Govt to allocate RM375 mil to implement SME investment partner programme

KUALA LUMPUR: To accelerate the participation of small and medium enterprises (SMEs) in the country's economic activity, the government has proposed the implementation of the SME Investment Partner.
Under the programme, RM375 million would be provided for five years, said Prime Minister Datuk Seri Najib Abdul Razak in announcing the 2015 Budget in the Dewan Rakyat today.
He said SMEs would be given financial assistance in the form of loans, equity or both, particularly at the start-up stage.
"From the RM375 million, RM250 million will be coming from the SME Bank and RM125 million from private investors.
"In addition, RM10 million will be allocated for the Business Accelerator Programme under SME Corp," he said.
Najib said to enhance the use of technology, automation and innovation in the development of SMEs, RM80 million would be allocated for a soft loan scheme for automation and modernisation of SMEs under the Malaysian Industrial Development Finance Bhd.
"Tekun has channelled loans totalling RM3.1 billion to nearly 300,000 borrowers with loan limits of between RM1,000 and RM100,000.
"In 2015, Tekun will provide additional funds of RM500 million," he said, adding that from the allocation, RM350 million would be given to Bumiputera entrepreneurs to provide financing to nearly 33,000 new borrowers.
Meanwhile, out of the allocation, Indian entrepreneurs, young professional women and armed forces veteran entrepreneurs development programme would each receive RM50 million.
To assist SME entrepreneurs from the Chinese community, Najib announced that the government would provide soft loans totalling RM50 million and RM30 million for hawkers and petty traders, respectively. – Bernama