KUALA LUMPUR, Oct 12 — The additional RM100 million allocation by the government to SME Corporation Malaysia (SME Corp Malaysia), specifically for micro-enterprises, indirectly recognises the agency’s role ad contribution in spearheading the development of micro, small and medium-sized enterprises (MSMEs).
Chief executive officer Rizal Nainy said the substantial allocation for micro-enterprises is highly pertinent because of the group’s significance in helping achieve a more inclusive, sustainable and balanced growth vision within the framework of the MADANI Economy.
“I express my deep appreciation and gratitude to Prime Minister Datuk Seri Anwar Ibrahim and the Ministry of Entrepreneur Development and Cooperatives (MEDAC) for this additional allocation.
“The new economic framework announced by the prime minister themed ‘Madani Economy: Empowering the People’ is very positive in supporting the development of MSMEs.”
Rizal added that the additional funds allocated under the Micro Madani Programme are specifically for micro-enterprises, which are enterprises with annual sales of less than RM300,000 or fewer than five employees.
He said SME Corp Malaysia aimed to benefit more than 20,000 micro-enterprises under this programme.
“I call on and recommend micro-entrepreneurs to seize these opportunities and for associations and business councils to disseminate information about this programme and assist their members in applying for various initiatives and incentives offered,” he said.
On challenges faced by MSMEs, Rizal said access to financing is the most challenging aspect for micro-enterprises because of the difficulty to obtain financing from banks due to weak credit and financial accounts, lack of business advancement and limited banking support.
Therefore, he said SME Corp Malaysia introduced the Micro MADANI Strengthening Programme (Micro Madani), which provided financial facilities to micro-enterprises in the form of grants and loans through five main initiatives — Micro Business Grant (GPM), Micro Biz Financing (MBF), Geran Perniagaan Belia Mikro@TUBE (Tunas Usahawan Belia Bumiputera), Bumiputera Enterprise Enhancement Programme (BEEP) Plus Sabah and Sarawak and Voucher Incentive for MSMEs status registration.
Rizal said GPM provided matching grants up to 70 per cent of project costs or a maximum of RM200,000 for micro-enterprises to enhance their capabilities and capacities through product packaging improvements, equipment and machinery procurement, ICT and e-commerce implementation, business premise rental and promotional activities to increase sales and branding.
On Geran Perniagaan Belia Mikro@TUBE initiative, he said that 262 TUBE Madani participants who have completed basic entrepreneurial training are now undergoing a 12-month monitoring period and have the opportunity to receive business grants of up to RM30,000.
On BEEP Plus Sabah and Sarawak initiative, he said it is specifically implemented for MSMEs in Sabah and Sarawak, particularly indigenous Bumiputera entrepreneurs, through integrated assistance, including matching grants up to a maximum of RM250,000 for capacity development.
Besides that, he said the MBF scheme, implemented by SME Corp Malaysia in collaboration with the Malaysian Industrial Development Finance Bhd (MIDF), provided loans ranging from a minimum of RM50,000 to a maximum of RM200,000 with an annual profit rate as low as two per cent for micro-enterprises to finance working capital.
He said the MBF financing also provided financing margins of up to 100 per cent of the eligible expenditure for a maximum of five years.
Additionally, he said SME Corp Malaysia also provided financial assistance in the form of RM100 vouchers for the exemption of the MSME status application processing fee applied under SME Corp Malaysia.
“As of September 2023, SME Corp Malaysia has approved the registration of 27,054 applicants with MSME status,” he said.
For further information please visit smecorp.gov.my/MIKROMADANI.
— Bernama
