MELAKA: Over RM479 million worth of debt arrears owed by 140 micro, small and medium enterprises (PMKS) in Melaka have been successfully restructured through the PKMS programme via the Small Loan Settlement Scheme (SPPK) from 2020 to February this year.

Melaka branch Credit Counselling and Debt Management Agency (AKPK) head Mohammad Farid Fadzil said the initiative was implemented after the AKPK received the mandate from Bank Negara in March 2020 to play a more proactive role in providing free advice and assistance to sole proprietors and micro and small entrepreneurs.

He said the assistance covers aspects of business cash flow management, especially for those facing financial difficulties in terms of loan repayment or financing.

“The AKPK will assist the PKMS collectively through a loan restructuring and loan repayment plan agreed upon by the borrower and financial institution involved.

“As such, the PMKS communities facing problems with loan repayment or cash flow can come forward to receive advice and counselling provided by AKPK,” he said in a statement today.

Elaborating, he said that under the SPPK, the manufacturing sector contributed 67 per cent or more than RM4.47 million of the restructured debts compared to the agriculture sector, which only contributed 33 per cent or RM2.2 million.

As for sole proprietors in the service sector, he said it contributed 80 per cent or more than RM4.3 million of the restructured debt under the Debt Management Programme (PPK) compared to just 20 per cent from the retail, construction, manufacturing and other sectors.

Mohammad Farid said the restructurings involved loans of less than RM500,000.

He said the restructuring of these debts is a recovery process that provides relief to traders or entrepreneurs within specified periods and can even help restore their business financial situations.

“During this period, it also encourages traders to manage their existing loans or financing first and learn how to control expenses compared to their business income,” he said.

In addition, he said AKPK also provides the Smart Money Smart Business module, covering techniques and the provision of relevant and more systematic business account management templates to be applied by PMKS.

“This module details the characteristics of business financial goals and planning sources of business income compared to expenses through calculations using a very simple and interactive calculator,” he said.

He also urged traders and entrepreneurs in the state to improve and expand their existing or new businesses by utilising the various payment incentives and training provided by government agencies, including Bank Negara Malaysia, Majlis Amanah Rakyat, National Entrepreneur Group Economic Fund (Tekun), SME Corp and Perbadanan Usahawan Nasional Bhd.

He said more information on the services provided by AKPK could be obtained from or AKPK’s official social media platforms.

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