KUALA LUMPUR: Bank Simpanan Nasional’s (BSN) microfinancing loan facilities of RM1.4bil to hawkers and small traders under Budget 2024 is aimed at preventing them from resorting to “ah long” (loan sharks).
The Dean of the School of Business and Economics at Universiti Putra Malaysia, Prof Dr Bany Ariffin Amin Noordin, explained that hawkers often turn to illegal money lenders because they require capital to start or expand their business. In many cases, these hawkers face difficulties in meeting the loan conditions imposed by banks due to lack of a banking record, low income, and limited education.
As a result, they opt for the services of loan sharks. Choosing this path may grant them an easy and fast loan process, but it exposes them to high risks. Conversely, BSN’s microfinancing loan facility offers a two-fold solution, enabling hawkers to easily start their businesses while safeguarding them from falling prey to loan sharks,” Bernama reported, quoting Prof Dr Bany Ariffin.
Prof Dr Bany Ariffin also stated that there has been a significant increase in the number of hawkers, a trend attributed to people seeking alternative income sources after being laid off. He further highlighted that the RM40 million allocation for the implementation of the Shop Malaysia Online Programme, specifically benefiting small traders in the food sector, eliminates the need for rental premises, reducing business costs.
“Ten years ago, it was necessary to rent a shop to conduct business, incurring additional expenses. However, with the convenience of technology, having a physical space is no longer essential as businesses can be operated from home. This initiative is aligned with the gig economy, directly empowering the family economy and enhancing community living standards,” said Assoc Prof Dr Azwan Abdullah from the Institute for Research and Poverty Management at Universiti Malaysia Kelantan.
