Kuala lumpur: Small Medium Enterprise Development Bank Malaysia Berhad (SME Bank) is mobilising flood relief assistance to support entrepreneurs and businesses affected by the recent floods in several states. SME Bank acting president and chief executive officer Samad Majid Zain Abdul Majid explained that the initiative highlights the bank's commitment to strengthening the resilience of micro, small, and medium enterprises (MSMEs) during operational disruptions caused by natural disasters.

According to BERNAMA News Agency, Samad Majid Zain emphasized the bank's role as a Development Financial Institution (DFI) that extends beyond providing financing, to delivering necessary support to entrepreneurs in times of need. The initiative aims to ease the burden on affected entrepreneurs, support their recovery, and enhance their resilience against future climate-related risks.

Samad Majid Zain noted that over the past five years, SME Bank's flood assistance initiatives have supported nearly 500 customers, with a total outstanding value of RM550 million. This assistance signifies SME Bank's long-term commitment to standing by entrepreneurs during times of crisis.

Additionally, SME Bank offers support through the Relief and Adaptation Facility (RAFt), established by Bank Negara Malaysia (BNM), to strengthen flood preparedness and ensure business continuity for MSMEs. RAFt provides two forms of targeted assistance: relief financing, offering up to RM1 million at a profit rate of 3.50 per cent per annum to ease immediate cash flow constraints, and adaptation financing, offering up to RM1 million at a profit rate of three per cent per annum to strengthen long-term resilience against flood risks, with a maximum financing tenure of seven years.

SME Bank encourages entrepreneurs affected by the floods to contact their respective relationship managers for assistance.