Entrepreneur and Cooperative Ministry, MoF in discussion to increase allocation to SMEs

Entrepreneur and Cooperative Ministry, MoF in discussion to increase allocation to SMEs

The Edge Markets
July 20, 2020 14:48 pm +08

KUALA LUMPUR (July 20): The Ministry of Entrepreneur and Cooperative Development and the Ministry of Finance (MoF) are in discussion to increase funds for TEKUN Nasional to channel additional assistance to small and medium enterprises (SMEs) affected by Covid-19.

Entrepreneur and Cooperatives Development Minister Datuk Seri Dr Wan Junaidi Tuanku Jaafar said the results of the discussion will be known within one to two weeks.

“Actually, the allocation for TEKUN has its limitations and such assistance is also made by Bank Simpanan Nasional.

“However, I have discussed with the Minister of Finance to increase the contribution to TEKUN so that we can contribute to the SMEs,” he added.

Wan Junaidi said this when answering additional questions from Akmal Nasrullah Mohd Nasir (PH-Johor Bahru) in the Dewan Rakyat today on SMEs that did not receive the Prihatin Special Grant of RM3,000.

Wan Junaidi said the ministry also intended to create alternative financing systems such as crowdfunding and venture capital for entrepreneurs to reduce their dependence on bank financing.

“… nowadays many companies in Malaysia are too dependent on banking institutions with only 5% of them have private funds and their friends,” he added.

Wan Junaidi said the Ministry of Entrepreneur Development and Cooperatives had expanded its involvement to help low-income households (B40).

“I have instructed the ministry to conduct a study, especially on the micro and also informal SMEs, so that these informal parties amounting to more than one million throughout the country are formalised and assistance can be channelled and advice can be given to them,” he added.