SMEs want loan process to be made easier

GEORGE TOWN: The Federal Government must make financing for small and medium enterprises (SMEs) accessible.

Small and Medium Enterprises Association Malaysia (Samenta) national secretary Yeoh Seng Hooi said the application process should be straightforward and simple so that loans could be released without any delay.

He was commenting on the RM7bil allocation for the Business Financing Guarantee Scheme to SMEs and RM2bil for the SME Tourism Fund to provide soft loans with interest subsidy of 2%.

Yeoh said this should spur entrepreneurs to move into the tour operating business.

“We can also expect the move to increase tourist arrivals,” he said.

In Johor Baru, SMEs lauded the RM1bil allocation for them to automate and reduce their dependency on foreign workers.

Industrial water treatment business owner P. Sivakumar said the move was timely as SMEs which automated would be better positioned to become vendors to the many local and multinational companies moving to Iskandar Malaysia.

Electrical components manufacturing company owner Teh Kee Sin said the allocation would assist fac- tories like his to upgrade machinery and employ more Malaysians.

“My factory which operates round the clock has more than 100 workers, with almost equal ratio between locals and foreigners,” he said.

He said the RM5bil working capital allocated by the Government showed it appreciated the contributions of SMEs.

“We can utilise the money to improve our operations and bring our companies to the next level,” he said.