KUALA LUMPUR, June 5 — The government said today it is allocating another RM2 billion to help small medium enterprises (SMEs) adversely impacted by Covid-19 to overcome the current economic slowdown.

In his address today, Prime Minister Tan Sri Muhyiddin Yassin said that SMEs in targeted sectors will be given a lifeline by banks who are offering funds of RM2 billion through its a financing scheme under the economic recovery plan dubbed Penjana.

“To sustain business operations, the banking sector will offer an additional RM2 billion of funding to assist SMEs.

“Application for this financing begins in mid-June and is limited to a maximum of RM500,000 for each SME,” he said.

“SMEs will also get cashflow aid as of July through SME Bank’s SME-GO scheme which will allow some 16,000 G2 and G3 grade contractors who have projects under the PRIHATIN stimulus package,” he said.

The bank will provide financing support to contractors and vendors who are awarded small government projects (with an aggregate value of RM 4 billion) under previous stimulus packages.

SME Bank shall pay directly to the contractors and vendors based on the presentation of invoices and claims, No deposit or collateral will be required.

To help establish and encourage new SMEs, an income tax rebate of up to RM20,000 each year for three years will be put in place. This is for new companies starting up between July 1, 2020 and December 31, 2021.