Targeted assistance ready for businesses hit by Middle East crisis, says BNM

“KUALA LUMPUR, May 8 — Help is readily available for businesses affected by the conflict in West Asia, especially small and medium enterprises (SMEs), said Bank Negara Malaysia (BNM) Governor Datuk Seri Abdul Rasheed Ghaffour. He said the current challenges differ significantly from the Covid-19 crisis, when nearly all sectors of the economy were severely impacted. “This is not like Covid, where there was a nationwide lockdown that affected everyone. The impact this time is more concentrated on certain sectors, especially those that rely heavily on oil, crude-based products and diesel,” he told Bernama in an interview. Among the measures available are special funds aimed at helping to provide working capital for businesses facing disruptions to operations and cash flow challenges. Loan repayment assistance such as restructuring and rescheduling options are also available for affected borrowers. Abdul Rasheed also said businesses experiencing repayment difficulties are encouraged to engage their banks early to explore available relief options, including to pause instalments temporarily and revise repayment schedules. In April, BNM introduced the SME Stabilisation Relief Facility (SME SRF), a RM5 billion financing initiative aimed at assisting micro, small and medium enterprises (MSMEs) impacted by the ongoing West Asia conflict. The facility is intended to complement ongoing assistance provided by the banking industry, as MSMEs continue to navigate heightened global uncertainties. Applications for the SME SRF will open on May 15, 2026, through participating banks. MSMEs can refer to BNM’s website for a list of participating financial institutions or contact their respective banks directly. The Association of Banks in Malaysia (ABM), the Association of Islamic Banking and Financial Institutions Malaysia (AIBIM), and the Association of Development Finance Institutions of Malaysia (ADFIM) have welcomed the move. The banking industry has also reaffirmed its commitment to supporting customers and ensuring that viable businesses maintain access to financing and assistance. In addition, efforts are underway to engage customers and raise awareness of available support measures proactively. In a statement issued in April, the associations urged MSMEs affected by the conflict to engage with their banks early to explore suitable solutions. These include repayment assistance, restructuring options, and working capital support. — Bernama

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