SHAH ALAM -The Selangor state government plans to expand its Selangor Advance (SA500) programme to support the cash flow needs of companies involved in state infrastructure projects, including those undertaken at the district and local authority levels.
Menteri Besar Datuk Seri Amirudin Shari said the proposal, introduced under Phase Two of the Selangor Resilience Strengthening Package, comes amid challenges faced by companies in the logistics and manufacturing sectors due to rising prices of goods caused by disruptions in supply chains and sources of goods.
"Since its introduction during the COVID-19 pandemic, a total of 1,398 companies have benefited from Selangor Advance, which helps expedite payments through existing invoices and facilitates transactions between businesses.
"With an allocation of RM100 million, the initiative is expected to benefit 500 companies and contractors operating in Selangor," he said while tabling the package at a special sitting of the Selangor State Legislative Assembly here today.
Introduced in the post-COVID-19 period, SA500 is a Shariah-compliant financing scheme based on the Tawarruq concept, designed to help small and medium enterprises (SMEs) address cash-flow constraints.
Through the initiative, contractors and service providers can receive payment for completed works within a shorter timeframe, enabling businesses to maintain sufficient working capital to sustain their operations.
Amirudin said the state government will also introduce interest-free financing of up to RM10,000 for micro, small and medium entrepreneurs through a collaboration between Yayasan Hijrah Selangor (HIJRAH) and Platform Selangor (PLATS).
The financing, with a repayment period of up to three years, will be channelled through HIJRAH's DANA PLUS digital application and is expected to benefit 2,000 registered entrepreneurs looking to start or expand their businesses.
"For entrepreneurs affected by global supply chain disruptions and declining business performance, the state government is also providing the option to restructure their loans through HIJRAH.
"A total of 6,000 entrepreneurs with existing HIJRAH financing may apply for restructuring without incurring additional interest or penalty charges to help ensure business continuity during these challenging times," he said.
On support for agropreneurs, Amirudin said the state government has agreed to increase assistance for farmers and fishermen, benefiting 2,469 recipients through livestock feed vouchers, fertiliser assistance, fuel vouchers or cash aid ranging from RM300 to RM600, depending on harvesting seasons or on a monthly basis.
Additionally, 500 agropreneurs will be offered financing of up to RM10,000 per person, with financing costs to be fully borne by the state government to ensure the sustainability and long-term financial viability of industry players, enabling the sector to continue providing sustainable jobs and career opportunities in the long term.
Meanwhile, Amirudin said 30,000 job seekers in Selangor will also be involved in the Selangor Career Programme 2026, which will be organised more comprehensively, giving priority to those who have lost their jobs this year.
"Through collaboration with agencies such as the Social Security Organisation as well as companies in the retail, manufacturing and logistics sectors, the state government will work with stakeholders and displaced workers to match their skills with industries requiring similar expertise," he said.
Earlier on, Amirudin tabled Phase Two of the Selangor Resilience Strengthening Package, comprising 15 initiatives with a total allocation of RM209.26 million as a strategic measure to address the impact of the global supply crisis arising from the conflict in West Asia.
He said the package goes beyond direct financial assistance and includes broader economic empowerment measures to ensure the state's resources and revenue can benefit the wider community. - BERNAMA