‘Expedite loan repayment assistance’
AKPK has advised SMEs facing difficulties in repaying their loans to contact AKPK as early as possible for more options to resolve their issues with their banks.
KOTA KINABALU: AKPK has advised SMEs facing difficulties in repaying their loans to contact AKPK as early as possible for more options to resolve their issues with their banks. AKPK office in KK is located in the BNM building and is an agency directly under BNM.
SME Association of Sabah (SME SABAH) was invited to a webinar hosted by AKPK KK to share the services that are provided by AKPK to assist MSMEs in Financial and Debt Management.
AKPK informed that they have unofficial figures that micros, small and medium enterprises constitute 80%, 17%, and 3% respectively, of the total 907,065 SME establishments in Sabah.
SME Sabah president N.K.Foo said that with the set-up of AKPK it will be very helpful for MSMEs in trying to resolve their debt repayments with their bankers.
During this pandemic times even multinational companies are not spared from the impact of Covid-19, what more for MSMEs, who definitely need help.
“Banks have never dealt with so many defaults in repayments from their borrowers all at the same time in their lending history,” said Foo.
“Thus, officers handling the applications for repayment assistance (RA) will not have the necessary experience, knowledge and the discretionary powers to make the right decisions. This will cause undue delays by the banks in arriving at their decisions for the application for RA. Any such delays in informing the decisions to MSMEs will have lost valuable time for MSMEs in looking for alternative solutions to their financial woes.
“This is akin to people suffering a stroke and need to receive first aid very quickly to survive. Any first aid rendered out of time will not be of any help. Likewise, such aforesaid delays will not be of help in saving MSMEs from their business failures,” he said.
Foo said it is good that AKPK is promoting venture capital financing and alternative financing for start-up enterprises, youth and technopreneurs.
“All these forms of businesses require new types of financing in line with their business models and risks; without which, these types of enterprises, technopreneurs especially, will need to resort to find financing outside of our country,” he said.
Foo hoped that BNM and the banks can further expedite the development of these types of financing to support this dynamic and contemporary businesses, which needs financial capital in the form of equity participations instead of pure bank loans.
He said SMEs residing outside Kota Kinabalu (KK), in districts such as Kudat, Ranau, Keningau, Lahad Datu, Tawau, Sandakan and Labuan have limited and difficult access to information such as those shared by AKPK.
“It’s not easy for them to join webinars because they are either not tech-savvy or busy and internet connections are poor.”
“Foo then proposed to AKPK to join SME SABAH’s outreach programmes to these areas outside KK where SME Sabah has resident Councillors. We are looking forward and hope to collaborate with AKPK and also other government organisations.
“It is our hope that through these outreach programmes MSMEs in these areas can be better served for their benefits and development,” he said.