PETALING JAYA: Small and medium enterprises (SME) want the government to ensure that the application process for RM44bil in loans and funding guarantees is made easier and with more transparency.
In his Budget 2024 announcement, Prime Minister Datuk Seri Anwar Ibrahim said RM44bil in loans and financing guarantees will be provided for micro, small and medium enterprises (MSMEs).
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SME Association president Ding Hong Sing (pic) suggested that the review and approval of financing loans for SMEs be given to Malaysian Industrial Development Finance Bhd (MIDF).
Ding claimed that over the past year, micro and small business operators have encountered difficulties in securing financing approval due to the cumbersome application process, which, in turn, has hindered the government’s efforts to support small and medium enterprises effectively.
He called for a unified approach to processing loans for micro and small businesses through MIDF.
“Aiding SMEs to revitalise the national economy and expand internationally is important because their success is critical for the country’s economic growth,” he said when contacted.
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In the revised Budget for 2023, the government pledged to provide a range of financing facilities and guarantees totalling RM40bil.
These funding initiatives were to be facilitated by various institutions such as Bank Negara Malaysia (BNM), Bank Simpanan Nasional (BSN) and Tabung Ekonomi Kumpulan Usaha Niaga (Tekun).In Budget 2024, HRD Corp will get RM1.6bil to provide 1.7 million training exercises in 2024. It will plan to reallocate 15% of the total levy collection to implement the Madani Training Programme, a training programme for micro SMEs and vulnerable groups.Ding, however, said this approach is unfair to SMEs.
“The levy collection should be used for SMEs to train their own workers,” he said.
Small and Medium Enterprises Association (Samenta) secretary-general Yeoh Seng Hooi called for increased support to first-time SME exporters, saying that the RM5,000 grant for digitalisation and automation is insufficient for SMEs. He proposed raising the grant amount to at least RM50,000, focusing on small enterprises while excluding medium-sized entrepreneurs.
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He noted the importance of ensuring that the grant approval process is free from “cartel” influences.
Yeoh also talked about the continuing significance of domestic demand for SMEs, especially with the Government Procurement Bill approaching implementation.
He urged the government to foster transparent etendering processes with preferences for targeted companies requiring support to help SMEs without increasing costs.
Associated Chinese Chambers of Commerce and Industry of Malaysia (ACCCIM) SME committee chairman Datuk Koong Lin Loong also said the RM5,000 grant is insufficient to assist businesses and recommended increasing it to RM15,000.
He called for the reintroduction of export subsidies for SMEs to facilitate their products’ entry into the international market.
Koong said only 11% to 12% of Malaysia’s exports originate from SMEs, underscoring the need for comprehensive export support to ensure long-term sustainability.
