SHAH ALAM, June 22 — The registration for the Selangor Advance financing scheme, which was introduced to help small-medium contractors and service providers increase their cash flow, will begin from July 1, says Dato’ Seri Amirudin Shari.
In a statement today, the Menteri Besar said the initiative is formulated based on a shariah-compliant financing concept.
He said it will first be introduced to those providing services to the state government or government-linked companies before it is extended to businesses that are dealing with local authorities.
“Through this initiative, the payment for the work done would be expedited to the contractors and service providers.
“This would help business owners to have sufficient funds to ensure business continuity,” he said in the statement.
Amirudin said the Selangor government had allocated a start-up fund of RM100 million for the financing initiative under the state’s economic stimulus package, the Selangor Cares Package 2.0, which was announced on April 1.
Following the economic impact caused by the Covid-19 pandemic, Amirudin said small-medium enterprises (SMEs) and contractors have faced financial and operational challenges, which had also forced some companies to reduce their workforce.
“SMEs are a major contributor to the country’s gross domestic product (GDP) and the state government is aware of the cash flow problems faced by these groups in order to sustain their operations.
“We hope that the initiative would enable businesses to continue to thrive in the current economic landscape,” he said.
For further information on Selangor Advance, visit www.selangoradvance.com.my or contact via 018-282 8502 or email at [email protected].
