Tap RM1.2bil Facilities , Say PM

KUALA LUMPUR: Small and medium enterprises (SMEs) should make full use of the RM1.2bil financing facilities set up to help them weather these hard times, Datuk Seri Abdullah Ahmad Badawi said.

The Prime Minister said the Government wanted SMEs in the country to expand so that they account for a higher business volume.

“Almost 90% of the companies in the country are SMEs, but their business volume cannot match those of bigger companies,” he said.

Abdullah said Bank Negara had set up two financing facilities of up to RM1.2bil to help SMEs and said entrepreneurs should make use of the funds to expand their business.

The two facilities are the RM700mil SME Assistance Facility and the RM500mil SME Modernisation Facility.

The SME Assistance Facility will assist viable SMEs facing financial difficulties to manage temporary cash-flow problems so that they can continue operations and preserve employment.

The SME Modernisation Facility will provide financing to SMEs to modernise operations.

“The fund should be used to improve productivity by acquiring more efficient and better machineries,” he said.

Abdullah was speaking at the launch of the international trade exhibition Enterprise Asia, which was organised by the Malay Chamber of Commerce Malaysia.

Entrepreneur and Cooperative Development Minister Datuk Noh Omar said the exhibition was a good platform for local entrepreneurs to establish strategic alliances and partnerships to expand their horizon with greater confidence.

“I hope entrepreneurs will take this chance to promote and market local products and services to prospective clients from all over the world,” he said.