‘AIM’s 10 pct loan interest too high for SMEs’

MIRI: A proposal has been made to reduce the interest imposed on loans provided by Amanah Ikhtiar Malaysia (AIM) to small and medium enterprises (SMEs), to between three and four per cent.

According to Assistant Minister of Entrepreneur and SME Development Datuk Mohd Naroden Majais, the present 10 per cent interest rate is considered ‘very high’ compared to those imposed on similar loans by other agencies.

The AIM, Malaysia’s largest micro-credit organisation, was established in 1987.

“On behalf of the state government, I will write to AIM headquarters soon to propose that the current 10 per cent interest on loans be reduced to three-four per cent, so that it could be standardised with other financial agencies that offer similar loans.

“I will get YB (Lambir assemblyman) Ripin Lamat, in his capacity as the patron of Kelab Usahawan Ikhtiar Miri (KUIM), to jointly sign the letter,” the assistant minister spoke at the launch of KUIM at Miri City Council (MCC) field yesterday.

Naroden was responding to the call made by Ripin in his speech earlier, where the latter also wanted the government to set up packaging centres here as part of the efforts to help local SMEs become global players.

It is learnt that Ripin has voiced these matters during the last State Legislative Assembly (DUN) sitting.

Back on SMEs, Naroden said it is vital for this sector to continue its progress as it plays a key role in the development of the national economy.

“The SME sector has developed tremendously – from 42,850 registered with SME Corporation Malaysia in 2011, to 62,000 in 2016.

“This shows that there is great interest in business – this figure would be much higher if we were to include SMEs that have not set up companies.

“SMEs contribute 51 per cent to the country’s economic development, encompassing all aspects from job opportunities, business volume and taxation” he said.

Naroden also reminded entrepreneurs to be bold and innovative in their ventures, taking full advantage of not only the incentives provided by the government, but also the advancement in technology including the Internet to tap the vast opportunities in the global market.

“For example, the Pan Borneo Highway project – upon its completion in the next five to 10 years, would speed up transportation and expedite the marketing of your products within Sarawak.

“However through the Internet, you can market your products within seconds – it’s borderless. As such, you must start today; don’t wait,” he said, pointing out that outside Malaysia, there are more than 600 million consumers.

Miri District Officer Abdul Aziz Mohd Yusuf, Subis District Officer Husaini Bakri, political secretary to chief minister Jalani Mokhtar, AIM Northern Sarawak manager Suharno Ali and KUIM chairwoman Faridah Dollah witnessed the launch yesterday.