SSM: In­ter­est scheme can be a fund­ing source for SMEs

New Straits Times - - Business -

KUALA LUMPUR: The in­ter­est scheme can serve as an al­ter­na­tive source of busi­ness fund­ing for small and medium en­ter­prises (SMEs) un­der the new In­ter­est Scheme Act 2016, says the Com­pa­nies Com­mis­sion of Malaysia (SSM).

Chief ex­ec­u­tive of­fi­cer Datuk Zahrah Abd Wa­hab Fen­ner said the law was a small part of the Com­pa­nies Act 1965, namely Di­vi­sion 5, Part 4 (now re­pealed), and ap­plied pri­mar­ily to pro­tect con­sumers in golf, recre­ational clubs, me­mo­rial park and time-share schemes.

“Ba­si­cally, the in­ter­est scheme in­volves the pool­ing of fi­nan­cial con­tri­bu­tion from the pub­lic in ex­change for an in­ter­est in a par­tic­u­lar scheme.

“Cur­rently, there are about 204 in­ter­est schemes reg­is­tered un­der the Act in­clud­ing those of golf clubs, me­mo­rial parks, prop­er­ties and agri­cul­tural ac­tiv­i­ties.

“All are un­der the ‘Bhd’ sta­tus with the to­tal fund­ing raised be­ing RM20.6 bil­lion.

“With the new Act, we have also ex­tended the leg­is­la­tion to in­clude pri­vate lim­ited (Sdn Bhd) com­pa­nies and this give an op­por­tu­nity for SMEs to raise funds un­der the in­ter­est scheme,” said Zahrah af­ter the open­ing of SSM’s one-day con­fer­ence, themed “In­ter­est Schemes Act 2016: Al­ter­na­tive Fi­nanc­ing for Busi­ness Growth”, here, yes­ter­day. Bernama

Datuk Zahrah Abd Wa­hab Fen­ner

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