KUALA
LUMPUR, June 10 — The government will be setting aside RM180 million in
the form of various loans for the betterment of local Indian
entrepreneurs, Prime Minister Datuk Seri Najib Razak announced
yesterday.
From the RM180 million, he said, RM150 million would be reserved
through RM10 million from each of the participating 13 banks under the
Budget 2012 SME Financing Fund, RM10 million SME soft loans from
Malaysian Industrial Development Finance (MIDF), RM5 million under the
Business Accelerator Programme and RM5 million under the Enrichment and
Enhancement Programme meant for business start-ups and microenterprises.
In addition to the RM150 million, Najib
(picture)
said TEKUN Nasional would set aside RM30 million to provide microcredit
loans to young Indian entrepreneurs under the Young Indian Entrepreneurs
Development Scheme (SPUMI).
“Through this dedicated RM180 million fund for the Indian community,
the government will manage to assist more Indian entrepreneurs to obtain
loans, to start up or expand their businesses.
“In the Malaysian Indian Economic Conference (MIEC) blueprint
memorandum discussed with me recently, there are three major issues that
Indian businesses feel are preventing them from realising their full
potential.
“The first is a legacy issue of negative credit history including
bankruptcy and blacklisting. The second involves the various challenges
faced in obtaining adequate and timely credit. And the third is for
Indians to win contracts from government and government-linked companies
(GLCs),” the prime minister said at the gala dinner organised in
conjunction with the MIEC in Seri Kembangan.
Najib said the government was committed to assist Indian
entrepreneurs to greater heights, and for the noble purpose, the
government was going to address the Indian public’s priorities in terms
of business opportunities in a threefold manner.
Other than the RM180 million in loans, Najib said the government
would go to the ground and register Indians who have been blacklisted or
made bankrupt over the next six months and then develop a fair and
responsible solution to the problems facing them.
The third initiative would be to ensure that more Indian companies be
upskilled and adequately qualified to bid for contracts dished out by
the government and government-linked companies (GLCs), as well as ensure
that a fair number of these qualified Indian contractors participate in
these contracts.
He said the government, via Bank Negara and the Credit Counselling
and Debt Management Agency (AKPK), would partner with the MIEC to
provide advisory services to those who were blacklisted or bankrupt and
who wanted a second chance to achieve their aims and goals.
“This government-community partnership will have to organise a
nationwide roadshow in much the same way the MyDaftar documentation
initiative was implemented. The objective will be to gather precise
fact-based feedback from Indians who are blacklisted in various
locations throughout Malaysia.
“Once we have all the facts of this matter, we can clearly establish
the extent and parameters of this blacklisting-bankruptcy problem. Only
from here, can we develop policy measures to alleviate the situation of
the people in the community affected by it.
“In this regard, we will also seriously engage with commercial banks
so that they too can contribute to helping people clear their negative
credit history and therefore, get on with their lives,” he said, adding
that he was happy to note that the government had already embarked on
this process.
Currently, about 100 people the MIEC had already identified and was already assisting to clear their names.
To address the lack of awareness among Indian business community on
what had to be done prior to applying for loans and grants, Najib said
the government had already funded the MIEC to set up a permanent
secretariat to advise and assist Indian businessmen and women in
submitting complete and credible proposals to banks and other financial
institutions.
He said the secretariat could work with the Business Advisory Centre
under the Ministry of International Trade and Industry in providing
business advisory, guidance and counselling.
“Our intervention will not just stop there, in six months from now, I
want a full report from the MIEC secretariat detailing how many
complete applications made to banks and agencies, and how many have been
successfully processed and approved.
“Based on this information, the government will take further actions
to ensure that credit facilities are made available to all Malaysians
who are creditworthy and who have fulfilled all the objective criteria
spelled out by banks and other financial organisations,” the prime
minister said.
Najib said the MIEC secretariat would also play a role to assist
enough Indian contractors to upskill and meet all entry standards set by
government, in order for the contractors to capture some contracts
catered by the government and GLCs.
“With regards to GLCs, I understand that Khazanah Nasional Bhd and
Permodalan Nasional Bhd will work with the MIEC secretariat and begin to
take pro-active steps to ensure that more Indian companies participate
in the GLC vendor development programmes,” he said.
The government, Najib said would work directly with the MIEC
secretariat to know the facts and figures in terms of numbers of
successful bids and of other relevant data, and based on the data, the
policy makers would be able to make the right policy decisions wherever
necessary to ensure that enough opportunities come the way of Indian
contractors.
“Related to this, I would also encourage the many private companies
that drive our economy to also take pro-active steps to increase Indian
participation in their companies’ tenders and outsourcing,” he said. —
Bernama
(Source: The Malaysian Insider Website)