KUALA LUMPUR: The allocation for the national supply chain finance platform, JanaNiaga, is expected to reach RM1.2 billion, with the additional funding from financial institutions participating in phases.

Finance Minister Datuk Seri Tengku Zafrul Abdul Aziz said that to ensure that financial assistance could be extended to SMEs immediately, an allocation of RM 300 million was provided by Export-Import Bank of Malaysia Bhd ( EXIM Bank) to launch JanaNiaga.

He said JanaNiaga, run by EXIM Bank with the participation of several financial institutions in Malaysia, would benefit SMEs that experience cash flow problems after a longer bill payment period, in addition to making it easier for them to obtain loans.

“The JanaNiaga platform is based on paying invoices from GLC suppliers (government related companies) through the digital portal.

“With the support of GLCs, SME suppliers will benefit from a financing rate as low as 3.5% per annum with a financing margin of 100%, well below the normal financing rate,” he said. stated in his speech at the launch of the JanaNiaga platform today.

Tengku Zafrul said that at the initial stage, JanaNiaga will be implemented with Petronas and Telekom Malaysia Bhd.

Based on an average 90-day bill, the allocation of RM 1.2 billion would contribute RM 4.8 billion per year to SMEs’ cash flow liquidity, he said.

Tengku Zafrul said funding requests must be made online, which would allow them to be approved within 24 hours.

JanaNiaga, which was announced in Budget 2021, is the Funding Assistance Initiative to help strengthen the financial position of SMEs that supply government or GLCs, he said.

“This platform will support long-term economic recovery, in line with the government’s strategy of prioritizing automation and digitization, as well as using new technologies to accelerate the transformation to an income economy. high, ”Tengku Zafrul said. – Bernama