SMEs laud RM1b additional fund

KUALA LUMPUR: Small and medium enterprises (SMEs) are excited with the additional RM1 billion fund under the SME Development Scheme.

The fund, which will be managed by the SME Bank, is to facilitate SMEs' access to financing to help develop their businesses.

Prime Minister Datuk Seri Najib Tun Razak proposed the RM1 billion fund when tabling 2013 Budget yesterday.

Industry players said the move will help the SMEs as well as entrepreneurs seek financial backing to start up a business.
Source from (Business Times): http://www.btimes.com.my/Current_News/BTIMES/articles/SEMEI/Article/ Published: September 30, 2012

Group publisher of SME Magazine, William Ng, said for SMEs, it is a mixed basket of spot-on incentives and missed opportunities.

"The RM1 billion additional fund for SMEs is welcome, in addition to the RM350 million fund for entrepreneurs of all races in the retail sector," he said.

However, Ng said that from an SME perspective, the govern-ment could have offered more incentives. "While more financing is good, for many SMEs, especially those with the right business model, financing has never been the main concern.

"The real challenge today is the intensifying competition and shortage of skilled workers. Unfortunately, there was nothing on this in the Budget," he said.

Ng, who is also editor-in-chief of SME Magazine said that other initiatives like the Young Entre-preneurs Fund with a RM100,000 cap and two percentage point interest rate subsidy was proof that the government is serious in promoting the SME sector.

Vice-president and general manager for Groupon Southeast Asia and India, Joel Neoh Eu-Jin, also lauded the RM1 billion SME fund. "This will greatly assist Malaysian entre-preneurs to continue to build on their business portfolios."

More initiatives should be rolled out by the Malaysian government to recognise e-commerce as a viable, extensive and profitable business segment, he added.

Young Entrepreneurs Association (GMB Malaysia) president Agil Faisal Ahmad Fadzil told Business Times that the fund should be able to alleviate financing issues faced by some small and medium enterprises. "This is sensitive to the needs of these SMEs ... What is important is for the implementor to share the same sentiment as the government as delivery is crucial."