Various financing opportunities offered by MEDAC
21 October 2023
KOTA KINABALU: The Ministry of Entrepreneur Development and Cooperative (MEDAC) has a range of financing options available for aspiring entrepreneurs.
During the presentation of the 2024 Budget by Prime Minister Datuk Seri Anwar Ibrahim last week, a substantial allocation of RM44 billion has been assigned to MEDAC to facilitate loan facilities and financing guarantees for Micro, Small, and Medium Enterprises (MSMEs) across the country.
MEDAC Minister Datuk Ewon Benedick, emphasised that these financing opportunities serve as a significant incentive for startup companies, including Bumiputera Small and Medium Enterprises (SMEs), to explore High Growth High Value (HGHV) sectors such as the digital economy, aerospace technology, electronics, and electrical (E&E) industries.
He shared this in his speech at the "Academic Potential Award Unlimited" (AngPAU) reception. His speech was delivered by Datuk Phillip Lasimbang, Chairman of Yayasan Bank Rakyat.
Ewon highlighted the availability of special programs tailored for halal SMEs through an integrated halal platform, providing access to special funds and capacity-building initiatives. A substantial portion of RM330 million has been allocated specifically for micro-entrepreneurs and small traders under the TEKUN program, which aims to offer financing facilities to individuals such as batik and craft entrepreneurs, Orang Asli entrepreneurs, as well as Bumiputera entrepreneurs in Sabah and Sarawak.
In a bid to support businesses run by the Indian community, RM30 million has been set aside, while RM720 million has been allocated to encourage the involvement of women and youth in entrepreneurial ventures.
Additionally, there is the RM100 million financing under the Amanah Ikhtiar Malaysia (AIM) programme to alleviate poverty, particularly among single mothers and underprivileged individuals, by providing capital for small businesses. Another RM100 million is designated for the cooperative movement through the Revolving Capital Fund, administered by the Malaysia Cooperative Commission (SKM), with the aim of supporting a wider range of cooperatives.
To sustain the Tunas Usahawan Belia Bumiputera (TUBE) Programme, an allocation of RM20 million has been granted under SME Corp. Malaysia. Moreover, RM10 million has been earmarked to fund the TEKUN Belia Mobilepreneur Scheme, which offers capital for young individuals engaged in delivery services using motorcycles.
The array of financing options provided by MEDAC fosters entrepreneurship and support to the growth of small businesses in various sectors. With these initiatives, aspiring entrepreneurs can pursue their business ambitions and contribute to the nation's economic development.