Small Medium Enterprise Development Bank Malaysia Bhd (SME Bank) has allocated RM1 billion in financing especially for local contractors appointed for civil works packages of the East Coast Rail Link (ECRL) project.
Finance Minister Lim Guan Eng said each qualified local contractor would have access of up to RM50 million through a combination of term financing and revolving credit.
“Anything above the RM50 million limit will be evaluated on a case-by-case basis,” he said in his speech at the signing of a memorandum of understanding between SME Bank, Malaysia Rail Link SDN Bhd and China Communications Construction (ECRL) Sdn Bhd (CCC-ECRL) on Monday.
Ministry of Entrepreneur Development Secretary-General Datuk Wan Suraya Wan Mohd Radzi and Ambassador of China to Malaysia Bai Tian were also present.
The tripartite MoU is to facilitate financial solutions for Malaysian subcontractors in the ECRL project and accelerate the commencement of civil works under the 40 per cent local participation portion of the 640-km rail infrastructure from Kota Bharu to Port Klang.
Lim said the financing facility was the first from SME Bank for the ECRL project.
-BERNAMA
