KUALA LUMPUR: The government will continue working to ensure financial institutions process financing applications for micro, small and medium enterprises (MSMEs) more quickly and prudently to support the sector’s sustainability, the Dewan Rakyat was told today.
Prime Minister Datuk Seri Anwar Ibrahim, who is also Finance Minister, said substantial government allocations to strengthen MSMEs would be meaningless if businesses continued to face difficulties securing financing.
He said while private banks retained authority over loan approvals, Bank Negara Malaysia (BNM) was responsible for ensuring financial institutions complied with key policies and that financing reached eligible entrepreneurs through effective oversight.
“There is little point in allocating substantial funds if businesses still struggle to obtain loans. That is why we have introduced several measures, particularly for banks serving small enterprises.
“We are also improving approval timelines. Financing under the National Entrepreneurial Group Economic Fund (TEKUN Nasional), for example, can now be disbursed within five days,” he said in reply to Datuk Seri Takiyuddin Hassan (PN-Kota Bharu) during the Minister’s Question Time in the Dewan Rakyat today.
Anwar said Bank Rakyat had reduced its financing approval period for micro-enterprises to six working days, while SME Bank had capped approval times at no more than 15 working days for financing between RM100,000 and RM1 million.
Responding to claims that some banks imposed stringent financing conditions on transactions involving certain countries, Anwar acknowledged that international sanctions had previously complicated trade with Iran and Russia.
He said unclear regulations, coupled with sanctions imposed by the United States and several other countries, had made Malaysia’s trade with Iran and Russia particularly challenging.
“However, the situation has changed. The government has held discussions with Iran and Russia to simplify payment arrangements, while also deciding to expand trade and investment with both countries despite the heavy sanctions they face.
“During my meeting with Russian President Vladimir Putin last month, we discussed several measures to facilitate trade and investment between our countries. For example, issues that had prevented the resumption of direct flights from Russia to Malaysia due to various sanctions are now being resolved,” he said.
Replying to a supplementary question from Syed Saddiq Syed Abdul Rahman (MUDA-Muar) on expanding Amanah Ikhtiar Malaysia (AIM) financing to men and youths, Anwar said the scheme was not restricted to women, although about 98 per cent of its borrowers were female.
He said the government had increased AIM’s loan allocation in the previous Budget and agreed to expand financing for eligible male applicants.
At the same time, he said AIM would be encouraged to place greater emphasis on young entrepreneurs by offering financing tailored to their needs, supported by stronger management mechanisms to ensure effective loan repayments.
Earlier, Anwar said the government had allocated more than RM15 billion in financing facilities and loan guarantees to support MSMEs, including RM5 billion earmarked for Bumiputera entrepreneurs.
He added that since May, BNM had approved nearly RM1 billion in financing under the SME Stabilisation Relief Facility, benefiting more than 1,500 MSMEs, while the Business Financing Guarantee Scheme approved RM4.9 billion in financing for more than 6,000 MSMEs in the first half of this year. – BERNAMA
