3,747 rural entrepreneurs benefit from RM376m funding

KUALA LUMPUR: A total of 3,747 rural Bumiputera entrepreneurs received funding totalling RM376 million from the Rural Economic Financing Scheme (SPED) between 2001 and Sept 30 this year, the Dewan Rakyat was told today.

Deputy Rural and Regional Development Minister Datuk Alexander Nanta Linggi said the scheme, which was launched in 2001, had helped rural entrepreneurs to increase their average income by 20%.

"The scope of SPED funding covers the purchase of machinery or equipment and capital to modify or upgrade the business premises. We appointed two banks, Bank Rakyat and SME Bank, to manage the scheme," he said when replying to a question from Datuk Mohd Fasiah Mohd Fakeh (BN-Sabak Bernam).

Nanta said SPED did not impose collateral or guarantor requirement and the service charge was based on the balance of loan during the period of suspension of repayments for six months.

He also said that the ministry encouraged the entrepreneurs to use high technology and innovative machines to increase production.

"The ministry also organises various programmes such as the Rural Entrepreneurs Carnival, Malaysian Agriculture, Horticulture and Agro-Tourism (MAHA) Exhibition, Halal Fiesta Malaysia (HALFEST) and various trade expos for the entrepreneurs to participate in to get exposure to market their products to a larger market," he said. — Bernama