KUSKOP Approves RM2.5 Million Barakat Financing to Support Penang Micro Entrepreneurs
Hundreds of traders benefit as small businesses prepare for Ramadan and festive sales surge
GEORGE TOWN, March 4 — The Ministry of Entrepreneur Development and Cooperatives (KUSKOP) has approved RM2.5 million in financing for micro entrepreneurs in Penang under the Skim Biaya Ramadan Perniagaan Rakyat (Barakat), a special initiative aimed at supporting small businesses ahead of the Ramadan and Aidilfitri festive season.
In a statement, the ministry said that since applications opened, a total of 357 entrepreneurs have applied for the financing scheme, with most of them consisting of bazaar traders and small-scale business operators seeking additional capital to expand their operations.
The Barakat financing scheme was introduced to provide accessible and affordable funding for micro entrepreneurs, allowing them to take advantage of increased consumer demand during Ramadan and Syawal.
KUSKOP noted that Minister of Entrepreneur Development and Cooperatives Datuk Seri Steven Sim Chee Keong recently conducted a field visit to Uptown Bandar Perda in Bukit Mertajam to observe the progress of local businesses and meet entrepreneurs who have benefited from the programme.
During the visit, the minister engaged with traders and handed over mock cheques to three recipients as a symbolic representation of the financing support provided through the Barakat scheme.
One of the recipients, Mohd Rahim Ibrahim, who has been running a jeans retail business for 11 years, received RM30,000 in financing to strengthen his inventory ahead of the festive season.
Another entrepreneur, Mohamad Afif Mohamad Salim, who has been operating a clothing business for six years, also obtained RM30,000 to increase his stock and cater to higher customer demand.
Meanwhile, Moktar Daud, who has been in the eyewear business for two decades, received the same amount of financing to expand his product supply and prepare for the surge in customers approaching Syawal.
According to KUSKOP, the ministry, together with Tabung Ekonomi Kumpulan Usaha Niaga Nasional (TEKUN Nasional), is working to streamline the financing application process to ensure entrepreneurs receive assistance quickly and efficiently.
Efforts are being made to reduce bureaucratic procedures and accelerate the disbursement of funds so that traders can utilise the capital in time to expand their businesses during the peak festive season.
Under the Barakat scheme, eligible entrepreneurs can apply for financing of up to RM30,000 with a profit rate of three per cent per year.
The financing tenure is set at up to 12 months, allowing entrepreneurs adequate time to manage repayments while continuing to operate and grow their businesses.
Applicants are not required to provide mandatory savings deposits as part of the application requirements. However, they must contribute to the Social Security Organisation (Perkeso), ensuring social protection coverage for self-employed individuals.
Applications for the Barakat scheme will remain open until March 15, and KUSKOP has encouraged eligible entrepreneurs to submit their applications before the deadline.
The scheme is open to Bumiputera entrepreneurs and Malaysian citizens aged between 18 and 65.
Existing TEKUN entrepreneurs are also eligible to apply, provided that their total financing does not exceed the maximum limit of RM100,000.
Through this initiative, the government hopes to empower more micro entrepreneurs, strengthen small businesses and stimulate local economic activity during the festive season.
-wilayah.com.my
