Government Provides Over RM5 Billion In Micro Financing For Small Traders And Entrepreneurs
KUALA LUMPUR: The government has allocated more than RM5 billion in micro financing facilities this year to assist small traders and micro entrepreneurs in strengthening their businesses and generating sustainable income.
Prime Minister Anwar Ibrahim said the initiative is expected to benefit more than 400,000 micro entrepreneurs nationwide, with financing of up to RM100,000 available for eligible applicants.
According to him, the financing schemes will be channelled through several agencies and development financial institutions including Amanah Ikhtiar Malaysia, Bank Simpanan Nasional, TEKUN Nasional, Majlis Amanah Rakyat, Agrobank and Bank Kerjasama Rakyat Malaysia.
“Madani Economy is built upon the values of compassion, justice and equality. These micro financing facilities must reach people who want to earn a lawful livelihood and build a more dignified life,” he said in a statement today.
He said this after holding a meeting with chief executive officers of several micro financing agencies, including AIM, BSN, TEKUN Nasional, Agrobank, Mara, SME Bank and Bank Rakyat.
According to Anwar Ibrahim, certain schemes will offer financing rates as low as three per cent annually to reduce the financial burden on borrowers.
He added that related financial institutions have been instructed to intensify outreach efforts to reach more small traders, hawkers and micro entrepreneurs, particularly those facing capital constraints in expanding their businesses.
He said the financing application process should also be simplified, while loan conditions must not burden applicants.
“We want this financing to be distributed fairly, reasonably and in a way that is easily accessible to those who genuinely need assistance,” he said.
The micro financing facilities are targeted at various groups including small traders, night market vendors, women, youths, gig workers, TVET graduates, small contractors, farmers and asnaf groups.
He also clarified that the micro financing initiative is separate from the previously announced financing packages for micro, small and medium enterprises (MSMEs), including the RM5 billion Special SME Assistance Facility under Bank Negara Malaysia and another RM5 billion under Syarikat Jaminan Pembiayaan Perniagaan.
Overall, the government has allocated more than RM15 billion in financing support for micro, small and medium enterprises this year.
-wilayah.com.my
