Tekun Provides The Lifeline For Indian Entrepreneurs

KUALA LUMPUR (Bernama) -- M.Jayaseelan had been working as a goldsmith at a Chinese company since 1989, and his dream of venturing on his own had been hindered because of the lack of capital.

Yet all that changed four months ago when he sought a loan from the National Entrepreneur Group Economic Fund (Tekun Nasional) to purchase new jewellery making tools and equipment to set off on his own.

"I saw an advertisement of the Special Secretariat for the Empowerment of Indian Entrepreneurs (SEED). I applied through the Indian Entrepreneur Development Scheme (SPUMI) and my loan was approved," said the proud owner of Kamalam Gems and Jewels to Bernama.

Jayaseelan, like the thousands of Indians in the country face an uphill task in starting or expanding business as the avenues to raise capital is extremely limited.

This is where Prime Minister Datuk Seri Najib Tun Razak stepped in with funds RM180 million, dedicated to Indian traders and businessmen through various organisations.


MORE INDIANS BENEFITS FROM TEKUN

Apart from Jayaseelan, thousands of Indian traders and businessmen have benefited from this assistance including Jeya Kumar Arumugam of Batang Berjuntai, who until recently was at his wits end in seeking capital to expand his 25-year old cattle business.

He needed about RM40,000 and over the years all his loan application to banks had been rejected though the business had provided him returns.

"Through RTM's Minnal FM Radio Talk Show, I came to know about this Tekun loan scheme. I decided to apply and it was approved within weeks. I am very happy and grateful for the financial assistance," he said.

As for Suriya Raj Raju, who has been selling toys in night market for the past seven years, he took a second Tekun loan to further develop his business.

"I feel very satisfied because the process is simple and straightforward. I want to thank Najib, SEED and Tekun Nasional for helping me to make my dream come true," he said, adding that he had received his first loan of RM10,000 from Tekun in 2011 and had repaid the amount.

N.Balasandran of Nibash Trading Enterprise has been operating a launderette in Banting with his children for more than three years now and the TEKUN loan facilitated by SEED has been helpful.

Grocery shop owner P. Ravindran, 42, from Taman Pelangi in Bukit Tengah, Penang said he was happy to receive a RM12,000 loan from Tekun Nasional which he would use to buy an industrial refrigerator.

Another recipient, V. Prabawathi, 32, from George Town, said she plans to use the RM7,000 loan that she received as down payment to buy a digital printing machine for her print shop.

Dental technical support assistant Benedict Soosai also received a loan of RM7,000 to upgrade his business. The 37-year-old said he was grateful for the loan which would used to buy items related to his trade.

TEKUN NASIONAL COMMITTED TO PRODUCE MORE INDIAN ENTREPRENEURS

The list goes on and these are among the 7,112 Indian entrepreneurs who had received a total of RM79.28 million under Tekun Nasional-SPUMI loan from Jan 2008 to April 19, 2013.

SEED's Director Datuk Dr A.T.Kumarajah said the government has allocated a total of RM114.5 million for Indian entrepreneurs under Tekun Nasional-SPUMI scheme for the same period.

He said Tekun Nasional is committed to producing more Indian entrepreneurs to uplift the Indian community's socio-economic status.

"Najib announced a special allocation of RM50 million for Tekun under the 2013 Budget for the Indian entrepreneurs to expand their businesses. The allocation was an extension to the continuous measures taken by the government to help the Indian community," he explained.

NEW INITIATIVES INTRODUCED

Tekun Nasional's managing director and chief executive officer Datuk Abdul Rahim Hassan said the soft loans for eight strategic sectors introduced for Indian entrepreneurs were; floral trade, sewing, hair saloons, provision and textile shops, as well as transport business, wedding planners and franchise businesses.

"What is important is not the total amount of loans disbursed, but how many from the Indian community can be helped," he said.

Abdul Rahim said Tekun Nasional's loans for Indian youths were channeled through SPUMI, an initiative under the cooperation with the Economic Planning Unit and Yayasan Strategik Sosial (YSS), an arm of the MIC.

"In ensuring greater outreach, the age limit for loans have been increased from 55 to 65 years, a special funding scheme for start-ups even less than six months old, and special scheme for graduates have been introduced," he said.

Abdul Rahim added that for those who want to start a small company could apply for a RM5,000 loan even if the company is not registered under the Companies Commission of Malaysia.

While, full-time entrepreneurs can apply for a loan of up to RM50,000 and based on performance they can submit a second application for a RM100,000 loan, he said.

MIC President Datuk Seri G.Palanivel, who was instrumental in assisting and advising SEED, said the number of applicants and the approval rates have increased 3.5 times since the inception of SEED.

LOAN SCHEME FOR INDIANS TO OWN TAXIS

Another group that benefited from the government's generosity is the community of Indian taxi drivers.

On April 18 this year, the first batch of 76 taxi drivers received loans amounting to RM827,500 to help purchase their own taxis.

One of the 76 taxi drivers who received the loan, T. Muniandy, 40, from Puchong, said he was delighted over the opportunity to finally buy his own taxi.

"I have three children, all under 12, and I am the sole breadwinner. With this loan, hopefully I can provide a better future for them," said Muniandy, who has been driving taxi for nine years.

While, M.Muniandy, 55, of Taiping said he has been driving a leased taxi for many years. With this loan, he will be able to purchase his own taxi. "

Thank You to Najib, SEED and Tekun for understanding our needs," he said.

Dr Kumarajah said some 12,500 Indian taxi drivers, nationwide, stand to benefit from the special loan scheme by SEED under Tekun Nasional that would enable them to ply their trade using their own vehicles.

(Source: Bernama)