An increase in the grant allocated under the iTekad social finance programme would go a long way in helping more B40 groups to embark on small and medium size businesses.
Small and Medium Enterprises Association (SAMENTA) National President Datuk William Ng said it would also help reduce the high failure rate among them witnessed in the country continuously.
“By actively engaging these traders, providing business guidance and where necessary, micro-loans and startup grants, we will be able to minimise the failure rate and ensure more petty traders can survive and thrive,” he told Bernama today.
Yesterday, Prime Minister Datuk Seri Anwar Ibrahim announced that the government would increase its grant allocation for the iTekad social finance programme by RM6 million to assist micro, small and medium enterprises (MSMEs), especially those from the B40 group.
Anwar said this would bring the overall iTekad aid for this year to RM10 million, up from the RM4 million allocated in Budget 2023.
iTekad is a patron programme created by BNM with the aim of helping low-income micro-entrepreneurs strengthen financial management and business intelligence towards generating continuous income.
Each iTekad programme combines the provision of business assets financed by social finance instruments -- including donations, social impact investments, zakat and cash waqf -- with microfinance, along with structured financial and business training.
Meanwhile, Northern Corridor Implementation Authority (NCIA) chief executive Mohamad Haris Kader Sultan said the initiative will open up opportunities for additional financing to micro, small and medium enterprises, especially the B40 group which is the target group for human capital development in the Northern Corridor Economic Region (NCER).
He added that iTekad will formalise the financial assistance initiatives offered by NCIA through the “EntrepreneurNCER” programme to assist MSMEs to expand and broaden their marketability as a means to support the industry’s network and cater for the ecosystem of the industry throughout the NCER.
Malaysia Bumiputera Contractors Association (PKBN) council member Sopiah Sudah said the initiatives carried out by the government will certainly assist contractors, especially those who are newcomers to the industry.
"New entrepreneurs need an injection of financial assistance to expand their business and therefore the initiative and efforts introduced by the government will be a big help to them at a time when the economic status remains uncertain," she said.
The announcement is a big relief for the community of petty traders, especially to Norharizan Hassan, 44, from Kuala Terengganu who runs a restaurant, as the additional allocation would enable entrepreneurs like her to overcome their financial burden in a small way.
“With the current economic uncertainty, many small traders are facing problems to source for financing and capital due to reduced sales and clients. The iTekad initiative gives entrepreneurs and petty traders a wider option to seek loans or financing, based on their status and capabilities," she said.
Trader Rohaizi Yusof, 45, suggested that the government simplify the terms and conditions for financial assistance or loans, especially for those who do not have income tax statements or fixed income because in small businesses, the profit margin is small while some are only able to break-even.
A wedding planner and boutique owner in Kuantan, Pahang, Zaliman Jusoh, 50, said the promotion and information about assistance provided by the government and related agencies, including iTekad must reach the target group for better understanding.
“I also hope the moratorium period for recipients will be given due consideration to ensure traders have enough time to strengthen their income and financial status before the repayment period starts,” he said.
Source: BERNAMA News Agency
