Miti approves RM1.6bil under syariah-compliant SME financing scheme

GEORGE TOWN: The International Trade and Industry Ministry (Miti), through its agency SME Corp, has approved funding totalling RM1.6 billion under the syariah-compliant SME (Small and Medium-sized Enterprises) Financing Scheme.

Deputy Minister Datuk Ahmad Maslan said since the scheme was started in 2012, some 1,181 applications had been received and 971 applications approved.

“A total funding of RM2 billion has been allocated for this scheme since 2012 to help entrepreneurs and small traders across the nation, and to-date, some RM1.5 billion has been approved, involving 13 banks,” he told the media after a working visit to Penang on Monday.

The scheme would be administered by 13 participating Islamic banking institutions, he added.

Ahmad said the Federal Government would bear two per cent of the profit rate charged on the financing provided by the banks to the SMEs.

“The rebate is specifically to assist the SMEs which carry out business activities in all syariah-compliant sectors except financial services.

“I am very confident that many SME entrepreneurs who are eligible to apply (for the scheme) will benefit from the lower borrowing cost from Islamic banking institutions involved through the rebate provided by the Federal government,” he said.

Meanwhile, Ahmad said in Penang, some RM112.6 million had been approved to-date to 76 SMEs which were syariah-compliant.

“Out of 94 applicants in Penang, 76 companies have received the approval which will enable them to expand their businesses,” he said.

Earlier, Ahmad in his working visit to the state visited Abbott, a manufacturer of medical products, and a factory operated by Agus Food Industries Sdn Bhd, which supplies pasteurised and frozen coconut milk, at the Bayan Lepas Free Industrial Zone. - Bernama

 

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