BUDGET 2018 : Tekun Nasional gets higher allocation

PETALING JAYA: Despite several failed financing schemes that has led to RM209 million losses by end-2015, the government raised its allocation for National Entrepreneur Group Economic Fund (Tekun Nasional) to RM500 million under Budget 2018, from RM300 million in the previous Budget.
During the tabling of 2018 Budget today, Prime Minister Datuk Seri Najib Razak said the RM500 million is allocated to assist small-scale entrepreneurs to develop their businesses, and is the largest allocation that was given to the finance provider agency since its establishment in 1998.
Through the fund, Najib said RM50 million is allocated for the Indian Community Entrepreneur Development Scheme (SPUMI), benefiting over 35,000 of entrepreneurs.
Since 1998, Tekun has through its schemes channelled RM4.72 billion to some 388,233 entrepreneurs in the country.
According to the 2016 Auditor-General's report, Tekun's financial performance was "less than satisfactory" for the year 2013 to 2015 due to massive debt to the government, and a total of RM410.61 million bad debt was written off.
The report also found that Tekun's various programmes had failed to achieve its goals due to poor management and lack of research.
It was reported that from 1998 to June 2016, Tekun received a RM1.86 billion loan from the Finance Ministry and another RM670 million grant from the Agriculture Ministry for the purposes of the Economic Stimulus Package as well as to aid flood victims and for the Young Indian Entrepreneurs Development Scheme.
Tekun is a financial services agency for micro and small entrepreneurs under the Ministry of Agriculture & Agro-based Industry.