Welcome news for SMEs and startups

  • Nation
  • Friday, 29 Jan 2016

PETALING JAYA: The Prime Minister’s announcement to inject another RM6bil into government agencies intended to help small and medium enterprises (SMEs) and startups has swept away earlier worries of the community.

Minister in the Prime Minister’s Department Datuk Seri Dr Wee Ka Siong said “this is very happy news” as many SMEs were previously worried that allocations for the industry would be cut in view of the turbulent economy.

“During this time of difficulty, the Prime Minister has decided to add in funds to help SMEs. This is a welcome move,” he told reporters at the Putrajaya International Convention Centre yesterday.

During the announcement of Budget 2016’s recalibration, Datuk Seri Najib Tun Razak said an additional RM6bil would be channelled to SMEs and startups via development financial institutions and the Government’s venture capital arms.

In a statement, Dr Wee said he would ensure that the Secretariat for the Advancement of Malaysian Entrepreneurs (SAME), an agency under his ministerial purview, would continue to assist SMEs eligible for the funds.

“They need to obtain these essential funds for their expansion plans, research and development and also to launch them into the international market to take advantage of the regional economic blocs like the Asean Economic Community and the upcoming TPPA,” he said.

SAME chief executive Neil Foo said the allocation would act as a catalyst for startups and he believed more jobs would also be created.

“In the short and medium-term, we can see the increase in enterprises, as well as the creation of value for their future business models,” he said.

Foo pointed out that disbursing the funds via venture capital agencies would offer business with an alternative platform to raise capital, considering that banks were more reluctant to give loans due to the current economic uncertainties.

“At least they (the Government) are looking beyond the framework of commercial banking.

“Usually, investment arms such as the Malaysia Venture Capital Management Bhd and the Cradle Fund are bolder in investing in businesses. For a startup with a good business model, investors will buy the concept,” he said.

“The recalibrated Budget continues to show the importance of venture capital in Malaysia,” he added.

Article type: metered
User Type: anonymous web
User Status:
Campaign ID: 1
Cxense type: free
User access status: 0
Subscribe now to our Premium Plan for an ad-free and unlimited reading experience!

Business , budget 2016 , business , smes , Wee Ka Siong


Next In Nation

Umno purge: 'You are now free', PN leaders, Annuar Musa tell those axed by Umno
Umno purge: It will be a collective party decision, says Rafizi if sacked leaders keen to join PKR
Eight cops including four senior officers detained in Tawau murder probe
Umno purge: No surprise KJ sacked, says Pak Lah’s former advisor
Parliament needs to be independent, says Rais
Floods: Slight increase in evacuees in Johor
Man found dead inside car in Penampang
Covid-19 Watch: 236 new cases bring total to 5,035,613
Unbowed, unbent, unbroken, says Khairy over Umno sacking
Varsity dream realised after years of toil

Others Also Read