Government’s financial assistance boost SMEs

Government’s assurance of the financial assistance availability was welcomed warmly by small and medium-scale enterprises (SMEs). SMEs said that the assistance helps to increase consumers’ spending trend.
According to SME Association of Malaysia, increment of consumer purchasing would have an impact on the domestic economy.


Secretary-general Lee Teck Meng said, “We were expecting the government to provide quick funds to inject into the domestic market. There is need for a quick reaction to awaken the market. “We were expecting something more immediate.


“Those segments need measures that will have direct impact.” Lee also added that the RM60 billion funds allocated for SMEs were meant for medium- to long-term measures. Lee however did not address the slowdown situation faced by certain sectors of the SMEs besides stating that retail, hardware and food industry that covers consumer segments faced difficulties due to the slowing economy.


Government has allocated a stimulus package up to RM5 billion Working Capital Guarantee Scheme in order to assist working capital to small companies that owns shareholder equity below RM20 million. Government states that the maximum loan is up to RM10 million with a maximum repayment for a span of five years. The Malay Chamber of Commerce Malaysia (DPMM) hopes that the package enables SMEs to obtain funds conveniently from the financial institutions.


While DPMM deputy president Datuk Muhammad Muhiyuddin Abdullah said banks should collaborate with the government to grant financing promptly. He added that government's RM5 billion Industry Restructuring Guarantee Fund (IRGF) Scheme for loans helps to enhance productivity and value-added activities. Muhiyuddin said, “This will help many more companies initiate cost-saving measures vital in today's challenging economic environment.”