PETALING JAYA: Small and medium enterprises (SME) are urging the government to simplify and increase transparency in the application process for RM44bil in loans and funding guarantees. In his Budget 2024 announcement, Prime Minister Datuk Seri Anwar Ibrahim stated that RM44bil in loans and financing guarantees will be provided for micro, small, and medium enterprises (MSMEs). To address the difficulties faced by micro and small business operators in securing financing approval, SME Association president Ding Hong Sing suggested that the review and approval of financing loans for SMEs be given to Malaysian Industrial Development Finance Bhd (MIDF). This move is crucial for supporting small and medium enterprises effectively.
Ding Hong Sing stressed the importance of a unified approach to processing loans for micro and small businesses through MIDF. He emphasized that aiding SMEs to revitalize the national economy and expand internationally is critical for the country’s economic growth.
Under the revised Budget for 2023, the government pledged to provide a range of financing facilities and guarantees totaling RM40bil. These funding initiatives were intended to be facilitated by various institutions such as Bank Negara Malaysia (BNM), Bank Simpanan Nasional (BSN), and Tabung Ekonomi Kumpulan Usaha Niaga (Tekun). However, Ding Hong Sing believes that this approach is unfair to SMEs and suggests that levy collection should be utilized for SMEs to train their own workers.
Secretary-general of the Small and Medium Enterprises Association (Samenta), Yeoh Seng Hooi, called for increased support for first-time SME exporters. He believes that the RM5,000 grant for digitalization and automation is insufficient and proposed raising the grant amount to at least RM50,000, focusing on small enterprises while excluding medium-sized entrepreneurs. Yeoh emphasized the importance of ensuring that the grant approval process remains free from any “cartel” influences.
Yeoh also highlighted the significance of domestic demand for SMEs, especially with the approaching implementation of the Government Procurement Bill. He urged the government to foster transparent e-tendering processes with preferences for targeted companies requiring support, all while minimizing costs for SMEs.
Datuk Koong Lin Loong, the SME committee chairman of the Associated Chinese Chambers of Commerce and Industry of Malaysia (ACCCIM), expressed the view that the RM5,000 grant is insufficient to assist businesses. He recommended increasing it to RM15,000 and also called for the reintroduction of export subsidies for SMEs to facilitate their products’ entry into the international market. Koong emphasized that only a small percentage of Malaysia’s exports originate from SMEs and stressed the need for comprehensive export support to ensure long-term sustainability.
