allocation from financial institutions which will participate in phases.
Finance Minister Datuk Seri Tengku Zafrul Abdul Aziz said to ensure the financing assistance could be extendedto the SMEs immediately, an allocation of RM300 million has been provided by Export-Import Bank of Malaysia Bhd (EXIM Bank) to kick-start JanaNiaga.
He said JanaNiaga, led byEXIM Bankwith the participation of several financial institutions in Malaysia, wouldbenefit theSMEs that are experiencing cash flow problems followinga longer invoice payment period, besides facilitating them inobtaining loans.
The JanaNiaga platform is based on invoice payment from suppliers of GLCs (government-linked companies) through thedigital portal.
“With the support of GLCs, SME suppliers will enjoy financing rate as low as 3.5 per cent annually with 100 per cent financing margin, far lower than normal financing rate,” he said in his speech at the launch of the JanaNiaga platfrom today.
Tengku Zafrul said at the initial stage, JanaNiaga will beimplemented together with Petronasand Telekom Malaysia Bhd.
Based on the average invoice of90 days, the allocation ofRM1.2 billion would contribute some RM4.8 billion per year to the cash liquidity of the SMEs, he said.
Tengku Zafrul said the financing applications, whicharealso required to bemade online, wouldenable the applications to be approved within 24 hours.
JanaNiaga platform announced in Budget 2021 is the financingassistance initiative to help strengthen the financial position of the SMEs which supplies to the government or GLCs, he said.
“This platform will support the economic recovery for the long term, in line with the government’s strategy in prioritising automation and digitalisation, as well as using new technologies to expedite the transformation to a high-income economy,” he added. – Bernama