KUALA LUMPUR: SME Bank will provide a matching grant for small and medium enterprises (SME) to purchase machinery and equipment to enhance automation and reduce reliance on foreign workers.
Prime Minister Tan Sri Muhyiddin Yassin, in announcing the Strategic Programme to Empower the People and Economy (Pemerkasa), said SME Bank will provide loans totalling RM200 million to finance the purchase of machines with grant incentives of up to 20 per cent of the machine value.
He said the government would also increase the allocation of RM50 million for the Smart Automation Grant under the Malaysian Investment Development Authority (Mida), encouraging more SMEs and mid-tier companies to improve operational and manufacturing efficiencies through high technology.
"To support Industrial Revolution 4.0, an allocation of RM50 million will be given to the National Policy on Industry 4.0 (Industry4WRD) programme under the International Trade and Industry Ministry," he said in his special televised speech today.
These initiatives are under Focus Three of Pemerkasa, which targets to strengthen the country's competitiveness.
Muhyiddin said under the Malaysian Industrial Development Finance Bhd (MIDF), a total RM200 million has been provided for automation development, digitalisation and green technology financing schemes.
The MIDF, he added, had agreed to reduce the loan interest rates from five to three per cent for 12 months starting April 1.
To help SMEs get loans, Bank Negara Malaysia (BNM) had increased the Targeted Relief and Recovery Facility by RM2 billion, and the Automisation and Digitalisation Facility by RM700 million.
"With this addition, the facilities provided by BNM for the benefit of SMEs amount to RM6 billion."
Muhyiddin said the targeted moratorium announced by the government last year had lessened the burden of 1.4 million individuals and SME borrowers affected by the pandemic, with an approval rate of up to 95 per cent.
"I would like to stress that this (moratorium) is still open to the public," he added.