KUALA LUMPUR: The establishment of the country’s first financial guarantee institution, Danajamin Nasional Bhd, will give companies, especially small and medium enterprises (SMEs), easier access to funding.
“This will surely help the growth (of the economy),” International Trade and Industry Minister Datuk Mustapa Mohamed told reporters at the annual Productivity Report and Productivity Award 2008 by the Malaysia Productivity Corporation here yesterday.
He added that the government-owned institution was an important component of the second stimulus package announced in March.
Danajamin, with a paid-up capital of RM1bil, can guarantee up to RM15bil of bonds to provide greater access for local companies to raise funds in the bond market.
The Prime Minister’s Office had earlier released a statement that the paid-up capital would be raised to RM2bil if necessary.
Later, at a press conference after a meeting with SME bumiputra entrepreneurs’ associations, Mustapa said RM3mil of the RM10mil Services Sector Capacity Development Fund (SSCDF) had been disbursed.
For more information, visit http://www.mida.gov.my and http://www.midf.com.my.
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