KUALA LUMPUR: Bumiputra and Chinese small business owners can seek microloans of up to RM30,000 each, from a total allocation of RM80mil, to boost their businesses during the upcoming festive seasons, says Steven Sim.
The Entrepreneur Development and Cooperatives Minister said the allocation was part of two new financing schemes, namely, the People’s Ramadan Business Financing Scheme (Barakat) and the Special Financing Programme for Chinese-Owned Micro Enterprises (Berkat).
“Barakat, which is under the Tekun Nasional agency, has an allocation of RM50mil, while Berkat, which is under SME Corp Malaysia, has an allocation of RM30mil,” he said during a press conference at SME Corp yesterday.
“Barakat is aimed at small and micro businesses, especially Malay entrepreneurs who operate at markets and Ramadan bazaars.
“The rate charged is 3% per annum and a financing period of up to 12 months.
Good news: Sim (centre) speaking at a press conference on Barakat and Berkat, surrounded by industry leaders and senior officials. — RAJA FAISAL HISHAN/The Star
“We hope that with this financing, we will be able to help our small entrepreneurs, especially during Ramadan, for their working capital.
“It will help them increase sales, adopt new technology and run their businesses smoothly, with the hope of achieving significant results.”
Barakat is also expected to benefit small traders and hawkers in the food and beverage, clothing and daily necessities sectors, supporting business activities throughout Ramadan and ahead of Aidilfitri.
Meanwhile, Berkat is a special business festival financing programme for Chinese entrepreneurs in conjunction with the Chinese New Year, said Sim.
“This special assistance will be given to those involved in Chinese New Year-related businesses, including the food sector.
“This sector needs financing, especially for producing traditional Chinese pastries and other foods,” he said yesterday.
Sim added that financing for Berkat borrowers will be channelled through the peer-to-peer platform CapBay, which the Securities Commission Malaysia regulates.
He said the schemes, which commence today, are expected to benefit about 1,666 recipients for Barakat and 1,000 for Berkat, adding that borrowers can have their applications settled within a week.
“Before this, applicants need to wait 30 to 40 days for their paperwork and approvals to be settled.
“So, I decided to reduce bureaucracy and shorten waiting times,” said Sim.
These schemes include the “ABCD strategy” to ensure entrepreneurs can access capital and navigate the application process more easily.
Previously, Sim mentioned that the ABCD pillars represent Accelerating Productivity, Bureaucracy Reduction, Capital Accessibility and Developing Market Access – all aimed at strengthening the competitiveness of local busines-ses.
