MEDAC lauds Budget 2024 that provides loan facilities and financing guarantees for MSMEs

14 October 2023

By Wartawan Nabalu News

PUTRAJAYA: The Ministry of Entrepreneur Development and Cooperatives (MEDAC) welcomes the presentation of Budget 2024, which provides loan facilities and financing guarantees for the benefit of Micro, Small, and Medium Enterprises (MSMEs) entrepreneurs with a total value of RM44 billion.

According to MEDAC Minister Datuk Ewon the Budget 2024 presented by the Prime Minister translates the country's economic reform agenda, particularly related to national revenue sources and subsidy targeting. Various initiatives highlight the MADANI concept, which is the core of the government's leadership and service.

The total value of RM44 billion in guarantees and financing for MSMEs is higher than the Budget 2023, indicating the high commitment of the Prime Minister and the government in elevating MSMEs as part of the regional economic leaders.

Some of the incentives that can be utilised through MEDAC and its agencies in Budget 2024 include Incentives for start-up companies, including Bumiputera Small and Medium Enterprises (SMEs), to venture into High Growth High Value (HGHV) areas such as the digital economy, aerospace technology, as well as electronics and electrical (E&E).

It will also go towards special programmes for halal SMEs under the integrated halal platform that offer access to special funds and capacity-building programs.

Besides that, small loans for micro-entrepreneurs and small traders amounting to RM330 million under TEKUN to provide financing facilities to small traders such as batik and craft entrepreneurs, Orang Asli entrepreneurs, as well as Sabah and Sarawak Bumiputera.

RM30 millions is specifically allocated to finance businesses initiated by the Indian community while RM720 million is allocated to encourage women and youth to venture into business.

There is financing of RM100 million under Amanah Ikhtiar Malaysia (AIM) to eradicate poverty among borrowers, especially single mothers and the poor, through the provision of small-scale business capital.

RM100 million financing fund is provided to the cooperative movement through the Revolving Capital Fund, Malaysian Cooperative Commission (SKM), to assist more cooperatives.

It will go towards upgrading of business facilities by the Urban Development Corporation (UDA) to assist entrepreneurs in enhancing their business potential.

There will be provision of special loans and guarantees for Bumiputera MSME entrepreneurs to enhance their capacity and competitiveness, including providing exploration capital financing to Bumiputera start-up companies.

An allocation of RM20 million to continue the Bumiputera Youth Entrepreneurship Program (TUBE) under SME Corp. Malaysia.

An allocation of RM10 million will go towards financing the TEKUN Belia Mobilepreneur Scheme such as capital for young people involved in delivery services using motorcycles.

PROTÉGÉ-RTW, which is a job training placement program in collaboration with government contract recipient companies, will be expanded to include veterans of the Malaysian Armed Forces (ATM) under contracts signed by the Ministry of Defense. Each government programme will have a special quota for veterans, such as entrepreneurship programmes, training, employment, and financing facilities.

There will be extension of the tax exemption application period for all social enterprise (SE) income until 2025.

Ewon also expressed gratitude to the Prime Minister for increasing the allocation for MEDAC. He added that all members of MEDAC are fully committed to ensuring that the ministry's budget reaches the target groups and fulfills its goals.

MEDAC believes that Budget 2024, with the theme of Economic Reform, Enriching the People, focusing on best governance for service agility, economic restructuring for growth, and improving the people's standard of living, will develop socioeconomics and provide effective solutions to assist entrepreneurs and cooperatives. This will contribute to the success of Malaysia's journey towards achieving a MADANI Economy.