Small and Medium Enterprises (SMEs), including micro-enterprises, are important for economic growth, creating employment and generating income.
As such, funding is given to entrepreneurs to help further develop their businesses and introduce them to micro-credit schemes, says Industrial and Entrepreneur Development Minister Datuk Amar Awang Tengah Ali Hasan.
“They play an integral part to Malaysia’s economic transformation process, representing 98.5 per cent of the business community. The same scenario also applies to Sarawak,” he said in his winding-up speech at the Sarawak Legislative Assembly yesterday.
“SMEs are closely related to every facet of the economy, from micro-enterprises to the rural community, the bottom 40 per cent of the income pyramid, suppliers to businesses and end-producers,” he stated.
Based on SME Annual Report 2017/2018, share of Malaysia’s SMEs to GDP was 37.1 per cent in 2017 and expected to increase to 37.4 per cent in 2018.
He added that in 2017, SMEs contributed 66 per cent to employment opportunities and expected to grow to 66.2 per cent in 2018.
“Therefore, the full potential of SMEs must be harnessed in order to achieve a high-income economy.
“In this respect, my ministry will continue to assist our SMEs in providing various entrepreneur development programmes and financial assistance, as well as the provision of infrastructure support, including Anjung Usahawan and industrial parks.
“For the year 2019, my ministry has allocated RM103.7 mln to implement entrepreneur development programs such as training, funds, development and product marketing, business infrastructure (Industrial Park and Anjung Entrepreneur) and advisory services,” he elaborated.
Meanwhile, agencies under the federal government as follows also provided RM317.36 mln for the same purpose in 2019: AIM – RM232 mln; SME Bank – RM29.4 mln; TEKUN – RM25 mln; MARA – RM22.36 mln; MIDF – RM6.5 mln; and PUNB – RM2.1 mln.
The Small and Medium Industry Loan Scheme is a simple loan up to a maximum of RM250,000 with a four per cent interest rate (within a loan of up to seven years).
“Since its introduction in 1999 until March 2019, RM20.6 mln has been channelled to 237 SMEs.
“As of March 2019, my ministry has approved a RM1.19 mln SPIKS loan which has leveraged nine SMEs for round capital, the purchase of machines or equipment and renovation of premises.
“My ministry has also implemented the Graduate Entrepreneurship Programme (GERAK) and Technical and Vocational Entrepreneur (USTEV) programme whereby both programmes are intended to encourage graduates and graduates of vocational and technical institutions to start and grow their businesses and as of March 2019, a total of RM769,316 was channelled to 107 youth entrepreneurs,” he said.
Awang Tengah further mentioned that his ministry was planning to introduce micro-credit scheme to assist micro entrepreneurs, especially entrepreneurs in the B40.
“The scheme is aimed at providing easy loans to them to start or expand their businesses and it will be open to all eligible micro entrepreneurs in Sarawak, irrespective of race,” he said.
He stated that the Sarawak Economic Development Corporation (SEDC) offered the following financial assistance schemes: Business Fest Scheme – RM1,000 interest-free loan as capital to sales during the fair / expo; Niaga Jaya scheme – interest-free loan, a maximum of RM10,000 for the purpose of business development; Premium Business Scheme – easy loans with 2% interest rate, RM11,000-RM50,000 for the purpose of business development; Entrepreneur Development Programme cottages – aid scheme in the form of a combination of 60% loan and 40% grant of RM20,000 for the purpose of product development; and PUTERA – grant aid in the form of business equipment with a maximum of RM5,000.
“For 2019, SEDC has allocated RM5.2 mln to implement the business assistance scheme and to date, SEDC has provided assistance totalling RM592,056 to 135 entrepreneurs through these programmes,” he noted.
During the same period of the year, the following agencies also channelled funds to entrepreneurs in Sarawak: AIM – RM42.6 mln to 33,789 entrepreneurs; SME Bank – RM30.2 mln to 31 entrepreneurs; MARA – RM14.4 mln to 587 entrepreneurs; TEXT – RM12.2 mln to 605 entrepreneurs; Department of Agriculture Sarawak – RM9.7 mln to 600 entrepreneurs; MIDF – RM1.8 mln to an entrepreneur; PUNB – RM1.72 mln to five entrepreneurs; and TERAJU – RM1.6 mln to six entrepreneurs.
“In order to improve the skills and knowledge of local entrepreneurs, my ministry will continue to implement various capacity development programmes such as Entrepreneurial Training, Food Processing Technology Course, Product Development and so forth.
