AXIATA Group Bhd, together with its subsidiaries Celcom Axiata Bhd (Celcom), edotco Group and Axiata Digital announced today the launch of a RM150 mil cash fund to provide financial assistance to micro-SMEs.
Axiata’s Covid -19 Assistance Programme includes an initial contribution of RM20 mil from the Ministry of Finance. The programme is an urgent intervention by Axiata to give immediate assistance to micro-SMEs facing financial difficulties arising from the unprecedented pandemic and the subsequent Movement Control Order (MCO) issued by the government which saw the closure of all non-essential businesses.
“Under the current challenging conditions, micro-SMEs, which easily make up more than 50% of SMEs in Malaysia and fall mostly within the B40 segment of society, will face mounting difficulties in operating their businesses,” said Axiata in a statement.
Micro-SMEs tend to have minimal savings and cash flow to buffer against unpredictable events and will not have sufficient funds to sustain daily needs.
Axiata will offer shariah-compliant micro-financing through its subsidiary Axiata Digital, riding on the latter’s Aspirasi digital platform, in the range of RM1,000 to RM10,000 and on favourable terms. This is targeted to benefit an estimated 150,000 micro-SMEs within Boost, Aspirasi and the Celcom ecosystem, as well as within other ecosystem, including its e-commerce and FMCG partners and potentially other telcos and e-wallets.
Interest and payment terms include suspended repayment requirements and concessional interest rates. In addition, the programme will also bundle micro-insurance coverage under Aspirasi to provide micro-SME proprietors and merchants with emergency income, accidental death benefits and Covid -19 assistance.
By leveraging Aspirasi’s advanced digital technology, micro-SMEs will only be required to undergo a quick three-minute online process and if approved, funding will be made available in 48 hours in their bank accounts.
This allows for ease of application during the MCO period and for funds to be quickly and efficiently disbursed to businesses in need, with minimal or no human intervention.
Malaysia and Indonesia Axiata president and group CEO Tan Sri Jamaludin Ibrahim said: “We are living in an unprecedented time where many of us are grappling with the rapidly evolving global crisis. None of us has ever experienced something like this in our lifetime!
“As our government and institutions battle on the hour to mitigate the spread of the coronavirus within our communities, corporate Malaysia is also rising to the fore to leverage on our resources and capabilities to alleviate the impact on businesses and communities. We have a very tight window to cast a lifeline to quickly get them back on their feet in order to weather and recover from the pandemic.” — March 25, 2020
