Source: The Edge Daily.
Original news wire here.
Kuala Lumpur, November 5 – Bank Negara Malaysia (BNM) has launched a USD 56.5 million (RM200 million) Micro Enterprise Fund to increase access to micro financing for micro enterprises with viable businesses, in this current more challenging business environment.
“Given that a significant percentage of SMEs in Malaysia are micro enterprises, adequate access to financing for this segment of businesses is vital so as to enable them to contribute to the economic development of the nation,” the central bank said in a statement yesterday.
The increased access to micro financing facility is part of several pre-emptive measures announced by Deputy Prime Minister and Finance Minister Datuk Seri Najib Razak to boost the economy.
Apart from that, the government had also allocated a USD 28.2 million (RM100 million) revolving capital for the urban micro financing revolving programme, which will come under Amanah Ikhtiar Malaysia. Since its launch early this year, the programme has lent out over USD 141,000 (RM 500,000) to nearly 200 borrowers.
BNM said it would channel the Micro Enterprise Fund to micro enterprises through the existing Pembiayaan Mikro scheme, which is currently participated by nine financial institutions.
It said the Pembiayaan Mikro scheme had successfully benefited more than 40,000 micro enterprises since it was introduced in 2006, for which viable businesses could obtain financing up to USD 14,000 (RM50,000) for working capital or for capital expenditure.
BNM said micro financing under the scheme required no collateral and minimal documentation. Pembiayaan Mikro is offered at more than 2,600 branches and affiliates/agents of the participating financial institutions that display the National Microfinance logo.
For further details, micro enterprises can approach any of the branches and affiliates/agents of the participating financial institutions that display the National Microfinance logo, or contact BNMTELELINK at 1-300-88-5465.
The participating institutions are Alliance Bank Malaysia Bhd, AmBank (M) Bhd, CIMB Bank Bhd, EONCAP Islamic Bank Bhd, Public Bank Bhd, United Overseas Bank (Malaysia) Bhd, Bank Kerjasama Rakyat Malaysia Bhd, Bank Pertanian Malaysia Berhad (Agrobank) and Bank Simpanan Nasional.
The National SME Development Council defines micro enterprises as those in the manufacturing and related services sectors with less than USD 71,000 (RM250,000) annual sales turnover, or fewer than five full-time employees, and those in the primary agriculture and services sectors with less than USD 56,000 (RM200,000) annual turnover or fewer than five full-time employees.
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