By Selangor Journal Team
SHAH ALAM, June 21 – Selangor Advance, a special fund set up by the state administration, has channelled over RM1.1 billion in financing to help local businesses strengthen their cash flow and keep them afloat.
In a statement today, it announced that over 4,600 financial facilities in various forms were approved for small and medium enterprises (SMEs) in 17 different industries from July 1, 2020, to April 30, 2024.
“According to the Selangor Advance monthly report, 4,662 facilities have been approved since the inception of the programme, involving RM1.132 billion in total financing.
“These businesses from across Malaysia have benefited from this programme launched by the Selangor government,” it said.
Selangor Advance has recorded 11,461 transactions since the fund was established, maintaining a 0.16 per cent default rate of all loans, the lowest in the industry.
The financing scheme was launched by the state government in June 2020 to help boost businesses’ cash flow and ensure their continuity post-Covid-19 pandemic, subsequently aiding in the state’s economic growth.
It was given a start-up fund of RM100 million under the Selangor Cares Package 2.0, which was distributed to over 300 SMEs in Selangor then, in the form of initial capital and several other financial facilities.
Initially targeting select government contractors and private companies in Selangor, the programme has since been expanded, with additional funds allocated to also support SMEs nationwide.
Selangor Advance now offers eight shariah-compliant Islamic financing products specifically designed to meet the needs of SMEs based on their project cycle.
These products include letters of support, performance bonds, revolving credit, term loans and invoice factoring, with charges starting at 1 per cent per month of the invoice value.
Eligible SMEs can apply for early payment of up to 85 per cent of the total invoice value, receiving funds within 48 hours post-approval.
The initiative is open to contractors, suppliers and vendors engaged with government entities and listed private companies, provided they are registered with the Companies Commission of Malaysia and operational for at least one year.
Selangor Advance now has over 46 corporate partners, including the Selangor state secretariat, Menteri Besar Selangor (Incorporated), Kumpulan Semesta Sdn Bhd, KDEB Waste Management Sdn Bhd, Pengurusan Air Selangor Sdn Bhd and Worldwide Holding Bhd.
