KUSKOP commits to faster MSME financing with RM60 billion allocation and 14-day approval target for small loans.
ALOR SETAR: The Ministry of Entrepreneur and Cooperatives Development (KUSKOP) is committed to ensuring micro, small and medium enterprise (MSME) entrepreneurs have faster and easier access to financing through various improvement measures.
Its Minister Steven Sim Chee Keong said the government had allocated RM60 billion in financing this year to meet demand and assist MSME entrepreneurs in expanding their businesses and enhancing their competitiveness, particularly at the international level.
He said the increased allocation was the result of KUSKOP’s efforts with the Ministry of Finance (MOF) to ensure more funds were made available to assist entrepreneurs, particularly amid global economic uncertainties.
“When I came to KUSKOP, the first thing I did was to ensure that more funds were made available for MSMEs. The problem that often occurs is that when entrepreneurs need financing, they do not know where to seek assistance.
“We want to ensure that funds are readily available to enable entrepreneurs to access financing quickly and easily,” he said at the MSME Financing and Market Access Briefing here today.
Also present was SME Corporation Malaysia (SME Corp) Chairman Datuk Teng Chang Khim.
Sim said that apart from increasing financing allocation, KUSKOP was also focusing on efforts to reduce bureaucracy in the financing application process.
He said financial institutions under the ministry, including SME Bank, had been urged to expedite the financing approval process for applications of RM1 million and below, with a target of completing the process within 14 days
“I know some may say that achieving the 14-day target is difficult, but if we do not set this target, the process could take up to 14 months.
“This is our aspiration to ensure that the financing process is faster and more entrepreneur-friendly,” he said.
In his speech, Sim also announced that financing under the Special Financing Programme for Chinese-Owned Micro Enterprises (BERKAT) had been increased from RM30,000 to RM100,000.
Meanwhile, Teng said MSMEs were the backbone of Malaysia’s economy, representing almost 97% of businesses in the country.
“In Kedah, there are an estimated 49,663 MSMEs, accounting for 4.6% of all MSMEs in Malaysia. The state has advantages in the agro-food, food processing, agricultural technology, manufacturing and services sectors.
“This potential creates opportunities for MSMEs to increase the added value of their products, strengthen competitiveness and expand their markets domestically and internationally,” he said.
