Govt to hold talks on loan terms

17 Jun 2019 / 22:09 H.

PUTRAJAYA: The Government will hold discussion to refine the terms and conditions of loans imposed on borrowers, especially those who apply from the Infra Tourism Fund and Tourism Fund.

Tourism, Arts and Culture Minister Datuk Mohamaddin Ketapi said this is due to complaints by applicants, who are generally tourism industry entrepreneurs, who failed to obtain loans from the banks involved.

The two funds were placed under SME Bank and Development Bank.

“I was informed that there were many applicants but only a few were approved,“ he said in a statement today.

“Many of them were said to be unable to meet the terms set by the lender making it difficult for borrowers, especially bumiputras, to obtain loans.”

Mohamaddin said the purpose of the fund was to assist and provide entrepreneurial experience to bumiputra and non-bumiputra entrepreneurs but the loan terms were making it difficult.

He said he will meet Finance Minister Lim Guan Eng soon to discuss on the matter.

“If possible, we want to loosen the terms because action can only be decided by the Finance Ministry and the National Bank.

“If these conditions are not loosened, I am worried that bumiputra entrepreneurs in particular will not be able to enjoy the government’s initiative and this would thwart the entrepreneur’s efforts to grow or succeed in their business.” he said.

Mohamaddin added the government had grant RM500 million to develop the tourism industry among small and medium entrepreneurs in order to contribute to national income through the Infra Tourism Fund, under the SME Bank.

Meanwhile, the government has also allocated more than RM500 million to help entrepreneurs who want to develop tourism products such as hotels, chalets, resorts and other accommodation facilities.

The tourism industry has generated an increase in tourist spending of RM21.4 billion for the first quarter of this year compared to just RM18.3 billion for the same period last year.

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