What is BNM’s SME Automation and Digitalisation Facility (ADF)?

Bank Negara Malaysia announced that it is allocating an additional RM700 million for the SME Automation and Digitalisation Facility (ADF). The facility's total size is now RM1 billion.

Established in March 2020, the ADF aims to encourage SMEs in all sectors to digitalise operations and automate processes to increase efficiency and productivity. 

Open to all Malaysian SMEs, the ADF has a maximum financing amount of RM3 million maximum for each SME and maximum financing tenure of 10 years. The financing rate is up to 4 per cent per annum, including the guarantee fee.

SME Automation and Digitalisation Facility (ADF)

ADF is a financing facility created by BNM to encourage SMEs to automate processes and digitalise operations to increase productivity and efficiency.

Projects and activities eligible for financing under the ADF

SMEs can use ADF to finance the purchase of the items below to enhance their productivity and efficiency:

• Equipment, 

• Machinery, 

• ICT solutions and services,

• ICT hardware and software, 

• Technology support services and other intangible assets.

*The APF does not cover the refinancing of existing financing facilities.

Maximum financing amount and tenure

Maximum of RM3 million per SME, with financing tenure of 10 years maximum.

The financing rate is 4% per annum (maximum), including any guarantee fee. Syarikat Jaminan Pembiayaan Perniagaan (SJPP) will provide guarantee coverage.

Participating financial institutions

• BNM-regulated development financial institutions,

• Commercial banks, and

• Islamic banks.

Interested SMEs have until 31 December 2021 to apply.

Eligibility requirements

• The SME is registered with the Companies Commission of Malaysia (SSM), local authorities in Sabah and Sarawak, or statutory bodies for professional service providers. 

• Shareholding by Public Listed Companies & Government Linked Companies (if any) in the SME does not exceed 20%.

• The applicant is a Malaysian residing in Malaysia that holds a minimum of 51% shareholding in the SME.

Verifying eligibility

SMEs should contact the participating financial institutions to determine their eligibility under the ADF. All applications for the facility's financing will be subject to assessments by the participating financial institutions.

How to sign up for ADF

SMEs interested in applying for ADF can contact the participating financial institutions' customer service centre or log on to their websites. 

Closing date

BNM will provide the APF until 31 December 2021 or full utilisation, whichever is earlier. 

Other facilities for SMEs ineligible for the ADF

SMEs that do not qualify for the ADF can apply for other BNM facilities, such as:

• All Economic Sector Facility, 

• Agrofood Facility,

• Micro-Enterprise Facility, 

• PENJANA Tourism Financing, 

• Targeted Relief and Recovery Facility (TRRF), and

• High-Tech Facility – National Investment Aspirations (HTF-NIA)

For more info, please refer to https://www.bnm.gov.my/covid19.

What to do if the ADF application is rejected?

If the SME's application is rejected, take the following steps: 

1. Get clarification from the participating financial institutions on the reason(s) of rejection; 

2. Re-submit the application through the ImSME platform if the SME has not done so before; 

3. Acquire financing advisory services through Khidmat Nasihat Pembiayaan (MyKNP) that gives advisory assistance and tips to improve eligibility for future financing and other sources of finance; or 

4. Channel enquiries or complaints to BNM via BNMTELELINK:

Customer Contact Centre (BNMTELELINK)
Bank Negara Malaysia
P.O. Box 10922
50929 Kuala Lumpur 

Tel: 1-300-88-5465 
Webform: eLINK

Further inquiries

For more information, please refer to bnm.gov.my/covid19/ or contact BNM at bnm.my/LINK.

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