By Sofia Nasir
SHAH ALAM, Dec 12 — The state government is exploring a more sustainable system to provide loan assistance to entrepreneurs, including establishing its own bank in the future.
Menteri Besar Dato’ Seri Amirudin Shari said the proposal comes after his recent meeting with the founder of the world’s leading microcredit bank Grameen Bank, Prof Muhammad Yunus.
“I asked him about the success of this microcredit loan system, which has led to branches being opened in 40 countries. One key piece of advice he shared was that such an institution cannot rely on public or government funds indefinitely. As a result, we are now moving in that direction.
“Our direction may not be clear today or even in five years, but perhaps ten years from now, we aim to have our own bank that can provide microcredit loans in a way that is not burdensome,” he said.
Amirudin was speaking at the officiation of the 2024 Hijrahpreneur Awards ceremony, at the Ideal Convention Centre today.
The ceremony, which celebrated and recognised the achievements of entrepreneurs, was also attended by the state executive councillor for youth, sports, and entrepreneurship Mohd Najwan Halimi and Hijrah Selangor Foundation’s chief executive officer Datuk Mearia Hamzah.
Meanwhile, the Menteri Besar acknowledged receiving feedback from entrepreneurs regarding the stricter loan conditions imposed by Hijrah Selangor in recent months.
He said these measures were necessary due to some borrowers who were exploiting the system by refusing to repay their debts, ultimately burdening the agency.
“I am aware of the recent criticism regarding the stricter loan conditions, but these changes were made after careful consideration and experience.
“What we aimed for was to ensure that the selection of borrowers was accurate, targeting those who truly needed the assistance and not those looking to exploit the system,” Amirudin said.
In October, Hijrah Selangor imposed additional conditions after over 30,000 borrowers or entrepreneurs failed to repay their loans within the specified period.
Mearia said the decision was made after the agency accumulated RM206 million in non-performing loans from 2015 to December 2023.
