MEDC disburses RM5.19 billion financing to 292,530 SME entrepreneurs and cooperatives: Ewon

30 November 2023

By Wartawan Nabalu News

KUALA LUMPUR: The Ministry of Entrepreneur Development and Cooperatives (MEDC), through its agencies, has successfully disbursed financing amounting to RM5.19 billion to 292,530 micro, small, and medium-sized enterprises (PMKS) entrepreneurs and cooperatives this year.

Minister Datuk Ewon Benedick stated that MEDC has also produced 83,361 new PMKS entrepreneurs this year, with the majority receiving financing from Amanah Ikhtiar Malaysia (AIM), Tekun Nasional, Bank Rakyat, SME Corp, Pernas, and the National Entrepreneurship Institute (INSKEN).

He added that this is in addition to the existing 1.17 million PMKS entrepreneurs in the country.

"This year, the ministry has introduced several new programmes and initiatives to further develop entrepreneurs in the country," he said.

"Among them is the Tamu Entrepreneur Financing Scheme (SPUT), specifically for small traders selling at weekly markets and night markets in Sabah and Sarawak."

"We plan to expand SPUT financing nationwide to provide opportunities for more small traders to access this financing."

"The ministry, through SME Corp, has also launched the Micro MADANI Strengthening Programme with a fund of RM100 million, benefiting 20,697 PMKS entrepreneurs," he added.

Ewon made these remarks during a live interview on Selamat Pagi Malaysia on TV1, in conjunction with the One Year with the Madani Government:MEDC, at Angkasapuri RTM, today.

He further stated that MEDC has developed action plans, policies, and guidelines related to the development of entrepreneurs and cooperatives.

"The ministry has launched the Small Traders and Hawkers Development Plan (2023-2027), the National Cooperative Policy 2023 (DAKOM 2030), and the Informal Entrepreneur Formalization Plan."

"In addition, we continue to support franchise businesses through the Be Your Own Boss (BYOB) and Business in Transformation (BIT) projects, providing financing worth RM13.69 million to 48 franchise entrepreneurs this year."

"To promote exports, the Business Exports Programme (BEP) under SME Bank and the Bumiputera Export Incentive Programme (GEB) by SME Corp have been implemented," he said.

Ewon also highlighted that under the MADANI Economic Framework, Prime Minister Datuk Seri Anwar Ibrahim has placed great emphasis on MEDC to internationalise the country's SME industry and make it a regional champion.

"Based on official data released by the Department of Statistics Malaysia (DOSM), as of December 2022, there were 1.17 million registered PMKS in Malaysia, with 78 percent being micro enterprises."

"Therefore, we need to focus on building micro and medium-sized enterprises to make a significant impact in achieving the Prime Minister's vision," he said.

In this regard, Ewon stated that the ministry will increase the participation of SMEs and cooperatives in high-impact industries (HGHV) for development in the domestic supply chain and global value chain (GVC).

"Among the identified high-impact industries are Smart Agriculture, Aerospace, Electrical & Electronic Medical Devices, Automotive, Halal Industry, Oil & Gas, and Biotechnology," he said.

To prepare the country's PMKS industry for internationalisation, Ewon mentioned that his ministry is providing guidelines for compliance with environmental, social, and governance (ESG) practices for the relevant industries, which will be launched soon.

"This is because major world markets such as the United States, Europe, Japan, and Australia require ESG compliance as an important criterion for the entry of any product or service," he concluded.