Minos confident entrepreneurs will support creation of bank for SMEs

KUCHING: There is no doubt that small and medium enterprises (SMEs) in Sarawak would support the proposed establishment of a commercial bank for them.
 
Political observer Datuk Peter Minos said one of the key reasons for support is that many SMEs find difficulty getting business capital from ordinary commercial banks, especially in the absence of full or necessary collateral.
 
He also said there is much red tape and bureaucracy involved in dealing with commercial banks, which can be intimidating and off-putting.
 
“If a small businessman needs to start or expand his business with RM100,000 urgently, he is in no mood for excessive red tape or getting full collaterals of land or properties. It is also tough to get a guarantor.
 
“This is where the proposed SME bank comes in, operating with the minimum of bureaucracy in the insistence of full and solid collateral as well as a speedy and expeditious loan approval,” he said today (May 6).
 
Earlier, Deputy Premier Datuk Awang Tengah Ali Hasan said the proposed establishment of a commercial bank for SMEs would strategically complement the Development Bank of Sarawak (DBOS) in bringing Sarawak to the next level of economic development.
 
Touching on the proposed state-owned boutique airline serving Sarawakians, Minos said this is very much welcomed.
 
He pointed out that it is tough for Sarawakians to move around by air because it is too costly, which is not good for domestic tourism and local businesses.
 
“If there is money for it, why not? The existing airlines are usually not that friendly, charging fares that are truly prohibitive and quite beyond the budget of ordinary Sarawakians.
 
“Like now, it costs a fortune to go to Langkawi and back for a break. This is the same for flying to Miri from Kuching,” he said.
 
Minos reiterated that he fully supports Sarawak’s proposed SME bank and boutique airline.