'Sizeable sum' for SMEs sought

"We will also be seeking a sizeable sum of funds from the Treasury in our proposal to be submitted tomorrow," he told a media briefing after chairing a one-day Bumiputera Entrepreneur convention in Kuala Lumpur yesterday.

He declined to mention the amount but participants at the closed-door dialogue session said it could be close to RM2 billion.

The government will announce the second stimulus package on March 10.

"We are seeking special attention for SMEs because they contribute to a broad segment of the economy and given the challenging environment, they would be affected," he said.

Muhyiddin said his ministry would also propose strategies to generate businesses for 500,000 SMEs in the country which employ six million people.

Bank Negara Malaysia recently announced a RM2 billion SME Assistance Guarantee Scheme (SAGS) to ensure that viable SMEs hurt by the economic slowdown continue to have access to financing.

Eligible SMEs can obtain financing of up to RM500,000 per SME under this scheme for tenures of up to five years at any commercial and Islamic bank, SME Bank, Agrobank, Bank Rakyat, EXIM Bank and Bank Simpanan Nasional.

"Bumiputera entrepreneurs must increase their exposure and grab opportunities made available internationally through the Asean Free Trade Area, free trade agreements and cooperation with the Organisation of the Islamic Conference," Muhyiddin said.

The Malaysia External Trade Development Corp, through its market development grant (MDG) to assist export promotion activities, has disbursed RM13.57 million to more than 1,500 SMEs last year.

Muhyiddin pointed out that of all the financial schemes provided by the Small and Medium Industries Development Corp, an agency under MITI, the MDG is one of the least popular among Bumiputera entrepreneurs.

Source: http://www.btimes.com.my/Current_News/BTIMES/articles/rup1700/Article/index_html