KUALA LUMPUR, May 14 — The Madani Government will disburse more than RM5 billion through microfinancing facilities this year, to the benefit of over 400,000 micro-entrepreneurs nationwide via loans of up to RM100,000.
The Finance Ministry (MOF) in a statement today said various financing schemes will be activated under agencies and institutions such as Amanah Ikhtiar Malaysia (AIM), Bank Simpanan Nasional (BSN), TEKUN Nasional, Majlis Amanah Rakyat (MARA), Agrobank, and Bank Rakyat.
For certain schemes, financing rates offered are as low as three per cent per annum.
Prime Minister Datuk Seri Anwar Ibrahim said in the same statement that the financing institutions have been told to ramp up outreach to as many petty traders, hawkers and micro-entrepreneurs as possible, particularly those facing capital constraints.
“The application process must be simplified, financing conditions should not be burdensome, and financing must be provided fairly and reasonably.
“The Madani Economy is grounded in the values of compassion, justice and equality. These microfinancing facilities must reach people seeking to earn a lawful income and build a more dignified life,” he said.
Anwar, who is also finance minister, said microfinancing facilities are targeted at groups including petty traders, night market hawkers, women, youth, gig workers, technical and vocational education and training (TVET) graduates, small contractors, padi farmers, and asnaf.
He said microfinancing facilities are separate from the newly announced financing facilities for micro, small, and medium enterprises (MSMEs), particularly the RM5 billion SME Special Relief Facility under Bank Negara Malaysia and the RM5 billion facility under Syarikat Jaminan Pembiayaan Perniagaan (SJPP).
“In total, more than RM15 billion in financing support has been made available to MSMEs this year,” Anwar said.
