KUALA LUMPUR, Oct 11  -- The government will be enhancing the Business Loan Guarantee Scheme (SJPP) to better facilitate Small and Medium Enterprises’ (SMEs) access to financing in priority segments.

Finance Minister Lim Guan Eng said for Bumiputera SMEs, export-oriented SMEs and SMEs investing in automation and digitalisation, the government guarantee will be increased from 70 to 80 per cent, while the guarantee fee will be reduced to only 0.75 per cent.

“A new SJPP allocation of RM500 million in guarantee facility will also be launched for women entrepreneurs,” he said when tabling the 2020 Budget at Parliament today.

To further support up-and-coming entrepreneurs, Lim said SME Bank will introduce a RM200 million fund for women entrepreneurs, offering loans of up to RM1 million per SME, as well as a RM300 million fund for Bumiputera SMEs which have the potential to become regional champions.

He said the Bumiputera SMEs fund will be prioritising producers of halal products and manufacturers with high local content, adding that the government will provide an annual interest subsidy of 2.0 per cent to reduce borrowing cost for both funds.

-- BERNAMA