Micro enterprises play important role in economic development
KUCHING: Micro enterprises, which constitute 77 per cent of small and medium enterprises (SMEs) in the country, play an important role in the economic development.
Bank Negara Malaysia (BNM) Director of Development Finance and Enterprise Marina Abdul Kahar said micro enterprises also provided employment to 1.3 million people in the country, mostly in the services sector.
“The provision of financial services in Malaysia is supported by a comprehensive and costefficient ecosystem which could benefit all, including micro-entrepreneurs,” she said at the launch of the Agro TERAS financing programme at Kampung Muara Tebas here yesterday.
The event was officiated by Sarawak Modernisation of Agriculture, Native Land and Regional Development Ministry’s Permanent Secretary Bucklan Bangik who represented Deputy Chief Minister Datuk Amar Douglas Uggah Embas.
Marina said so far, the financial institutions in the country had approved RM310 billion in financing to SMEs and of the amount, RM21 billion was channelled to SMEs in Sarawak.
The micro financing scheme was introduced by BNM in 2006 to enable entrepreneurs to have access to easy and fast financing.
She said 10 local financial institutions, including Agrobank provided unsecured financing of up to RM50,000 and applicants were required to submit only basic documents like business registration certificate, licence, permit, utility bills and bank account statements.
Since it was introduced until September this year, a total of RM3.7 billion loans were approved to micro entrepreneurs under the scheme, she added.
In addition, she said BNM in collaboration with financial institutions also implemented the “Train-the-Trainers” programme to enhance SME’s capability and knowledge of financial management and business operations.
The programme, she said gave exposure to SMEs on various financial resources and assistance provided by financial institutions and various government agencies.
Marina said so far RM378 million had been approved by financial institutions to first-time borrowers after attending the programme.
She said BNM had set up several funds for businesses, including the SME Fund with an allocation of RM10.4 billion, with the money channelled through financial institutions for entrepreneurs seeking funding for working capital and production capacity upgrade.
In addition, she said BNM also created the Small Debt Resolution Scheme (SDRS) to help entrepreneurs who were saddled with bank repayment problem by applying to financial institutions such as Agrobank or BNM to reschedule their payments. To date, she said RM27.4 million of SME debts in Sarawak had been rescheduled under the SDRS scheme.
Marina advised SMEs to take advantage of the digital payment channels to reduce cheque usage to save costs and enhance operating efficiency. — Bernama