PUTRAJAYA: Improvements have been made to post-flood financial aid initiatives, including a 12-month moratorium on certain loans to ease the burden faced by the affected micro, small and medium enterprises, says Datuk Seri Ismail Sabri Yaakob.

       The Prime Minister said the government wants to provide comprehensive financial aid so that businesses could restart and see a speedy recovery.

       He illustrated initiatives whereby borrowers who take a RM10,000 loan from the informal and micro-financial scheme (SPIM) under Tekun Nasional, have a time span of five years to not only service the loans but qualify for a 12-month moratorium too.

       “For those who apply for loans under the SME Emergency Fund programme, an interest-free loan of up to RM100,000 is available.

       “Borrowers will also be given five years to service their loans and a 12-month moratorium,” he said in a statement yesterday.

       This announcement comes two weeks after the Economic Action Council chaired by the Prime Minister met to discuss how these businesses, which suffered damage from the floods, could be assisted.

       Over and above that, RM50mil will be provided under SPIM while RM100mil will be injected into the SME emergency fund to allow more businesses the opportunity to take up the financial aid.

       Through Tekun Nasional, a grant of RM3,000 will be offered to micro and informal businesses affected by the floods.

       This initiative is expected to benefit 15,000 such businesses.

       As for the agriculture sector where losses were estimated at RM91mil, Ismail Sabri said an additional fund of RM20mil will be injected into agrofood enterprises affected by the floods.

       This is on top of the RM21mil that has already been channelled through the padi planting disaster fund.

       Under this programme, farmers whose padi farms were damaged due to floods will receive cash aid of RM1,800 per hectare for a maximum of three hectares.

       “For other agriculture farmers, an additional RM50mil will be provided under the agrofood redevelopment programme,” Ismail Sabri said.

       Farmers, breeders and planters can apply for aid up to 50% of their losses through this programme.

       “The government remains committed in its efforts to ease the burden of all sections of society who were affected by the floods by providing appropriate financial aid,” he said.